Top 9 Financial Tips for Moms
What mothers of young families need is something compelling, engaging, and time efficient to make their financial affairs a priority. And could you make it a bit fun, too, they ask?
That why Golden Girl Finance (always fresh, fun, and modern) has written their Top 9 Financial Tips for Moms.
Drum roll, please…
1. Show me the money! ‘ Universal Child Care Benefit (UCCB)
This benefit pays $100 per month, per child, under the age of six. The aim is to help with childcare costs but the payments can be used for any expenses. Every family can receive this benefit no matter the family income, but the parent with the lower income must claim it for tax purposes.
2. Money for nothing and the education is free (well sort of) ‘ RESPs
An RESP is a government approved program to encourage saving for the purpose of post-secondary education. Talk to your advisor about it while your kids are still young.
3. Not so taxing – Tax Free Savings Account (TFSA)
You don’t need to be a mom to take advantage of this registered all-purpose savings account. It is included because it allows you to earn TAX-FREE investment income to fund lifetime savings goals, such as retirement or education savings. Annual maximum contribution limit is $5,000. All income and capital gains earned within the account are, say it again, TAX-FREE!
4. But I’m the boss…of ME
In 2010, the government introduced the Fairness for the Self-Employed Act. Previously, self-employed Canadians were not eligible for maternity or parental leave benefits. With an estimated 900,000 self-employed women in Canada, this was clearly an important issue. Under the new legislation, self-employed Canadians can now receive similar benefits to other employed Canadians if they opt into the program at least one year prior to claiming benefits and are responsible for making premium payments starting with the tax year in which they opt in to the program.
5. Protect those (ass)ets girl! ‘ Review your Insurance
- Critical Illness
6. Where there’s a will…there’s a way
- Appointing an executor
- Appointing a guardian for your children
- Setting up a testamentary trust
7. Fit for a tax credit – Children’s Fitness Tax Credit
The government provides a non-refundable tax credit against the payment of programs that provide physical fitness benefits for children under the age of 16.
8. Not only are they Divine & Delightful…they’re Deductible!
If both parents work outside of the home, the parent with the lower income can deduct child-care costs on their tax return. For children under the age of seven, you can claim up to $7,000 per child, per year, for childcare expenses (so if you have three very young kids, for example, you can claim up to $21,000 in childcare expenses’about the cost of a full-time nanny). For every child between the ages of eight and 16, you can claim up to $4,000 per child, per year, for childcare expenses. You can also make childcare deductions if you decide to go back to school.
9. Don’t forget about the golden years!
Raising a family is expensive. While most moms are focused on saving for their children’s education and making sure their kids have the best of everything, don’t forget about you. While your children can borrow for their education, you cannot borrow for your retirement.