A Beautiful Gift for Every Grandchild

Two Lasting Ways Grandparents Can Build a Legacy of Love

A grandchild, whether they are a newborn, a toddler, or already in school, is one of life’s greatest joys. Grandparents often wonder: What is something meaningful we can set up now that will truly help them later?

There are two powerful, long-lasting gifts that can grow with a child throughout their life:

 

1. A RESP – Education Support That Grows with Them

A Registered Education Savings Plan (RESP) helps build a foundation for future education: university, college, trades, apprenticeships, part-time studies, and more.

  • Government support: The government adds 20% to contributions each year (up to $500 annually and $7,200 total per child).

  • Tax-deferred growth: Money grows tax-deferred, meaning more of it compounds over time.

  • Student tax advantage: When withdrawn for school, income is taxed in the student’s hands, often at a very low or even zero rate.

  • Flexible use: Funds can be used for tuition, housing, books, tools, transportation, and other eligible expenses.

Grandparents can help by:

  • Opening an RESP directly

  • Contributing to the parents’ existing plan

  • Making birthday or holiday gifts into education deposits

This is a gift that says, "Your future matters to us."

 2. A Permanent Life Insurance Policy – A Gift They Will Thank You for Later

Another powerful option is purchasing a Whole Life or Permanent Life Insurance policy for your grandchild. While this may surprise some families, it is one of the most valuable long-term gifts a grandparent can give.

  • Low premiums for young children: Premiums are very affordable when a child is young.

  • Builds cash value: The policy builds cash value over time, which your grandchild can later use for:

    • Buying a first home

    • Education costs

    • Starting a business

    • Emergency funds

    • Retirement savings

  • Lifelong coverage: Coverage lasts their entire life, not just a temporary term.

  • Transferable ownership: When they become an adult, ownership can be transferred to them as a meaningful milestone or family legacy.

It is a financial head start that stays with them forever.

 

Why These Gifts Matter

As grandparents, you have already given love, wisdom, and memories. These two financial gifts are simply another way of saying: We believed in you from the very beginning.

RESPs help remove financial barriers to education. Permanent life insurance provides lifelong security and future financial flexibility.

Together, they allow a child at any age to start adulthood with more opportunity and less financial stress. That is one of the greatest gifts a family can offer.

 

Ready to Begin?

If you would like to explore either option or review what makes sense for your family, we are here to help. Whether it’s a small monthly contribution or a special gift for a birthday, graduation, or holiday, every little bit grows into something meaningful.

Contact SilverBirch Wealth Management today to start building a legacy of love.

 
 

National Bank Financial - Wealth Management (NBFWM) is a division of National Bank Financial Inc. (NBF), as well as a trademark owned by National Bank of Canada (NBC) that is used under license by NBF. NBF is a member of the Canadian Investment Regulatory Organization (CIRO) and the Canadian Investor Protection Fund (CIPF), and is a wholly-owned subsidiary of NBC, a public company listed on the Toronto Stock Exchange (TSX:NA).

The information contained herein has been prepared by Vanessa Benedict, a Wealth Advisor at NBF. The opinions expressed do not necessarily reflect those of NBF.

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