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Financial Sense/ Money Matters

Get a SIN number for your baby (if you live in Canada).

I know, it sounds silly. Why should my baby get a social insurance number when they won’t be working for a long time? I understand. I didn’t get mine until I was 16 and decided I wanted a part time job (in fact I got it behind my mother back…but that’s another story!).

Well there are two good reasons to get it when they are born: RESPs and income taxes.

Firstly, you will want to set up AMD RESP for your child as soon as possible. University tuition costs are constantly rising and the earlier you start saving the better.  To help out with this, if your baby has a SIN number you can set up a registered education savings plan that the government will match your contributions dollar for dollar (up to a certain amount). We use the baby bonus, since that’s kinda like “found money”. So we use government money and then they match it again! Plus you get the interest on the account as well.

Secondly, income tax. If you have a child under the age of six you should be receiving the universal child tax benefit (aka. Baby bonus) every month. This will add an extra $1200 of income on your earnings come tax time. Well, if your child has a SIN number they can claim it as their income! So you don’t get stuck having to pay extra income tax. $1200 may not seem like a lot but for me this year it made the difference of a $400 refund or an $800 refund (and that’s just for one kid)!

As every parent knows, families are expensive, so be smart and take all the help you can get. 🙂


About Shannon

I am a university educated full-time working mother of four children. Proudly Canadian, I freeze my butt off along with my loving partner, two dogs and a cat. I hope you enjoy reading my posts as much as I love writing them, but if you have nothing nice to say, don't say anything at all.



  1. Pingback: A Happy Relationship Means Having Your Own Bank Account | A Game of Diapers - January 28, 2014

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