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What happens if students take a gap year? Or only go to school part time? How do I know how much to withdraw? Luckily, we have you covered.

Withdrawing RESP funds during uncertain times - Knowledge First Financial

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Withdrawing RESP funds during uncertain times

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Post-Secondary-Education-1

Student success

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

How much does it cost to raise a child from diapers through braces to high school graduation? <a href="https://www.moneysense.ca/save/financial-planning/the-real-cost-of-raising-a-child/" target="_blank" rel="noopener">According to MoneySense.ca, the average cost of raising a child to 18 years old is nearly $250K</a>. And if you plan to financially support them during their years of post-secondary education, it will be even more costly.

To help encourage couples to have children and to help with the cost of raising a child, <a href="https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-child-benefit-overview/canada-child-benefit-apply.html" target="_blank" rel="noopener">the government offers the Canada Child Benefit (CCB)</a>. If you’re a parent in receipt of or eligible for the CCB, there’s good news! The government is increasing the amount that parents can receive. Let’s take a closer look at the changes to the CCB and how parents can make the most of them.
<h3>Canada Child Benefit increasing to a new maximum of $6,639</h3>
Beginning in July 2019, the CCB is increasing. In case you’re a new parent and you’re not familiar with this benefit, the CCB is a tax-free financial boost for families.

Starting in July, the new annual maximum benefit is $6,639 for children under 6 years old and $5,602 per children ages 6 through 17. This adds up to an increase of about 3 percent from current rates or a few hundred bucks on a yearly basis, since 2016.<sup>1</sup>

But not everyone is eligible for the CCB. The more children you have, the more the CCB is reduced by. Likewise, if your family has a high income, you’ll likely receive nothing.

Does the CCB sound good so far? If you haven’t already applied and you’re eligible, you can register your child’s application through the CRA’s Automated Benefit Application. However, if you’re a parent who’s behind on your taxes, you’ll need to get caught up first before you’re eligible to start receiving the CCB.
<h3>Making the most of the extra money</h3>
If you’re eligible for the increase in the CCB, it’s a good idea to be proactive and make a plan for the extra money. That way, you’re more likely to make the most out of it.

A great use of the increase to the CCB is to contribute the extra money to your child’s RESP. A RESP allows you to proactively save for your child’s post-secondary education. Not only does the money you contribute to an RESP grow tax-free, you’re also eligible for a grant of up to 20 percent of whatever you contribute up to a maximum of $500 per year or $7,200 over your child’s lifetime. (And if your family has a qualifying low-income, you may be eligible for the Canada Learning Bond. That means up to an extra $2,000 in your family’s pockets over the lifetime of your child’s RESP.)

The easiest way to up the contribution to your child’s RESP is to increase the monthly amount you’re already contributing. If you can increase the contribution amount by $25, $30 or even $50, it can go a long way in providing a brighter financial future for your child!

<sup>1</sup> Source: <a href="https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-child-benefit-overview/canada-child-benefit-apply.html" target="_blank" rel="noopener">https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-child-benefit-overview/canada-child-benefit-apply.html</a>

How to make the most of the increased Canada Child Benefit

Succeeding at school

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I'm gonna read this whole book today

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

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.

How Saving for Education Can Make Your Child’s Dreams a Reality

scoring-a-goal

Scoring a Goal

<p>Sports aren’t just good for your child’s physical health; sports are great for mental health as well. In this article we’ll look at how participating in sports can help children develop transferrable skills and valuable traits that can apply both in the classroom and in life.</p>


Sports aren’t just good for your child’s physical health; sports are great for mental health as well. In this article we’ll look at how participating in sports can help children develop transferrable skills and valuable traits that can apply both in the classroom and in life.
<h3>Teamwork</h3>
As the saying goes, there’s no “I” in the word “team.”

Sports help teach your child teamwork and selflessness.

A team sport like basketball or soccer teaches your child the importance of working together. Without good teamwork, you won’t get anywhere.

The same goes for the classroom and eventually the workplace.

Some people love teamwork and others dread it. However, it will be important for your child to learn to work with others early on as many industries involve working with others at some point or another. Your child will also undoubtedly find her or himself in a team situation in the classroom.

Beyond team settings, the skills learned from working with teammates can help develop emotional intelligence which can help children understand different personalities and how to communicate with others as they grow.
<h3>Discipline</h3>
Discipline is another valuable trait that sports instill in children.

There are so many distractions for children these days – from TV to smart phones and video games. It’s hard for children to be still and focus.

Sports help teach your child the discipline she or he needs.

Your child will need to show up at practice at a specific time each week, and typically coaches have consequences set in place if punctuality is not upheld.

The extra runs and pushups not only help children with their physical fitness, but they are also methods of improving their listening skills while teaching them to follow instructions and respect authoritative figures such as teachers and coaches.

Discipline taught from sports will be helpful later in life when your child needs to show up at school and work on time. It’s not just punctuality - sports will teach your child focus on the task ahead of them. In the classroom, discipline is what will cause your child to put down their phone and focus on the lessons being taught.
<h3>Goal Setting</h3>
Goal setting is a powerful way for your child to achieve great things in life. Setting goals early on will help your child put their life in the next gear as they continue to grow and expect things of themselves.

Whether your child is playing a team or individual sport, goals will need to be set to enhance their skills and achieve success.

In basketball, this could be improving ball handling skills whereas in tennis this could mean developing more strength to hit the ball with more power.

Setting goals takes self-reflection, determination, and a commitment. Beyond individual skills, sports are a great way to set measurable goals such as winning a championship or running sprints within a certain time limit.

The same goes for school. Whether it’s scoring a certain grade on a test or a report card, setting goals are an important part of self-development and hard work.
<h3>Communication</h3>
Communication is a key skill both in sports and life.

If your child doesn’t let the other players around them know what she or he plans to do, there could be a misunderstanding, which can lead to the other team scoring a goal. Instances of successful and unsuccessful communication experienced through sports will teach your child when and how to communicate with others.

In the classroom, your child can use the communication skills learned through team sports to communicate with their teacher and fellow classmates. Whether it through a group project or when making new friends, building communication skills early on will help your child’s experiences at school.
<h3>Listening</h3>
Listening does not always come naturally, especially with the many distractions around us. It is a skill that is developed over time.

In sports, good listening skills are crucial.

To execute on the court or field, your child must listen to the coach to understand what the game strategy is. That is no different than listening to a teacher in the classroom. Your child will have to listen to what the teacher is saying, otherwise, some important lessons could be missed and it could hinder their growth.
<h3>Conclusion</h3>
Sports can help your child immensely in many aspects of their life. The combination of physical and mental development is what makes participation in sports very beneficial early on for children.

More than a game, sports are a tool for self-development, exploration, and enjoyment.

Early Child Development through sports

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How can you help your child transition back to school?

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Children across Canada are returning to some sort of school experience this fall after spending a long time away from a formal classroom. While all families experience some degree of anxiety around managing the transition back to school, this year every family will be facing unique challenges as they adapt to yet another “new normal,” and wonder how the experience of the last few months will impact learning and well-being.

This month, Knowledge First Financial will be drawing on conversations with experts from across Canada, who are lending a hand to provide expert points of view on the most unusual “Back to School” season in memory.

Our first conversation is with Dr. Anna Richter, a clinical psychologist from the Maritimes who specializes in treatment for children and adolescents. Dr. Richter has previously worked for school boards in Ontario and Nova Scotia, and often works with children who have learning disabilities.

<strong>KF: Dr. Richter, what should parents anticipate when their children return to a structured school environment after so many months away from school?</strong>

<strong>Dr. Richter:</strong> Just as adults may experience stress to varying degrees when transitioning back to in-person work after working from home, children will experience different levels of stress when transitioning back to school. Each child experiences stress in different ways and parents are in the best position to monitor their child for signs of stress as they know their child best. Children will require time to adapt to the transition back to the structured school environment.

Signs of stress in children can range from stomach aches or other physical complaints (once you’ve ruled out physical health issues), changes in sleep and eating (could be an increase or decrease), irritability, and an increased need for reassurance.

<strong>KF: How can parents help their children prepare for returning to school effectively to support their learning?</strong>

<strong>Dr. Richter: </strong>Arriving at school well-rested is important for supporting children’s learning. Children often stay awake later and sleep in more during the summer months. As school approaches, parents can work on shifting their child’s sleeping schedule to be prepared for earlier wake up times when school starts. Parents can also find opportunities to practice academic skills in relaxed and fun ways over the rest of the summer. For example, having kids help write the grocery list or write a letter to a grandparent can help with language and spelling skills. Parents can check with their child’s school regarding access to educational apps that can be used during the summer months.

<strong>KF: For students with learning disabilities, how does this large gap away from school impact them differently?</strong>

<strong>Dr. Richter:</strong> Children with learning disabilities represent a varied group of students. While some children will transition easily back into the classroom, others will experience challenges. Children with learning disabilities may have struggled more than their peers to keep up with self-paced/virtual learning during the pandemic and thus may be experiencing anticipatory stress about the return to school. Children with learning disabilities may require and/or benefit from one-on-one teacher support and depending on the availability of this type of instruction, may have found learning at home especially challenging. As each child’s situation is unique, speaking with your child’s school team can help to ease the transition. For example, if your child is typically provided with assistive technology like spell-check or speak-to-text on a computer, ask how this will continue in the fall.

<strong>KF: What are some resources that can address the specific needs of parents who have children with learning disabilities? Especially during the back to school transition.</strong>

<strong>Dr. Richter:</strong> Children with learning disabilities are more vulnerable than peers to mental health challenges such as anxiety and depression. I recommend that parents seek support from a healthcare professional, such as their child’s family physician or pediatrician.

Some useful websites to check out are:

<a href="http://understood.org/" target="_blank" rel="noopener">understood.org</a>: This site has a terrific back to school resource section for Fall 2020, which is suitable for all parents, but has a special focus on the needs of children with Learning Disabilities

<a href="http://ldathome.ca/" target="_blank" rel="noopener">LDathome.ca</a>: This website has been built to help bring resources to the households of Ontario impacted by Learning Disabilities (LDs).

<strong>KF: Our many thanks to Dr. Richter for sharing her valuable insights into the upcoming transition back to school!</strong>

As Canadian families begin to navigate “Back to School” in 2020, Knowledge First will continue to provide information, support and curated resources to Canadian parents and their children. We are all in this together, as our communities carefully navigate a safe and healthy return to the classroom.

<strong>BIO:</strong>

<img title="annarichter.png" src="https://knowledgefirstfinancial.ca/getattachment/602459d9-8d84-44d0-b098-bf1e046726e2/annarichter.png.aspx" alt="annarichter.png" />

<strong>Dr. Anna Richter
Clinical Psychologist</strong>

Dr. Richter specializes in treatment for children and adolescents.
Dr. Richter has previously worked for school boards in Ontario and Nova Scotia, and often works with children who have learning disabilities.

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Do’s and don’ts to protect your finances in times of uncertainty

Are your family’s finances prepared for times of uncertainty? Few could have foreseen the Coronavirus pandemic affecting Canadians as much as it has. If you’ve prepared in advance for this, give yourself a well-deserved round of applause. If you didn’t prepare, don’t panic. It’s not too late to do so. Things will get better.

Here are some do’s and don’ts to protect your finances in times of uncertainty.
<h4>Don’t panic</h4>
When the stock market drops, the single worst thing you can do is sell your investments at a huge loss. But that’s the gut reaction for a lot of Canadians.
The old saying is “buy low, sell high,” not “sell low, buy high,” but you’re doing the exact opposite when you sell your investments after a major drop in the stock market.
When you’re investing in something volatile like stocks, it’s important to keep in mind your time horizon. Time horizon is how long you anticipate before you cash out your investments.

History has proven that stocks provide a better rate of return than bonds over the long run. If you’re investing in stocks, mutual funds or ETFs in your child’s RESP and your child isn’t going to college or university within the next 10 years, there’s no need to panic when the stock market drops in value. Your child still has plenty of time before she or he needs the money.

While you should certainly keep an eye on the long-term trend, by watching what the stock market is doing minute by minute, all you’re going to do is giving yourself a headache. As difficult as it may seem, in instances like this it’s best to not pay attention to the stock market, otherwise, you could find yourself making a poor decision.
<h4>Do look for buying opportunities</h4>
Nobody likes it when the stock market goes down in value, but there is a silver lining to it. If you have spare money to invest, it’s a great buying opportunity.
Think about it like a sale at your favourite retailer, but instead of it being a sale at the mall, it’s a sale on stocks. When the stock market goes down in value, you can obtain your favourite stocks at a discount.

While you probably shouldn’t try to time the market, when a blue-chip stock goes down in value, you know it will almost always bounce back, so why not consider buying it while it’s at a discount?
<h4>Do have an emergency fund</h4>
It’s hard to say when the next recession will be. It could be tomorrow; it could be 10 years from now. Nobody can say for certain when it will happen, but it will happen. Wouldn’t you rather be prepared instead of being caught off guard?
You can do that by planning for the worst. A good start is having three to six months’ living expenses in a high-interest savings account. That way you can withdraw the funds the next time something comes up, rather than going into debt to cover emergency expenses.
<h4>Don’t hoard the essentials</h4>
Be friendly to your neighbours and don’t hoard the essentials during a time of uncertainty. While you may feel better if you buy enough toilet paper to last you until the next millennium, your neighbour may miss out on the opportunity to purchase some for themselves due to your hoarding nature.
Similarly, if you buy all the hand sanitizer a store has, you may be able to protect yourself, but what about your neighbours who couldn’t get any because it was “sold out” at all your local retailers? If they don’t have any, not only are you putting their health at risk, you’re putting your own at risk too. There is enough for everyone, if we all just take only what we need.
<h4>Do stick together</h4>
Going through times of uncertainty is never fun. However, despite physical distancing, we can still stick together with your family, friends, neighbours and coworkers by lending a helping hand. Something as simple as offering to pick up groceries for your elderly neighbour can go a long way, and make it easier for everyone to get through this.

Did you recently graduate from college or university in the middle of Covid-19? Graduating can be an exciting and stressful experience, so it is perfectly understandable that some students may be feeling even more anxious about graduating during the Covid-19 pandemic. To help make the transition from student life to adult life easier, here are some financial tips for recent grads.
<h3>Live like a student after graduation</h3>
When you land your first full-time job, it can be tempting to start living the high life. As a recent grad, you may experience pressure from your friends to indulge in the nicer things that life has to offer. This could mean renting an upscale apartment or buying a fancy car. But living like that right after graduation will set you back financially, especially if you still have some student debt.

You’re probably already used to living like a student, so why not continue to do so? This may not be the most exciting thing to hear, but it’s all about the long-term. Short-term pain for long-term gain, as the saying goes.

Instead of going out and renting the most expensive place you can find, why not consider living with roommates for the first while? It will enable you to start saving for the future.

If you live in the city, do you really need a car? It is smart financial decisions like this that can really pay off in the long run.
<h3>Prioritize paying off your student debt</h3>
Do you aspire to own a home one day? A home can be a great way to build wealth long-term, but it also requires long-term planning.

When you apply for a mortgage, any other debts that you have is factored into the equation. If you have student debts, this can substantially reduce your maximum purchase price. Through goal setting, you pay off your student debt sooner.

Set yourself a goal of when you would like to have your student debt paid off by - let’s say in three years. Then, work your way backwards. Figure out how much money you’ll need to put towards your student debt each month in order to achieve that.

Do you have enough money from your current budget? If not, you might consider cutting back on your spending or getting a side hustle. By paying off your student debt, it can help your home buying dreams become a reality one day soon.
<h3>Establishing your credit</h3>
Again, if you plan to make a big purchase, such as a car or home, you’ll want to take steps after you graduate in order to that. One important way to do that is by establishing good credit.

If you don’t already, you may want get a couple of credit cards with at least a $2,000 limit. Use them responsibly. That means paying off the balance in full each and every month. By doing that for a couple of years, you’ll help to establish your credit score to make it a lot easier to apply for a car loan or mortgage later on.
<h3>Relief benefits available to post-secondary students</h3>
If you’re a new grad graduating during the current Covid-19 pandemic, there are some things you’ll want to know.

If you worked during the school year and earned an income of at least $5,000 in 2019, or the 12 months before the date of your application, you may be eligible for the Canada Emergency Response Benefit (CERB). The CERB provides $2,000 a month for up to four months if you’ve lost income due to Covid-19.

If you’re a new grad who’s looking for a job, but haven’t stopped working because of Covid-19, unfortunately you won’t be eligible. Likewise, if you did not work during the school year, you won’t be eligible for the CERB.

Even if you don’t qualify for the CERB, help is coming your way. Payments on Canada Student Loans will be put on hold March 30 to September 30. Your student loan won’t accrue any interest during this time. Interest relief is also available for similar provincial student loans.

<a href="https://www.cfs-fcee.ca/what-students-need-to-know-about-the-federal-governments-covid-19-economic-response-plan/" target="_blank" rel="noopener">For a full list of relief measures for student and eligibility criteria, you can check out this article.</a>

Financial tips for recent grads

Getting kids back to reality amidst real Covid-19 concerns

Now that many parts of the country are reopening and kids are going back to preschool or daycare, how do we prepare them for the “new norm”? This isn’t just a regular transition. Children are facing new challenges brought on by the pandemic surrounding health and safety, social distancing and separation anxiety from being away from their parents again – maybe for the first time in months.

After being at home together so long, it’s possible your child (and you) have some apprehension about having them return to the classroom. You’re not alone (yes, you’re probably sick of hearing we’re all in this together, but it’s true). Here are some ways you can ease their anxiety and help them transition back to a pre-pandemic schedule.
<h3>Talk to your child’s caregiver about your concerns.</h3>
Find out what your preschool is doing to keep children safe and what new rules they need to follow. Ask if there’s a new drop-off routine and try to prepare them for your departure if you can’t accompany them into the building.
<h3>Keep communication open with your child.</h3>
Right now, they may need more than quick reassurance. Listen closely to your child’s worries and respond to their questions to help them feel safe. Let them know they’re not alone and a lot of people are feeling the same way. Reinforce the benefits of rules that are being put in place (like social distancing) to help protect them.
<h3>Watch for any behavioural changes.</h3>
Toddlers can’t always use language to fully verbalize their feelings so pay close attention to nonverbal messages. Your child may act out by being clingy, shy or more defiant than usual. They may even revert back to babyish behaviors. This could require a little more patience and encouragement on your part.
<h3>Find everyday solutions for coping.</h3>
Help your child come up with ways to deal with any concerns they may have. If they’re feeling separation anxiety, suggest bringing something special to the classroom they can keep close, like a favourite toy or stuffed animal. It will bring him or her comfort and act as a reminder of you.
<h3>Keep up with morning and nighttime routines.</h3>
Regular bedtime and wake up times will help your child get back to a “new normal” faster. Consider starting a new good-bye routine to help prepare your child for when you leave.
<h3>Practice typical preschool activities.</h3>
Acting out some daily routines like outdoor playtime, having “circle time” and reading books about everyday habits like handwashing can help get your child readjusted.
<h3>Have an optimistic outlook.</h3>
Try to avoid worrying in front of your child. Toddlers are sensitive to your reactions and can pick up on your energy. As long as you maintain a positive attitude, they’ll feel love and support from you at a time when they need it most.

Although you can never completely predict what it will be like for your child when they return to preschool or daycare, there are ways you can <a href="https://www.zerotothree.org/resources/3413-what-comes-next-back-to-child-care-following-shelter-in-place" target="_blank" rel="noopener">help prepare them</a> a little better for the experience.
<h3>Childcare workers are making efforts to keep kids safe too.</h3>
While you’re busy preparing your child, trust that daycare centres and preschools are taking the proper precautions and going above and beyond to help children adapt to new safety measures; from creative ways to maintaining physical distancing to daily health checks.

Some of these efforts include:
<ul>
 	<li>Significantly reducing class sizes.</li>
 	<li>Increasing sanitization throughout, especially on high touch surfaces.</li>
 	<li>Daily screenings for Covid-19 symptoms.</li>
 	<li>Purchasing additional toys and equipment to prevent sharing.</li>
 	<li>Moving playtime outdoors (weather permitting).</li>
 	<li>Reinforcing the importance of regular handwashing.</li>
 	<li>Using coloured tape or markings to section out table-top areas.</li>
 	<li>Individualizing shelves with toys and supplies for each child.</li>
 	<li>Introducing visual cues like hula hoops to establish safe boundaries.</li>
 	<li>Adding staggered floor decals to show kids where they need to line up.</li>
</ul>
For extra peace of mind, <a href="https://www.ctvnews.ca/health/coronavirus/daycares-find-unique-ways-to-teach-physical-distancing-to-young-kids-1.4996589" target="_blank" rel="noopener">see what the experts say</a> about creating a safe environment for children as they head back to a more “regular” routine. It may take a little getting used to but you and your child will get through the transition. You’ve got this.