9 Ways to Set Baby Up Financially for the Future

While most parents do everything they can to help their young adult children achieve financial independence, there’s one thing many of us never consider: We can set them up for success while they’re still very young.

The problem is, when it comes to finances, it can all feel so overwhelming. It’s not like we were taught Financial Literacy in school. And that’s why we want to make it easy for you. We’ve done some digging and have compiled a list of 9 ways you can get your child set up for the future – today! – and feel confident knowing you are building them a strong financial foundation.

Set Them Up for Success While They’re Still Young

1. First things first, make sure you’ve applied for the Canada Child Benefit. It’s a tax-free monthly payment from the government that helps eligible families with the cost of raising children, and can be collected until each child reaches their 18th birthday.

2. If Baby is 1 year old or younger, apply for a Whole Life insurance policy through Serenia Life’s Grow With Them Plan, and you’ll be eligible for our Bundles of Joy Benefit (a $100 baby bonus) – you know, to help you pay for some of those diapers.

3. Speaking of life insurance, did you know that purchasing the right policy for your child is actually an investment in their future? A Whole Life policy comes with guaranteed cash values that will grow significantly over the course of your child’s life – hence the name, “Grow With Them.” If you start early enough, this cash value could help with the cost of post-secondary education, a wedding, or a down payment on a home.

4. Host a ‘Savings Account’ Shower. If you’d prefer to invest in Baby’s future (and would like to avoid collecting all those plastic toys, while you’re at it), consider an outside-of-the-box baby shower, and ask guests to contribute towards Baby’s new savings account in lieu of gifts. This will save guests both time and effort – so while you may feel a little awkward asking, they may feel relieved!

5. Put money towards post-secondary education. With an RESP, you can regularly contribute to this educational savings fund knowing that the government will match it up to $7,200 via the Canada Education Savings Grant. Once you’ve reached the lifetime maximum of $50,000, you can let it sit and gather interest until your child goes to school. (Plus, when your little one is ready to head off to university or college, they can apply for our 1,000 scholarship – only Serenia Life members are eligible for this benefit!)

6. Low or modest-income families can receive extra help with the Canada Learning Bond – a maximum deposit of 2,000 into the child’s RESP – whether or not the family has made any contributions themselves.

7. Get life insurance for yourself and your partner. If you depend on two incomes to cover your monthly bills and your mortgage, life insurance is a must. It can act as income replacement in the event one parent dies too soon and is left carrying the household debt. (And by the way, single caregivers and stay-at-home parents need life insurance too! Here’s why.)

8. 8. Don’t forget critical illness protection – for the entire family. While nobody wants to think about the possibility of their loved ones falling ill, it’s really important to plan for it. (Find out why in this short podcast episode). The good thing about Serenia Life’s newest product is that you can pay a bit more each month and be guaranteed to get your money back if you never get a payout. Now that’s a win-win!

9. Gather all of this important information in a will. Wondering how a will has anything to do with your child’s financial future? Well, if all of this important information isn’t legally documented, things (like money and assets you’ve left for the kids) can fall through the cracks. The good news is, Serenia Life members are eligible for a free online will or for a $150 reimbursement if a lawyer drafts or updates their will.

Have questions? In need of guidance?

One of our friendly Serenia Life advisors would be more than happy to speak with you about your goals for Baby’s financial future. Fill out the form below to get started.

Serenia Life Financial is not responsible for third-party website content. Please be sure to research your eligibility for each program outlined above.