Savings of $90K with plan for people with disabilities
Three quarters of those who can get Registered Disability Savings Plan don’t have one
If this plan isn’t for you, it could be for someone you know. It’s called the Registered Disability Savings Plan (RDSP) and it allows people with disabilities and their families to save for the future, tax-free — similar to an RRSP.
With up to $70,000 available in government grants matching your contributions, and an additional lifetime bond of up to $20,000 for lower-income households, the RDSP can make a huge financial difference for disabled individuals.
The RDSP is only for those with serious and ongoing physical or mental impairments. Parents can set up RDSPs for their disabled children, or disabled adults can set up plans for themselves.
The problem is that the RDSP is reaching few Canadians.
In 2015, only 24.3 per cent of people who were eligible had a RDSP, says a recent report titled “Breaking Down Barriers” by the Senate’s Standing Committee on Social Affairs, Science and Technology.
Because eligibility is tied to qualifying for the Disability Tax Credit (DTC), which in itself is a complicated process, the committee found fewer than 40 per cent of the more-than 1.8 million people with a qualifying disability claim the DTC.
Rachelle Berube is the parent of a 10-year-old son with autism.
After qualifying for both the DCT and RDSP this year, she suggests parents document the particulars of their child’s medical condition, leaving nothing out, including how they function at school.
As well, she says it’s helpful for parents to include how their child’s disability has affected their own lives.
“We don’t want to think our kids are going to have problems in life — but that everything is going to work out, which it might. Money helps,” Berube says.
Since no bond or grant should go unclaimed, I’ll walk you through the steps and share resources you’ll need to get the money.
One of my pet peeves is buying something and then finding out it’s priced cheaper elsewhere. For example, I bought delicious cherries twice last week. The first store charged $6.99 per pound, while the second store charged $1.99 per pound. Because I was rushing, I didn’t price-compare online beforehand, and thus, I paid way more on Monday versus Thursday for the same darn cherries. Frugal fail. The average Canadian spends roughly $200 a month per person on groceries and food prices are expected to rise up to 3 per cent in the next year, according to the annual Canada’s Food Price Report. Fear not; shopping online can cut your bill by 15 to 25 per cent — and you’ll save loads of time. Better browsing In many cases, online shopping allows you to browse for the best prices from different vendors, rather than being stuck in one store having to buy what you need at whatever the price. When buying produce, you’ll want to choose a retailer that delivers within 24 hours so that your produce isn’t rotten by the time it gets to you. Fewer pressures Online grocery shopping has other added benefits, such as keeping you better organized. You can keep a list and plan exactly what you need and buy just those items. Stuck for reci- pes? Check out menu-planning and recipe apps such as CookSmarts and Pepperplate. Other sites such as the PC Optimum members program or Amazon will keep a record of what you’ve previously purchased so that you can click for a replacement.
Online shopping also helps with impulse control. If you’re not in the store, you’re not tempted by things you don’t need. And, because kids are very influential (and expensive) when buying groceries, shopping online is a great way to “leave your kids at home.” Use technology to help I use couponing apps such as Flipp. They aggregate the best coupons and prices for all retailers. I also scan for deals online using Google. Doing a deal scan is extra important if you have dietary restrictions. You can almost always find coupons for pricier gluten-free, organic or “green” products.
While there’s a net benefit overall, shopping online isn’t always flawless.
First, depending on where you order from, shipping can take a few days, but this will force you to pre-plan for what you need. Online shopping for groceries can free you up from your kids’ influences — and demands.
Second, if you choose to pick up your order at a store, your personal shopper might not be as picky as you would be when selecting fresh produce. But give the store feedback and they’ll refund anything you don’t like.
As you can probably tell from some of my recent columns, I’m on a mission to digitize my finances with the goal of saving time and money. Shopping online for my groceries is yet another way I’m tackling that goal. Lesley-Anne Scorgie is a personal finance author and founder of MeVest.ca