Kids and Financial Programs
When do you start saving and programs for your kids? This question came up (again) for me this weekend with my kids home from University and more than once I came across points where maybe I should have started my daughters in some programs sooner than now.
Both my daughters flew on airlines that use Aeroplan, and for some reason even though I paid for their tickets, I am not able to accumulate points for their flights, thus if they had been members of Aeroplan, they could have started collecting points for possible flights later. This one I only figured out at the airport, and yes I have signed them up and I may be able to get the flights from this past week included, can’t hurt to ask, can it?
Given both my daughters are already over 18, putting more money directly into their RESPs does not really make much sense, so now would be an excellent time to create TFSAs for them, even if they don’t put much money in them. The RESP add-on from the government stops once your child reaches 18, so putting more money there is possible, but not really advantageous. If you put the money into a TFSA, it grows tax free for them, and if you don’t put any money in, they still grow the TFSA limit (i.e. it adds year to year), which is good too.
These two programs were the ones that came up for me, but are there other ones for more mature children to take advantage? For younger children the obvious setting up of an RESP or an RDSP seems obvious, but you could always put money In Trust as well for the kids, depending on how much money you are talking about.
Hope everyone had a wonderful Thanksgiving as well (and were not bombed with Turkeys).
Got a few mentions in some Carnivals too:
- A CanadianFinanceBlog hosted the Carnival of Personal Finance #278 Happy Thanksgiving, which included my post about Fathers and Money.
- Free Money Finance hosted The Carnival of Money Stories which also featured Fathers and Money.
- A CanadianFinanceBlog also hosted the Canadian Finance Carnival #5 which featured a mess of posts from me.