How to Invest in Your Child’s Future

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Invest in Your Child's FutureChildren are the most important thing in the world. Parents understand this beyond a shadow of a doubt, but even those without children know this. Society understands that children are the future and will shape our world long after we’re gone. In a greater sense, we do everything we can to prepare them for that future.

Like it or not, finances are an integral part of our children’s future. While teaching them core values and making sure they understand right from wrong is critical, we also want to give them every advantage possible. That starts with proper investing knowledge. The more we’re able to understand the different ways we can invest in our child’s future — the better off they’ll be in the long-term.

You need to have a plan of action. There are several different ways you can start investing for your children. Some of them can be more complex than others and even downright challenging at times. To remedy that, we’re keeping things simple with some effective ways you can invest in your child’s future.


Opening a Registered Education Savings Plan (RESP) is one of the best investment strategies you can utilize for your child. It’s essentially a type of savings plan that helps you save for your child’s post-secondary education. This is crucial if you want your son or daughter to attend a college or university.

RESPs function through a pretty simple premise. The person responsible for opening the RESP is known as the subscriber, usually a parent or grandparent. They can contribute a lifetime maximum of up to $50,000 for the child who, if aged 17 or under, is known as the beneficiary. The federal government also uses grants and bonds to contribute to the RESP.

Savings Accounts

If you’re unsure about your child’s post-secondary intentions, you can still use an RESP and transfer the money into your own Registered Retirement Savings Plan (RRSP) after the beneficiary becomes an adult. That said, you can avoid this entirely by simply opening a savings account for your child. It’s essentially combining the core elements of different investment strategies with some personal financial planning sprinkled in.

Perhaps you want to save money to buy your child’s first car. Or you might want to help them buy their first apartment. School doesn’t have to be the be-all and end-all when you’re trying to ensure a bright future for your child. You can open up a standard savings account or, better yet, a Tax-Free Savings Account (TFSA). That way, you’re saving money for your child but also have the ability to write off the savings during tax season and have an emergency fund at the same time.


RESPs and savings accounts like a TFSA are some of the most common ways to save for your child’s future — but they aren’t necessarily the only ones.

There’s always the option of opening an informal trust account (also known as an ITF). An ITF saves money for a child’s future education, protection of inheritance, or even tax savings for the adult trustee. When the child reaches the age of majority, they can access the money to use as they see fit. It’s a less rigid way of saving for your child’s future that puts more power in their hands when they become adults.

Need help navigating investment strategies for your child’s future? Our advisors are always here to help and will give you all the tools you need to ensure your child has a bright future ahead. Contact us today.

Ocean Wealth