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While it’s every parent’s dream to see their child graduating from post-secondary studies, the costs involved aren’t for the faint of heart. StatsCan has estimated that the average cost of a four-year post-secondary degree in Canada to cost over $90,000, and that doesn’t even account for living expenses, textbooks and other supplies your child might&hellip; Continue reading 5 saving tips to help contribute to your child’s RESP

5 saving tips to help contribute to your child’s RESP

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5 saving tips to help contribute to your child’s RESP - Knowledge First Financial

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Christine Yovorsky

Wouldn’t it be great if your child could afford to pursue the academic program of their choice without cost being a factor?

How saving for education can make your child’s dreams a reality

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How saving for education can make your child’s dreams a reality - Knowledge First Financial

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Charles Smid

Know your spending limit. It is estimated that families are spending less than last year. The average family budget for 2020 is $1104, which is down over last years budget of $1593, and the gift budget for 2020 is estimated at $630, which is slightly down over last year  by $17. Work that budget and plan ahead. Categorize your budget&hellip; Continue reading 10 Holiday Budgeting Tips

10 Holiday Budgeting Tips

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10 Holiday Budgeting Tips - Knowledge First Financial

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If you’ve been financially impacted by COVID-19, there are steps you can take today to get your finances back on track in the future. The sooner you do that, the sooner you can focus on other financial goals, like saving towards your child’s RESP.

3 ways to get your finances back on track after a financial crisis

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3 ways to get your finances back on track after a financial crisis - Knowledge First Financial

If the news about the rising cost of tuition and student debt are keeping you awake at night, you are not alone. Stories about young people graduating from university with mortgage-sized debt loads seem to be everywhere lately. But experts agree, that no matter our income level, parents can help their children meet their education goals by creating and sticking to a written plan.

A written plan can help you and your children achieve their education savings goals

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A written plan can help you and your children achieve their education savings goals - Knowledge First Financial

Preparing to send you son or daughter to college or university is an exciting time – it can also be costly. The rising cost of post-secondary education means, your son or daughter could graduate with a big chunk of student debt without adequate financial planning years in advance. Thankfully there are ways to fund your child’s education besides debt to give him or her a brighter future. Let’s take a look at some of the best ways.

Different ways to fund your child’s post-secondary education

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Different ways to fund your child’s post-secondary education - Knowledge First Financial

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Student success

How you can help your child achieve the best post-secondary education experience possible

Heading to university or college is a rite of passage for thousands of young Canadians every year. While choosing the best program is top of mind for many high school students and their parents, it’s never too soon to start exploring what higher education programs across the country have to offer. By researching post-secondary programs, you can help ensure that your child is well prepared when the time comes to apply for university or college.

A great resource to consult if your child is considering applying to university is Maclean’s. Every year the Canadian magazine publishes various rankings for universities across the country that take into account student satisfaction, university reputation, along with individual program rankings. They also offer an interactive tool that you can use to create a personalized ranking system based on what matters to your child, including categories such as:
<ul>
 	<li>Student/faculty ratios</li>
 	<li>Campus activities and student life</li>
 	<li>Residence and campus food ratings, and more</li>
</ul>
If your children are younger, you can still help them prepare for higher education in the future by encouraging them to join extracurricular activities that will allow them to explore a subject or interest. Participating in sports, volunteering or belonging to student groups may also help them stand out in competitive programs they wish to apply for later on and could even open up future scholarship opportunities.

Older high school students might want to begin to browse university websites and request brochures as early as possible. That way they can be sure they’ve enrolled in the right secondary school courses that meet their desired program’s requirements. These materials can also help your child get a sense of a school’s overall cultural fit for them.

Some young people deciding which university or college they will attend this year will understandably be tempted to pick the same post-secondary school as their friends. As parents you may need to help them think outside of the box. You can offer to accompany them for formal campus tours so they get a close-up look at different institutions and what they have to offer. You can also encourage your child to connect, if possible, with students already attending an institution they are interested in.

It can also be useful to create a pros and cons chart where together you can compare financial considerations such as tuition costs, living expenses, travel and other incidentals. Some key factors to think about are:
<ul>
 	<li>What are the job prospects after they complete a prospective program?</li>
 	<li>What are the specific entrance requirements? Are there activities outside of grades that are taken into consideration when admitting students to a program?</li>
 	<li>How far away from home is your child willing to live? Do they want to live on campus, or will staying close to home ensure they keep focused on studies?</li>
 	<li>How do they learn best? Larger programs often have class sizes that can exceed 500 students. Does the lecture format work your child, or would they prefer smaller classroom settings?</li>
 	<li>What housing options are available?</li>
 	<li>Are there extracurricular activities that appeal to them, including newspapers, student groups, sports, and music or drama societies that will round out their experience?</li>
</ul>
Planting the seed early in your child’s mind about higher education can help them to aspire to goals outside of their immediate experience. With an RESP from Knowledge First Financial, you have the peace of mind knowing that you can give them the financial support and choice in whichever education path they choose.

Succeeding at school

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I'm gonna read this whole book today

Wouldn’t it be great if your child could afford to pursue the academic program of their choice without cost being a factor?

It’s possible through proper planning.

However, without it, your child may not be able to afford to go to college or university, which can make it much harder to succeed later on in life.

Let’s look at some advantages that can come from saving for your child’s education.

&nbsp;
<h3>Earnings Potential</h3>
Statistics show that your child’s earnings potential is considerably stronger if they have a post-secondary education.
<a href="https://www150.statcan.gc.ca/n1/pub/11-626-x/11-626-x2014040-eng.htm" target="_blank" rel="noopener">According to Statistics Canada</a>, women with a college certificate can expect to earn 1.4 times more than their high school graduate counterparts, while women with a bachelor’s degree can expect to earn about 1.7 times more.

This also holds true for men, who can earn 1.3 times more than a high school graduate with a college certificate and 1.7 times more with a bachelor’s degree.

Earning more isn’t just a status symbol. It’s not just about living in a bigger house or parking a nicer car in the driveway. Earning more can lead to a higher quality of life and enable your children to provide their kids with more opportunities that they may not otherwise have.
<h3>Giving the Gift of Choice</h3>
When you set money aside for your child’s education, you open doors for them and ensure that they aren’t constrained when deciding their future.

This could help them choose the best program and school for them, getting them into their desired field, while improving their happiness and overall occupational motivation in the future.

Going to a good school or a prestigious program isn’t just about the professors or coursework either. By broadening a child’s options, you also open them up to a variety of positive experiences and connections. Attending your school of choice can do a lot to motivate you to make the most out of your academic and extracurricular life.  It can help catapult you to a successful career and life.
<h3>Avoiding Mental Anguish</h3>
In extreme cases, a lack of savings for education can mean missing out on post-secondary schools altogether. If your parents earn too much, you might not be eligible to receive much in the way of student loans, meaning that you may have to work long hours to afford your post-secondary degree or skip it altogether.

By helping your child out and saving early on, you can help them alleviate a lot of the stress associated with the financial side of academics, allowing them to focus on what matters most: their education.

At the end of the day, all these examples tie back to how saving early can enable your children to maximize their potential. By setting up an RESP for your child, you can provide them with their desired education one day and make their dreams become a reality.

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Blog Cover Photo - 5 Reasons for an RESP

<p>Do you keep meaning to open an RESP for your kids but never quite get around to it? The earlier you can start saving for your children’s education, the better, but at the same time, it’s never too late! Here are some great reasons why you should get started with an RESP as soon as you can.</p>


Do you keep meaning to open an RESP for your kids but never quite get around to it? The earlier you can start saving for your children’s education, the better, but at the same time, it’s never too late! Here are some great reasons why you should get started with an RESP as soon as you can.
<h3>Self-directed flexibility.</h3>
If you open an individual RESP, it’s entirely up to you when and how much money to contribute to an RESP, up to a lifetime limit of $50,000. In a year where money is tight, you can put in less money, or hold off on contributions altogether and catch up later. Unused contribution room is carried over to future years, so you never lose the opportunity to put in more.
<h3>Guaranteed annual grants with contributions.</h3>
One of the very best reasons to open an RESP? The government will match a percentage of your contributions! Any money you put in, up to $2500 per year, will be matched at 20% by the federal government. If you can contribute the full amount, this means your child’s RESP will receive an additional payment of $500 each year!

Lower-income families may also qualify for an additional grant issued every year they remain eligible, independent of contributions.
<h3>Steady, consistent, long-term growth, tax-free!</h3>
Money in an RESP, along with any applicable government grants, will continue to grow in interest and investment gains, year after year, tax-free! Of course, the funds will be taxed when your child withdraws from it for school, but since he/she is unlikely to be earning significant income when they start post-secondary studies, the tax rate will be minimal.

The earlier you can start saving in an RESP, the longer the funds will have to compound in growth.
<h3>You can do it with others.</h3>
If saving for post-secondary seems like a daunting task, it doesn’t have to be. Anyone can contribute towards an RESP, including grand-parents, extended family members or friends. The money can be pooled together in one plan, or each party can open their own, keeping in mind the maximum limit is per beneficiary, not per plan.

For example, some grandparents may prefer to invest funds in your child’s future rather than buying toys for special occasions. And depending on their age, your child can even start contributing to their RESP themselves, in the form of job earnings or birthday money. As a result, you may find it easier than expected to reach the RESP goals you have for your child.
<h3>Multiple paths for the future.</h3>
If your child decides not to pursue post-secondary education, you still have options with an RESP. For one, there’s no rule that the money must be used immediately after high school. You can keep an RESP open for up to 35 years. And they’re not limited to traditional post-secondary options either. RESP funds can be directed towards part-time, practical education or trades training. You can also transfer the funds to another child.

RESPs help boost the funds you put away for your child in a way a conventional savings account never can. Take advantage of these benefits for your child’s future!

5 reasons why you should open an RESP

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Free grants your child is entitled to with an RESP

Saving money for your children’s future? Consider an RESP! Managed well, yearly contributions will grow year after year until your child is ready to start a post-secondary program.

You might not know that your RESP contributions are also eligible for grants! To encourage families to save for education, the federal government provides each child with a percentage match on the funds contributed into their RESP’s. In other words, you’ll receive free, no-strings-attached money based on your contribution. Under certain circumstances, you may even receive an additional grant simply for opening an RESP account, regardless of whether you put money into it or not.

There are two types of RESP grants: the Canadian Education Savings Grant and the Canada Learning Bond. Let’s take a closer look at both.
<h3>Canadian Education Savings Grant</h3>
Every child with an RESP is eligible for the Canadian Education Savings Grant (or CESG) which has a maximum payout of $7,200 – enough to cover a full semester for most post-secondary programs. The CESG is calculated and received based your contributions. The government will match 20% of your contributions every year, with a maximum of $500 annually. This means that for every dollar put into your RESP, the government will contribute an additional 20%. To receive the $500 maximum grant every year, you’ll need to put aside $2500 per child.

However, if you’ve done the math and this amount is on the higher side for your budget, it shouldn’t deter you from opening an RESP as you will still receive 20% on the amount you contribute. Also, any unused contribution (and grant) room can be carried forward to future years (up to a maximum annual CESG grant of $1000)!

For example, if you contribute $1000 in one year, you’ll receive a CESG payment equal to $200 in your RESP. If you were to put in up to $4000 in the following year, you could receive $800 in grants.

For this reason—and others, like the power of compound savings and investment—it’s ideal to open an RESP as early as possible. You’ll have more flexibility to make up for missed contributions, and the funds have a long-term opportunity to grow.

Even if you’re not sure when you’ll be able to max out your contribution room, you should still open an RESP. Any money you contribute is tax-sheltered, which means it can grow tax-free—a benefit you won’t enjoy if you open a standard savings account. Even a small yearly payment can grow into a significant sum, and with the help of receiving 20% on your savings, this can add up to pay for your child’s choice of program and tuition costs after high school.
<h3>The Canada Learning Bond</h3>
There’s an additional grant available for Canadians with an RESP called the Canada Learning Bond (or CLB). Recognizing that lower-income families may find it challenging to put aside money in an RESP, the federal government will contribute $500 the first year a child is eligible for the grant and $100 every year they continue to qualify, up to $2000. The CLB is essentially a free $2000 from the government for opening an RESP, whether you decide to contribute or not.

Unlike the CESG, this grant is not calculated as a percentage of the amount contributed. Instead, the government will directly deposit this amount in all qualifying RESP accounts. It makes opening an RESP a wise financial choice. Families who are eligible for the CLB will receive funds regardless of whether they’re able to contribute, and any money they can put aside will also be eligible for the CESG.

To qualify for the CLB, a family with 1 to 3 children needs to have an adjusted net income of $49,020 or less in 2021. You can learn more about CLB eligibility on the Canada Revenue Agency website <a href="https://www.canada.ca/en/employment-social-development/services/learning-bond/eligibility.html">here</a>.

Make an RESP part of your family’s financial plans and take advantage of the grants you are entitled to so you can supercharge your investment!

Three financial New Year’s resolutions that are easy to keep

Welcome to 2022! Most of us relish the feeling of a fresh new start and the opportunity to make some big changes in our lives. But studies have shown time after time that it’s small, incremental tweaks that are the most sustainable.

So if you’d like to start the year off in better financial health and more confidence in your money management skills, these three tips are simple, achievable and super satisfying to put into action.

<img class="size-full wp-image-9169" src="https://k1f.wpengine.com/wp-content/uploads/iStock-Budget.jpg" alt="" width="300" height="192" />
<h3>Create a budget</h3>
If you’ve ever wondered where all your money goes, you need to start budgeting.

By tracking your expenses, purchases and savings, you’ll get a better picture of your finances, rather than just estimating or going by your gut.

Budgeting used to be a time-consuming, manual activity, and it’s true that it still requires some effort up front, but with a variety of apps and software that can make it much easier, you no longer have an excuse to skip the number crunching. Some will even sync with your bank accounts, credit cards and other financial products to make quick work out of the whole process.

You likely won’t have much wiggle room when it comes to your fixed expenses, but your discretionary spending might yield some surprises—and with that, opportunities to re-evaluate and cut back, if needed.

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<h3>Move beyond just saving.</h3>
Putting aside money for savings should be a priority every month, even if it’s a small amount.

Whether the money is going in a rainy-day fund, towards a big purchase or for your children’s education, saving is a vital part of any financial plan, but you can do better than just putting funds into a savings account, where the interest earned is often just pennies.

It’s time to look into investing as well! Well-managed investments can help grow your nest egg at a much faster rate than simple savings. And with so many investment options out there, there’s something that will fit your risk tolerance and financial goals perfectly.

Start by researching some simple investment strategies online, or speak to a financial advisor for more in-depth insight.

<img class="size-full wp-image-9176" src="https://k1f.wpengine.com/wp-content/uploads/iStock-Budget-3.jpg" alt="" width="300" height="193" />
<h3>Pay down your debt</h3>
One of the best ways to “save” your money is by paying off your debts!

Interest rates on your debts are usually much higher than those on your savings, making it prudent to prioritize getting rid of any financial obligations you have before you aggressively save or invest. In other words, the faster you can pay off your debts, the less you’ll have to pay on them overall.

There are several strategies you can use, like focusing on your highest interest debts first, or clearing your smallest debts for a morale boost and working your way up. Reducing your debt loads also has other benefits, such as an increase in your credit score and allowing you to allocate your excess money elsewhere. You’ll also feel less stressed and worried about your financial health!

Whether you find personal finances a fun challenge or a tedious chore, you’ll likely have some hidden opportunities to optimize how you spend and save your money.

These tips will help you get started on improving or maintaining your family’s money in a way that will best serve your goals and needs.

3 ways children can give back this Holiday Season

Are you looking to give your children a teachable moment this holiday season?

The holidays are about a lot more than gift giving – they’re also about giving back.

On that theme, here are three ways your children can give back this holiday season.
<h3>1. Making Something</h3>
Children may want to give back, but unfortunately children don’t have money, so what’s a child to do?

The fact that your child doesn’t have money shouldn’t stop them from giving back this holiday season. Instead of buying something, your children could make something.

Some of my fondest memories I have as a child is making arts and crafts with my parents. We would draw in pencil crayons, paint and make paper mâché.

Arts and crafts time with your kids can be a great way to teach them a lesson in generosity and keep them busy. It’s a win-win situation for both parents and children.
<h3>2. Donating Gifts</h3>
If you’re like most Canadian families, your kids will be fortunate to receive more gifts than they know what to do with during their childhood.

Some of the gifts will end up getting used, while some of them will end up at the bottom of their closet.

If your children received gifts that they don’t plan to use, why not give them to a charity or a family in need? It can be a great teachable moment for your children and a great lesson in gift giving.

If your children don’t have any gifts to give, why not go with them to pick out a toy from the store for a child in need? Again, it will teach them a great lesson in generosity for later in life.
<h3>3. Volunteering</h3>
A family tradition we have is volunteering around the holidays.

Volunteering helps us realize how fortunate we truly are.

Your kids may assume that all children receive a ton of gifts around the holidays, when that simply isn’t the case. Volunteering will help teach your children that not all families are as fortunate as your own.

There are many ways your family can volunteer during the holidays whether it’s a soup kitchen, toy or clothing drive. Whatever the cause, the good feeling your children are likely to get from volunteering is a feeling that will hopefully follow them throughout their lifetime, so they too can pass it along to their children one day.