How to set your grandchildren up for financial success

by | Nov 7, 2023 | Finance and Business

Many of us enjoy the opportunity to buy baby gifts, yet the cost of that cute outfit, teething toy or set of stacking blocks is surprisingly high for its relatively short period of use. Finding something that will make a difference for years to come can feel elusive.

The best gifts are often useful, unique, thoughtful and practical. For many parents and grandparents, the rising costs of education, housing and overall living are raising concerns about their children’s (or grandchildren’s) ability to be financially secure in the future. Here are two gift ideas that will be sure to have a lasting impact on their lives.

Fund their future: Many parents are already contributing to a Registered Education Savings Plan for their children, making tax-free, annual payments towards their future education costs. You could help top up this educational fund for a benefit that will make a big difference in the future. Other savings vehicles include in-trust or bank accounts in your child’s name and Tax-Free Savings Accounts.

Provide lifelong support: Many people aren’t aware that whole life insurance can help at key milestones in a person’s life before they pass away, including the ability to access cash for a down payment on a home, for education costs or for a supplement to their income in retirement. That accessible cash grows as you pay the premiums. As policies can be paid off within 10 or 20 years, the children in your life receive financial benefits at no additional cost to them.

Find more information about whole life insurance at rbcinsurance.com/wholelife

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