The holiday season is approaching, so why not give a gift with real value for your children or grandchildren’s future this year? Instead of filling the house with short-lived toys, consider sustainable financial solutions to support them throughout their lives. Here are three original and visionary gift ideas: the Registered Education Savings Plan (RESP), the Tax-Free First Home Savings Account (FHSA), and Participating Whole Life Insurance. These options combine generosity and foresight, offering financial security and support for the future.
1. An RESP: Prepare for their educational journey
The Registered Education Savings Plan (RESP) is a powerful tool for funding post-secondary education. Designed to help parents and guardians save for tuition, books, and other education-related costs, the RESP also allows contributions to grow tax-free over time. Moreover, the government enhances the value of your gift by providing matching grants through the Canada Education Savings Grant (CESG) program, which can add up to $7,200 per beneficiary. With an RESP, you’re not just saving for school—you’re empowering your child or grandchild to achieve their academic and professional goals, free of financial barriers.
2. An FHSA: Make their first home a reality
The Tax-Free First Home Savings Account (FHSA) is a promising new option that helps young Canadians save for one of life’s most significant milestones: purchasing their first home. This account is available to individuals aged 18 and older who are Canadian residents and have not owned a home in the current year or the previous four calendar years. Combining the tax-deductible contributions of an RRSP with the tax-free withdrawals of a TFSA, the FHSA is tailored to make homeownership more accessible.
Contributions can only be made by the account holder, but family members, such as parents or grandparents, can provide the funds as a gift. Eligible individuals can contribute up to $8,000 annually, with alife time maximum of $40,000. By supporting your child or grandchild in opening and funding an FHSA, you’re giving them a head start in realizing their dream of becoming homeowners without the burden of additional debt.
3. Participating whole life insurance: A legacy for life
Participating in Whole Life Insurance is a unique financial gift that provides much more than lifelong coverage. It builds cash value over time, which grows tax-sheltered and can be accessed in the future for education, a home purchase, or even starting a business. Additionally ,participating policies often pay annual dividends, increasing the policy’s value. This gift is a financial safety net and an investment in your child or grandchild’s economic independence. By gifting Participating Whole Life Insurance, you’re ensuring their security while leaving them with a tangible asset they can rely on for generations.
Conclusion: A gift that spans generations
This year, choose gifts that last far beyond the holiday season. By offering an RESP, an FHSA, or Participating Whole Life Insurance, you show your children or grandchildren how much their future matters to you. These thoughtful and forward-looking gestures will become solid foundations to support them at every stage of life.
Ready to give a gift that truly makes a difference? Contact me today to explore these options and plan for your loved ones’ future. Together, let’s make this holiday season unforgettable!