Since you’re anxiously awaiting your income tax return, it’s time to start making plans for what you’ll do with it. You could spend it on a dream vacation but before you do, think hard. Chances are, luxury items will be far down your list of priorities.

Many people use their refund to pay down debt while others funnel their windfall into retirement and education funds such as Registered Retirement Savings Plans (RRSPs) and Registered Education Savings Plans (RESPs). Saving money isn’t as much fun as spending it but being debt free and secure in your retirement is an alternative that’s hard to beat.Pay down debt

If you are carrying too much debt, debt reduction might be your best option. Big balances on your credit lines and charge cards seriously erode your ability to build assets


Pay down a portion of your mortgage

If you own a home, a mortgage is probably your largest debt. Depending on how close you are to retirement, it could make sense to pay off your home loan instead of devoting the extra cash to retirement savings. But keep in mind there are penalties for early pay downs and if your interest rate is low, you might want to continue making payments


Contribute to an RRSP

The tax benefits of applying your refund to an RRSP are immediate. You receive a tax reduction and over the long term, any returns you earn on your investments are tax-deferred

An RRSP generates compound interest, meaning that what you invest today will be worth substantially more when you retire


Contribute to an RESP

Through the Canada Education Savings Grants, the government contributes up to $500 a year per child based on your contribution and family net income. The Grant has made tax refunds to RESPs more attractive. Assets are sheltered from taxation, similar to an RRSP.


Jennifer McCallum

Thank you so much for stopping by this page to get to know a bit more about me and why I started Parent Guide Inc. My business story started a way back in 2001... …after the birth of my first daughter, I realized that an "all-in-one" resource guide for parents was needed, and fast! I designed the New Parent Resource Guide to fill a gap in the community for busy parents like myself. The New Parent Resource Guide offers an A-Z of key contacts for parents, caregivers, service providers, and health care professionals.  Working with key businesses and organizations in the community, we have also compiled much-needed articles, tips, and charts to answer all your parenting questions. The latest addition to our family is the School Age Resource Guide to serve parents of children, 3 to 18 years!  This guide answers questions about: nutrition, bullying, curriculum, building self-esteem, and much more, as well as offering a full directory of local and national resources. The website offers an “all-in-one” spot for parents to connect, add their own blog, and find needed resources in their community.  It is a site that educates and entertains and if you can't find somthing just ASK me. I am here to serve YOU!  My hope is that you connect with our members, find comfort in their words, and share your own story. My goal is to see what I can do to help make life a bit easier for you.   You are why I do what I do! I can’t wait to get to know you!  Comment below to tell me about yourself – then start blogging so we can find out what makes you get up in the morning!  Check out my blog too and I am sure you will be surprised what gets me out of bed each day!!! Jennifer -  Mom and Publisher

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