Families Can Get Almost $7,000 Via The Canada Child Benefit & Here's What You Can Spend It On

This year, the Canada Child Benefit (CCB) is getting a boost and eligible families will be able to get almost $7,000 towards the cost of raising children.

The increase was announced back in July, with Prime Minister Justin Trudeau confirming that qualifying families would be able to get more money from the feds to help with childcare costs for those under the age of 18.

The exact amount a family is eligible for varies depending on several factors, including their adjusted family net income (AFNI), their marital status, the number of children in their household and the children's ages.

For example, qualifying people with an AFNI under $32,797 can get the maximum amount in a year.

This works out as $6,997 per child under 6 ($583.08 per month), and $5,903 per child aged between 6 and 17 ($491.91 per month).

The payments start decreasing when a family's net income is over $32,797.

With the boost already in effect, some parents or caregivers may be wondering what exactly they can spend the CCB on.

While there are no specific rules when it comes to how the benefit should be spent, the feds say it should be used to "help with everyday expenses like school supplies, new clothes and after-school activities."

In July, Trudeau suggested the tax-free monthly payment could be spent on things like food, after-school activities, clothing and "whatever your growing family needs."

It could also be spent on things like supportive child care, learning tools, toys and games, sports equipment, books and shoes.

Essentially, it's up to an individual parent or carer to decide how best to spend the benefit to support their child or children.

For those who still have a little bit leftover after all their child's needs have been met, insurance company Canada Life suggests putting the money somewhere that would give a child "a financial head start."

For example, any additional CCB money could be used to contribute to a RESP, which could eventually help to cover the costs of a child's studies after they finish high school, whether that's at college, university, a trade school or an apprenticeship program.

"With the rising costs of education and everyday expenses, setting aside money for your child’s financial future could give them a welcome head start," Canada Life says.

As a bonus, the feds will help eligible people save more via the Canada education savings grant (CESG), which adds even more money to RESP contributions each year.

To qualify for the CCB, parents and primary caregivers can contact the CRA via mail or register via My Account online.

They must be living with and caring for a child who is younger than 18 years old and meet all other requirements per the eligibility criteria.

This article's cover image was used for illustrative purposes only.