We hear a lot about financial literacy these days as Ottawa promotes its efforts to educate Canadians about money management, saving and investing.  Clearly, the first steps begin with our kids, and not just in the classroom. Parents, grandparents, and other caregivers can provide some of the building blocks to economic maturity by sharing their own experiences with money.  Here are 3 ways you can help them understand basic financial concepts. Let them manage their own income.  It’s important for your kids to have their own money to manage – and mismanage.  They will learn a lesson (albeit painful sometimes) when they spend their entire allowance on an impulse purchase. Help them set goals and allocate their money.  Set goals for donating, savings and spending and give them separate piggybanks to allocate the chosen portion of the money they earn. Show them the power of compound growth.  Open a savings account, GIC or other ...

CLU Comment - May/Jun 2010   <-------- Click to open The CLU Comment is a publication distributed by CLU Institute®.  The most recent issue (May/June 2010) outlines what is taxable in the event your life insurance policy is “disposed of”.  Also there are recent proposals that may alter the way life insurance policies are valued when donated to a charity.  Both of these topics and more are discussed in this issue.  If you have questions or comments about the material provided, please call our office.  We look forward to speaking with you soon.  Background Information: DISPOSITION OF A LIFE INSURANCE POLICY Income Tax Act references: Subsection 148(1) – amounts included in computing policyholder’s income [on disposition of a life insurance policy] Section 54 and subparagraph 39(1)(a)(iii) – [exclusion of a life policy (other than a segregated fund contract) from the definition of capital property] Paragraph 56(1)(j) – life insurance policy proceeds [inclusion in regular income] Subsection 148(4)– income from ...