Money & Finances
Grandparent Giving
Financial help that can make a difference
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aising children now is much different than times in the past. Many families require two incomes along with an income suite just to get by. Real estate prices have been a driver of these changes but there are many other costs that have followed
loan, of a down payment to reduce the financial stress load. This is an amazing and generous offering that allows families to become homeowners. However, there are many grandparents who are not in the position to bestow such a gift who still want to help.
Save for Education
The responsibility to save for postsecondary education weighs heavily on parents. While children are allowed to have more than one Registered Education Savings Plan (RESP) open at a time, this option adds additional confusion around grants and bonds especially during the withdrawal period. You could encourage the parents to open the account as soon as possible and remind them that the BC government currently offers an additional $1200 grant if applied for between the ages of 6 and 9. Monthly, annual, or one-time contributions can be sent to the parents with the understanding that these funds will be deposited into the RESP.
Lindsay Plumb is a financial coach and founder of MOOLA Financial. Download her free budget template at pretty moneyclub.com.
12 Grand
closely behind. It is not uncommon for groceries to add up to over $1000 each month, childcare costs are often $900 or more per child and gas has risen to several hundreds of dollars just to get to work and back. This current reality means that when families are discussing their finances, it can be a stressful situation with feelings of overwhelm, regret and hopelessness. There is no wonder why money has become the number one stressor and cause of marital breakdowns. We have seen an increase in grandparents helping parents with a gift, or
Help with Extracurriculars
Playing multiple sports along with learning an instrument and swimming all in the same season is common these days. This comes along with significant costs, often into the thousands of dollars, for each child every year. When grandparents offer to pay for a class or summer camp they not only help with the parents’ budgeting they also provide a skill your grandchild will cherish into their adult years.
Invest for the Future
Teaching the next generation to invest in their future allows them to
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