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What Should I Do With My Canadian Child Benefit?


July was an exciting month for parents across Canada. I’ve never seen so much anticipation over a bank account deposit. Better yet, did you catch some of the comments in some of the parent specific Facebook groups? Oh boy.

I thought about sharing a few here, but that would make my eyes hurt to read again.

You’re reading this because you want no-brainer information that gives your family a leg up immediately after you read this. The idea is that in ten years, you’ll say “I am SO glad I read this raaaandom blog post I found.”

So let’s dissect this lovely non-taxable, income based, monthly payment for all children under the age of 18, with the maximum amounts going to parents making under 30k combined each year, and even more under the age of 6 years old.

*Details schmetails* Here is what matters:


You could wait a year or two, or ten. Or do it now, here is why:

Dreamy option #1: save an extra $200/month at 8% interest for 10 years= $36,500k
Dreamy option #2: save an extra $500/month at 7% interest for 10 years= $86, 500k
Dreamiest option #3: save an extra $1k/month at 6% interest for 10yrs= $163,800k

What impact would that have on your family? And before you say “that could pay for their education”… keep reading.


> See if you can live without that amount in your cash flow plan (budget) and then choose an area to put as much of it as you can to:

> Put all of it to debt!!!! Huge crushing ability here.

> Look at upcoming major expenses you need to save for – like a downpayment, water tank or new vehicle – and start saving regularly for it to AVOID debt later.

> Absolutely, 100% ensure your retirement fund and family insurances are set up next

> If everything looks great, set up RESP’s for your kids or plan a vacation or  if you want but let me make this really easy and super clear…

Wait a minute, I said skip RESP until last? But isn’t it “their” money???

EFF NO PARENTS. It is not their money. You will have no mommy guilt by the end of this because this funding is to better the FAMILY, not your kids possible-but-not-certain-education.

Let me help you get a grip on this: What would you have wanted your parents to do with their child tax benefit?

*stop and think about it for 1 minute*

Would you have wanted them to use it for your comfortable home and to ensure finances were never short? So they could retire one day and help you out later? To avoid stress on their marriage? To stay home and play with you more?

I mean, it’s really a no brainer. Do not get this oder of operation wrong – debt, savings, retirement, home and insurance are all before RESP’s. Got it?

Ok one last thing…


  1. Stop and say THANK YOU for any amount you get. You may have gotten more, you may have gotten less but you get something and that’s money you can get ahead with. *hands clapping*
  2. Before you get all “I need a thank you selfie with Justin Trudeau” for this change up, remember this is actually funded by you, me and every other citizen who pays taxes in Canada (even the ones without kids) so let’s hope we can continue to fund this for a long time to come without landing billions in debt!
  3. Whatever you choose to do, do it now (in the next 30 days) and set it up as hands-free as possible, because we get busy. Kids have activities. School comes back. Work gets crazy. You say “I’ll get this set up soon,” when in fact you could lose an entire year’s worth of interest and free money made! Go, do it now.

    How are you maximizing your child tax benefit?



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