Family savings: simple strategies to build your children’s future
Saving for your family is easier said than done. Between day-to-day expenses, the temptation of exciting projects and the need to plan for the future, it’s not easy to find the right balance.
How much should you set aside? Will it be enough? And above all, how do you make every dollar count? Here are a few practical tips to get you off to a good start.
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Why save when you have a family?
Family savings help you secure your future, cope with the unexpected and carry out your life projects. More specifically, saving enables you to build up an emergency fund, finance your children’s education, buy a house or prepare for retirement. What’s more, having savings considerably reduces financial stress.
But even when you manage to put money aside, it can be hard to know if it’s enough to cover the unexpected and ensure a sunny future for your children. Is this something you worry about? Are you adjusting your calculations to see how you can better manage your budget? That’s normal. Nearly 74% of Canadians are in the same situation and worry they are not saving enough [in French].1
Although different experts may suggest different savings strategies, all agree on one thing: the important thing is to get started.
The 6 main reasons to save
Saving is one of the best ways to protect and grow your family. It helps you meet a number of essential needs, both for everyday life and for the future:
- Prepare for the unexpected: divorce, health problems, job loss... Your household income could decrease drastically without warning.
- Finance a project: whether you’re planning a trip or an in-ground swimming pool, saving allows you to enjoy family life to the fullest.
- Plan for children’s education: saving now can help lighten the impact of post-secondary education later and give your children more options.
- Reduce financial stress: financial uncertainty can impact your work, your relationships, as well as your physical and mental health.
- Secure your retirement: saving early lets you generate more interest and build a larger nest egg.
- Build wealth: saving also helps support your children in their future projects.
Start saving in 4 easy steps
Setting up a savings plan starts with a clear definition of your financial objectives, shared with all members of your household. Because everything is easier when you and your partner share the same priorities!
Step 1: Draw up a family budget
Take stock of your income and expenses and determine how much you can put aside each month. Adjust your budget regularly to keep a realistic view of your savings capacity.
Need a helping hand? Read our article to find out how to draw up a family budget.
Step 2: Set realistic, measurable savings goals (SMART)
Aiming to “save more” is not exactly useful... All you have to do is go from $0 to $1, and voilà, you’ve reached your goal! But if you say, “We’re going to save $5,000 for a family trip next winter,” that’s more like it!
To be effective, your financial objectives must be SMART: specific, measurable, attainable, relevant and time-bound.
Step 3: Determine savings priorities
Family savings goals should be broken down into different time horizons to help you better plan how much to invest:
- Short-term savings (e.g., to create an emergency fund);
- Medium-term savings (e.g., to buy a car, undertake a renovation project);
- Long-term savings (e.g., for children’s education, retirement).
Step 4: Get the whole family involved
Building a savings plan is a team effort. Maybe you're dreaming of a trip down south, but your partner wants to update the kitchen? You need to talk about these discrepancies. And what about the children? It’s never too early to teach them how to manage their finances.
How much do you need to save each month to ensure your children’s future?
A popular budgeting method is to follow the 50/30/20 model: spend 50% of income on necessities (rent, electricity, telephone, Internet, etc.), 30% on leisure (restaurants, extracurricular activities, etc.) and 20% on savings.
In practice, this is not always easy. Single parenthood, illness, job loss: sometimes saving can seem out of reach. The most important thing? Regularity. Choose a realistic, budget-friendly amount that you can set aside without putting more financial pressure on your household. You can re-evaluate this amount when you get a promotion at work or finish paying off your car loan, for example.
How to save on a small budget: top tips
Saving is possible, even on a small budget. Here are a few simple tips to get you there:
- Set up an automatic transfer to your savings account.
- Monitor your budget regularly.
- Find additional sources of income (e.g., sell items you no longer use).
- Cut expenses by taking advantage of flyer discounts, bringing your lunch or coffee to work, or planning meals before you go to the grocery store.
- Opt for savings accounts that make your money grow, such as RESPs, RRSPs and TFSAs.
Savings accounts available to Quebec families
The most popular savings accounts in Quebec are the Registered Education Savings Plan (RESP), the Registered Retirement Savings Plan (RRSP) and the Tax-Free Savings Account (TFSA). Each offers several advantages, but the right choice for your family depends on your savings goals.
| Account type | Why use it | Benefits | Considerations |
|---|---|---|---|
| RESP | Children’s education. | Between 30% and 60%2 in government grants available. Tax-sheltered growth. Withdrawal of contributions is not taxable. |
Contributions are not tax-deductible. Withdrawal of accumulated interest and grants is taxable for the beneficiary.3 |
| RRSP | Retirement. | Tax reduction on contributions. Tax-sheltered growth. |
Withdrawals are taxable. |
| TFSA | Any medium- or long-term project. Family emergency fund. |
Flexible, tax-free withdrawals. Tax-sheltered growth. |
Contributions are not tax-deductible. |
Still not sure? Here’s how to decide which account to choose based on your family’s plans.
RESPs: the best way to save for your children’s education
The Quebec and Canadian governments offer excellent savings tools for families. Among them, the RESP was designed specifically to help parents finance their children’s post-secondary education.
The RESP lets your savings grow tax-free, while benefiting from government grants of 30% to 60%.2
Take action!
Open your RESP online now or make an appointment with an education savings advisor to help you get started.
Saving solutions for every reality
Saving helps you cope with the unexpected and reduce financial stress, while ensuring a sunny future for your family. And the good news is that it’s within everyone’s reach!
Whatever your goals and financial situation, there’s always a savings plan to help you realize your plans or cope with life’s ups and downs. The most important thing is not to put off your savings plans until tomorrow. Every little step counts, and it’s often the first one that makes all the difference!
Frequently asked questions
According to the 50/30/20 budgeting method, around 20% of income is devoted to savings. This percentage includes retirement, children’s education, an emergency fund and various projects. To maximize the annual grants offered with an RESP, you should invest about $208 per month. The most important thing, however, is consistency. Even $25 or $50 a month invested in an RESP can, over time, make a difference.
RESPs and TFSAs are two savings accounts that can help your investment grow tax-free. RESPs are designed to finance children’s education and provide access to government grants. The TFSA does not offer grants, but the withdrawal terms are very flexible, making it suitable for a variety of projects.
Read our article to better understand the differences between these accounts.
The important thing to remember when starting to save is to build up your savings gradually, with a focus on regularity. Don’t forget that time is your ally, and by starting sooner, you’re giving those small amounts more time to grow. There are also simple strategies for saving money on a day-to-day basis, such as automating transfers, looking for additional income sources and cutting back on unnecessary expenses.
The best account for an emergency fund is one that will allow you to access your money quickly, without penalty, while making it grow, such as a high-interest savings account, which may or may not be opened through a TFSA.
1. Gagnon, Jean (May 11, 2025). “Combien épargne-t-on? Mais surtout, est-ce suffisant?”, La Presse.
2. Canada Education Savings Grant (CESG) of 20% to 40%, and Quebec Education Savings Incentive (QESI) of 10% to 20%, based on adjusted family net income. Certain conditions apply. Refer to the prospectus at Kaleido.ca.
3. Grants and investment income—called Educational Assistance Payments (EAPs)—are taxable for the beneficiary in the year they are withdrawn, based on the beneficiary’s tax rate.
