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Financial Sense/ Money Matters, Twins/Toddler Tuesday

Twin Tuesday: Does Your Baby Have a Social Insurance Number Yet?

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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 an RESP for your child as soon as possible. University tuition costs are constantly rising and the earlier you start saving the better.Β  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. πŸ™‚


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.


11 thoughts on “Twin Tuesday: Does Your Baby Have a Social Insurance Number Yet?

  1. I didn’t know that about the Universal child tax credit. I wonder how that has been affecting my return. I had decided to wait to get the kids their SIN’s but maybe I should rethink that!

    Posted by lynnc2010 | July 23, 2013, 11:31 am
  2. Our social security numbers (I believe this is equivalent to what you are discussing) are issued at birth if you deliver at a hospital, they do everything for you and the card comes in the mail in like 2 weeks.

    Posted by Heather C | July 23, 2013, 12:30 pm
  3. Haha! We use the government checks too for our son! It just made sense to use the extra money for that. My son already has his SIN; at the hospital, part of the paperwork that we had to fill out before checking out included a form to request the social security number.

    Posted by mommytrainingwheels | July 23, 2013, 12:55 pm
  4. Hi!! I nominated you for the Liebster Award, because I love your blog! For more info click: Congrats!!!

    Posted by McCrazy Daily Lessons | July 23, 2013, 7:31 pm
  5. That $1200 income would be a great way to start a college fund, or to invest on behalf of the kiddo! We get tax breaks for having kids but it all comes in one lump some on your yearly tax return (I guess a return if you’re lucky), we made a point of putting that return in a bank account for the boys but I wonder how many people do.

    Posted by nebrtwin | July 24, 2013, 2:23 am
    • Good for you. According to my banker, not a lot of people think about it until their kids are older and they miss out on some prime savings and interest time. So I thought I’d write the post to help educate people about their options (at least if the live in Canada).

      Posted by Shannon | July 24, 2013, 2:25 am

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