Question: I want to start building a financial plan for my 7-year-old daughter. Which of the following options would be beneficial in Canada?
1. open a checking account
2. open a savings account
3. start an RESP
4. apply for a credit card
5. add as an authorized user on my credit card
6. open a TFSA for her
7. take out a whole life policy
Answer: Opening a checking account for your 7-year-old daughter is not necessary at this time, as she is too young to handle the responsibilities that come with it. Opening a savings account for your daughter is a good idea, as it will help her learn about saving money and managing her finances. Starting a Registered Education Savings Plan (RESP) for your daughter is also a good idea, as it will help her save for her post-secondary education. Applying for a credit card for your 7-year-old daughter is not appropriate, as she is too young to have a credit history or to handle the responsibilities that come with having a credit card. Adding your daughter as an authorized user on your credit card is also not appropriate, as she is too young to understand the implications of using credit. Opening a Tax-Free Savings Account (TFSA) for your daughter is a good idea, as it will allow her to save money in a tax-advantaged way. Taking out a whole life insurance policy for your 7-year-old daughter is not necessary at this time, as she is too young to need life insurance. It is always a good idea to consult a financial advisor to ensure you are making the best decisions for your child's financial future.
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