Newborns and the New Year
According to BC Government News, the first child born in BC was delivered at 12:02 Sunday morning at Abbotsford Regional Hospital to parents Arben Camayan and Thea Villaneuva..
Little Gabriella Louise V. Camayang weighed 5 pounds, 10 ounces (2.5 kilograms) at the time of her arrival.
A baby boy was born in Nanaimo Regional Hospital not long after. He was delivered at 12:15 and weighed 7 pounds, 10 ounces (3.45 kilograms).
What are the Odds?
BC gamblers can’t place bets on the sex or size of the babies, but they can place bets on which hospital will deliver the first New Year’s Baby through the BC Lottery Corporation. There were twenty-three potential hospitals from which to choose. Players could win $10 for every $1 wagered if they guess correctly.
The odds-on favourite was B.C. Women’s Hospital in Vancouver at 3.50. Surrey Memorial Hospital was pegged at 5.00. Royal Columbian Hospital in New Westminster, which had the province’s first baby in 2019 and 2020, marked in at 8.00.
Cowichan District Hospital and St. Joseph’s in Comox were presented the worst odds, at 50.00. while Nanaimo was at 31.00.
A Better Betting Outcome
IF they really wish to win big, parents and grandparents should consider starting an RESP for newborns or at least as early as possible. Newborn’s accounts can benefit from time, grants, compounding and future opportunities.
Here’s how it works…
For every dollar a parent contributes to an RESP, the federal government will kick in another 20 cents through the Canada Education Savings Grant (CESG). Each $1.00 contributed quickly becomes $1.20 working and growing towards your child’s education goal.
Further, between the ages of 6-9, the BC Government will make a one-time contribution of $1,000 through the BC Training and Education Savings Grant (BCTESG).
And, for households with less than $50,000 /year of income, the Federal Government will add an additional $500 through the Canada Learning Bond (CLB) and subsequent grants based on need.
There are some limits. The CESG maxes out at $500 per year and $7,200 per child per lifetime, but that means contributing $2,500 /year or $36,000 before the beneficiary turns 17.
Parents and/or grandparents allotting $1,000 early and contributing $100/month for eighteen years will see those funds grow to: $43,000.00 – assuming a 6% compounded growth rate or $50,000.00 assuming an 8% compounded annual rate of return.
For parents and grandparents wanting to invest in their newborn’s future, there are two steps needing to be taken. First, parents will need to find an advisor or a financial institution that offers RESPs. Second, parents will need to apply for a Social Insurance Number for their infant (required for when the student withdraws funds from the account). Click here: https://www.canada.ca/en/employment-social-development/services/sin/apply.html
Betting on your child’s future is one of the best bets a person can make.