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Having a Baby
A new baby comes with a lot of joy and excitement, new experiences ... and new expenses. From navigating what you need to buy to budgeting for childcare or extended time off work, there can be a lot to wrap your head around.
Having a financial plan that’s tailored to your specific needs can ensure you’re ready for the changes a child can bring into your life – at least with the changes related to your monthly budget. As you are building your plan, here are some things to remember:
What does parental leave mean for you? Whether one parent takes the full allotted 35 weeks or it’s split between two people over 40 weeks, taking a leave from work may mean a reduction in income. Take time to understand the financial impact of a leave from work so that you can focus on adjusting to life with a new baby or child.
Changes to your taxes. How does having a child impact your taxable income? For example, if you get extra income while on maternity leave, you will have to claim it on your taxes. Take a moment to understand how this change in your family structure will impact your taxes.
Understand the costs of having a child. Growing your family is not cheap, but with a little advance planning, it doesn’t have to break your budget either. Expenses to consider when creating or updating your budget include:
Child care costs or lost income
Upfront costs such as diapers, clothing, a crib or a car seat
Extra savings in case you plan on extending your parental leave
An emergency fund
Adoption or fertility treatment costs
Ongoing costs such as clothing, sports activities and music lessons
Additional insurance coverage
Post-secondary education savings
If starting a budget for your growing family feels overwhelming, don’t worry - many of us have been there too. It’s a lot to think about and we’re happy to help you sort through all of it, ask the important questions, and come up with a plan.
Start saving for your little one’s future
There are several banking options available to you, including a Registered Educational Savings Plan (RESP) to which you can make monthly contributions based on your budget. One of our financial advisors can help you, a grandparent, extended family member, or friend open a new account at any time.