The Canada Child Benefit Explained

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Hey everyone, Bridget from Money After
Graduation here to talk to you about the Canada Child Benefit. If you’re a new
parent or you’re expecting a little one on the way, you probably have lots of
questions about what the Canada Child Benefit is, whether or not you’re
eligible for it, and what you can spend it on. I’m going to cover all of those in
this video, but before we get started I want to invite you to subscribe to my
channel if you want more personal finance advice on parenting or saving or
investing in the stock market, because I do all of that here. Let’s get started!
The Canada Child Benefit is a monthly payment made by the Government of Canada
to Canadian families that have children, to help with general child-rearing costs.
When you have a child and register their birth — often the hospital or your Midwife
will do this for you — you’re going to be automatically assessed for the Canada
Child Benefit. If the CRA has your information online because you regularly
file your taxes, they’ll either direct deposit the Canada Child Benefit
directly into your bank account the same way they do your income tax refund. Or
if you normally receive those payments by cheque, they’ll just mail you a cheque.
The Canada Child Benefit is income dependent, but most families that are
earning less than $150,000 to $200,000 per year are going to see at
least some money. Later in this video I’ll go into how you can actually lower
your net household income to qualify for more of the Canada Child Benefit. The
Canada Child Benefit or CCB is a completely tax-free disbursement. The
Government of Canada will just deposit the money in your account and you don’t
have to do anything else. This is much different from the EI that you may have
received for maternity or parental leave that was taxed. The CCB is not going to be taxed. The amount you receive is the amount that you get, so that’s really
awesome and makes it much easier to budget and plan with. Families can
receive up to $6,639 per child under the age of six and up to $5,602 for children aged 6 to 17. These are big amounts! The first, the $6,639 actually works out to $553 per month and the $5,602 actually comes out to $467 per month. And remember that’s per child. If you have more than one child, they’re all
eligible for the Canada Child Benefit. I find the disbursement
usually arrives in my bank account around the 20th of every month. Sometimes it’s a few days earlier than that but it’s never later than that. It just
depends on whether the 20th falls on a weekend or not. Because how much CCB you’re going to receive depends on both your net household income and how many children you have, it’s not really easy in this video to
tell you the amount that you’ll be getting. But in the description below,
I’ll link both the Canada Revenue Agency website that explains more about what
the CCB is, as well as I’ll link a calculator that you can put in your
household income numbers and calculate how much CCB you’ll be getting per child.
So in Canada this is awesome help for a lone parent families because it can
really make a difference. I mean those CCB payments can be substantial
depending on what your net household income is. And because you’re allowed to
use this money for anything it really helps families that may be living in a
cash crunch, especially with small children. Now I mentioned earlier that
there is a way to lower your net household income in order to receive
more CCB, and the great thing about this is it involves just saving more money. If
you’re a mid to high income household and your total household income is
really reducing how much CCB you are eligible for, one thing you can do is
contribute to your RRSPs to lower your net household income. Then you’ll be
eligible for more CCB. This is different than some other grants and benefits that
are doled out by the Canadian or provincial governments so it’s a really
lucky one because you can manipulate it a little bit to get a few extra dollars
each month. If you don’t yet have an RSP, I have plenty of videos on why they’re
great and you need to get one and how to open one. Which brings me to my next
topic of what can you spend the CCB on? The good news is it’s totally up to you.
Having a child is super expensive. It increases your monthly living cost by
like so much. So much money, especially daycare. But you can use the CCB to help
with those expenses. Some of the best ways to use the CCB is to use it towards
childcare expenses. Daycare is ludicrously expensive and if you get at
least a portion of that covered by the CCB, it definitely makes it an easier
burden to bear. This is something you should definitely consider if you’re
kind of having the debate of whether you should go back to work or
stay home with your children. Don’t forget to factor the CCB that you’ll
receive into your mathematical calculations. If you’re going to receive
a certain amount monthly that can help with your daycare fees, that probably
makes it a little bit easier to afford so you can get back to work.
Alternatively, if you’re a stay-at-home parent the CCB is a nice way to bring a
little bit extra money in your household if only one parent is working. Another
great use of the CCB is to put it in your child’s RESP. The RESP is the
Registered Education Savings Plan and it’s another savings account created by
the Government of Canada to help you save and invest for your child’s
post-secondary education. I have a video on the RESP which I’ll link right here
so you can check it out, but in the RESP you can also receive free grants more
free money from the Government of Canada when you make contributions. Daycare and RESP aside, you can still use the CCB to accommodate other household expenses. When I had a child, I had to move from a one-bedroom to a two-bedroom apartment,
so those costs increased for me. Likewise, I went from not owning a vehicle to
getting a car with a car seat so I could take my child everywhere. These are just
increased costs that come with having a child and you can use the CCB to help
pay for them because you’re allowed to spend that money however you want. I
really think the Canada Child Benefit is an awesome boost to Canadian families. I
know a lot of the data actually shows that it has lifted literally hundreds of
thousands of children out of poverty by helping their parents so much. I hope you
guys enjoyed this video and it explained a lot about the CCB for you. If you did,
please give it a like and leave a comment below letting me know what
you’re spending your CCB payment on for your child! I’ll see you guys next week.

5 COMMENTS

  1. Thanks for outlining the benefits of our Canadian government. We forget sometimes how good we have it. I live abroad and really don't see much of this type of government support in other parts of the world.

  2. It's just crazy how when you make a higher Income or live in a dual income household how little support you get from the government. Just because you have a higher income it doesnt make it less expensive to raise your children. Espisahlly when you factor in how much income tax you pay.

  3. The PIMP HER NET on Google has interfered with our Freedom of speech because its Political & not Porno .
    We don't Exploit Women and Children For Google , Twitter , Facebook , etc, to profiteer off of .
    we waste their bandwidth saying crazy true shit like this and none of them like it .

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