How to juggle RRSPs, TFSAs, RESPs and a mortgage + MORE Apr 6th

Why families need to start preparing for next year’s tax season, now

The Liberal government unveiled its budget and, as presented, it seems to eliminate more credits, than it introduces.

First, the Family Tax Cut will be eliminated for 2016. It allowed couples with at least one child under the age of 18 to claim a non-refundable tax credit of up to $2,000 based on the tax savings that would be realized by splitting income between spouses.

Second, the Children’s Fitness Credit and Arts Amount will be eliminated over a two-year period. This means that families can take advantage of the credits on their 2016 returns but at reduced amounts. The Children’s Fitness Credit will remain refundable and be reduced from $1,000 to $500, with a resulting tax savings of only $75 per child. The Children’s Arts Amount will be reduced from $500 to $250 and give filers a tax savings of $37.50 per child. In 2017, however, these programs, along with the supplemental amount for children eligible for the disability tax credit, will be removed from tax returns…

Major supermarkets are selling bruised, misshapen fruits and vegetables for discounted prices to cut down on food waste. But is ugly produce worth the savings?

It’s funny how having a few kids can upend even the best laid financial plans. That’s precisely what Sammu and Mandy Dhaliwall are discovering as they deal with the competing challenges of raising children and still finding a way to pay off the mortgage and save for the future. It’s a juggling act all parents must eventually contend with, and for the Dhaliwalls that reality set in about three years ago.
Back in 2013, the young couple realized their suburban Toronto home needed a major basement reno to create more play space for their growing brood, which now includes a five-year-old daughter and two-year-old twins. To do that, they ran up a hefty bill on their line of credit (LOC)—of which $90,000 remains, not to mention the $350,000 still left on the mortgage. “We made a key decision to stay put and make do with the three-bedroom home we had already bought,” says Sammu, 37, who works as a pharmacist. “We’re close to family here and they’re our support network.”
To whittle away at their debt, the couple pays $10,000 annually to their LOC while making the minimum monthly payment on their mortgage along with an annual lump-sum payment of $12,000…

Learn whether getting pet insurance is for you or whether you should open up a doggy or kitty savings account.