Get your finances in order before the baby arrives


Are you looking forward to welcoming a new baby? Congratulations. If she’s here, it means she’s looking for expert guidance on how to prepare her finances for the arrival of the newest member of the family. This is a crucial aspect of an expectant father.

The importance of this education is underestimated, as you could plunge into deep debt and declare bankruptcy trying to train your child. Yes. Caring for a baby costs a lot, and a responsible financial plan will certainly give her a soft landing as she strives to meet her financial goals.

According to previous studies, it is possible to spend between CAD10,000 and CAD15,000 on a child per year. The relevant and somewhat complicated intricacies of financial planning will be removed here, as we provide a step-by-step guide on what to do to provide a safe landing for your child, financially.

Before the baby arrives

This is the first stage and the opportunity for you to begin the process of planning for your child’s future. It involves good research and planning. The following tips should be on your to-do list prior to your child’s arrival.

Create a pre-arrival budget

First, start with a list of items that may require a large amount of funds. Strollers, an infant car seat, a crib, etc. could be among the supplies you may need. In essence, cash-intensive purchases that you think may be necessary should be on this list.

Remember that it should only be essential items. It may be a long way to go and you want to avoid running out of money. Keep an eye on prices and shop around among vendors to find the best option. Obtaining funds could be a challenge. Fortunately, there are several options you can check out, including researching the best payday loan lenders. There are many Guaranteed payday loans no matter what Canada 24/7 services to consult. It’s a great way to take the pressure off while planning for your baby.

Take advantage of maternity leave

Using a maternity or paternal leave gives you options to save money while you plan the next step with your partner. There is the employment insurance package, which could be beneficial to you as an expectant parent.

Be sure to talk to Human Resources about what is covered, including benefits and other government services (if available). A common offering is Canada child benefit (CCB), for which you can apply immediately after birth. It is tax-free and is paid every year until your baby turns 18.

Fund Savings for Rainy Days

It is possible to run out of funds in times of emergency. For this reason, separate emergency savings can help. This will serve as a first defense when unexpected expenses arise, and you don’t need to dip into your investments.

long-term investments

Amid all the excitement and plans, now is a good time to consider making an investment in your baby’s name. The first should be life insurance, if available. Make inquiries about how to expand your list of beneficiaries. An education trust fund or investment plan will also be great for your child’s post-high school education.

If possible, they should be part of tax-free incentives, so that dividends are not reduced. Don’t forget to keep contributing to your retirement investments, especially if you decided to have a child late.

Save as much as possible

Between the emergency funds and the investment, you could have an intermediary savings plan, which can also increase your budget. Some tips here include:

  • Use rewards programs to accumulate points. Is it possible to earn points when using a credit card to make purchases? This can guarantee you additional points redeemable at baby retail stores.
  • Compare options between pre-loved and new items. Chances are you can find used baby supplies from family and friends at cheap prices. This can help you save as much as possible.

After arrival

Now your baby is here. And you’re holding his little fingers in your palm. This is the time to manage the different cost implications.

Submit a record for your child

The first step is to notify the government of the birth of your child. Obtain a birth certificate within your province. Procedures may vary between territories. The financial importance of this is to ensure that your baby gets a social security number and a health card.

Make sure all expenses are accounted for

To show that you are responsible for your finances, it is important that you have a checklist of all expenses incurred, especially within the first 6 months after the birth. It’s easy to lose track between baby care and work.

Here’s a simple hack: For all your diapers, baby food, and clothes, a simple spreadsheet will suffice. This will help you know how much has been spent and where you may need to manage more.

Day care center

As the first birthday approaches, it’s time to consider what daycare options are available. It is a challenge to find good childcare options, since the law stipulates a certain number of children per space, in addition to nursery schools.

The reason you need to start planning is that it is expensive and may not be sustainable. Also, finding quality child care is challenging and could take a while. The types of childcare available vary from province to province.

Most parents opt for an unregulated daycare option, such as an in-house babysitter or contract babysitter. To save costs, find out what the rates are before you start looking for one.

To save costs, you can choose based on the recommendations of family and friends. It’s also a great idea if you have a nursery in your office. The benefit is that it will be cheaper for the staff, saving you the time and stress of picking up your child from a distant centre.

Keep accumulating funds as rainy day savings

With children anything can happen. The basic idea is to take care of your baby without touching her investments. This can be done by putting a part of her budget into a separate account.

Bottom line

Economically planning the arrival of a newborn is not easy. However, you can take some of the pressure off by researching the financing options available to you. Taking advantage of government benefits and reliable payday lenders is essential.

Don’t forget to adjust your will and life insurance to accommodate the new member of the family. Adequate insurance and strict wealth management instructions will put your child on a good landing pad in life.


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