Financial considerations for new parents when planning for or having a baby. Written by Brandon Chapman of SAAS Wealth Insurance.
As a financial advisor specializing in the technology industry, and with my first baby girl just being born, I understand the excitement and financial considerations that come with welcoming a new addition to the family.
Working alongside Brood, I’ve been reviewing all the financial factors to consider when planning for a baby. In this article, I will share ten financial factors to consider and how working with Brood can help you navigate this new chapter in your life, based on my personal and professional experience.
Ten Financial Factors to Consider When Planning for a Baby:
- Plan for parental leave – If you are eligible for employment insurance, you may be entitled for up to 78 weeks of parental leave. You can find more details about this program on the CRA website here. Also ensure you determine your employer’s parental leave policy and plan how you will financially manage the time off. You may be eligible for a top up which can supplement your income during this time.
- Factor in childcare costs – although $10/day care was announced by the BC provincial government in 2018, it’s difficult to access as there’s a limited number of seats. Accessing childcare in general is challenging and most experts recommend putting your name on a waiting list at least a year in advance to avoid disappointment.
- Start saving for college/university – the cost for post-secondary has increased substantially over the years. If you’d like your child to be set up for success, consider setting up a Registered Education Savings Plan (RESP). These can offer a minimum 20% grant match from the federal government up to $2500/year.
- Budget for new expenses – Having a baby means additional expenses, such as diapers, formula, clothing, and childcare costs. It’s important to plan for these expenses by reviewing your budget and making necessary adjustments to accommodate the additional costs. Here’s a link to our in house budgeting tool.
- Review your health insurance – Canadians often feel comfortable assuming that everything medically is covered with universal health care. While many of the services associated with having a child are covered, you’ll want to confirm with your employer sponsored plan and federal employment insurance program regarding what is and isn’t covered for your situation.
- Review life insurance policies – ensuring you have sufficient coverage to protect your family will protect your loved ones from needing to make very difficult decisions during an emotional time. For a complimentary quote, please reach out to us and here’s an infographic on life insurance needs over your lifetime.
- Consider disability insurance – As a self-employed entrepreneur, disability insurance can help protect your income in case of an unexpected injury or illness. Here’s an infographic with more information.
- Update your estate plan – Preparing a will and estate plan can ensure that your assets are distributed according to your wishes, and that your child is provided for in case of your unexpected death.
- Financial education: Understanding basic financial concepts and strategies can help you make better decisions for your family’s future. Consider working with a financial advisor to help you navigate these decisions.
- Doula and family care resources: Services such as doulas and family care providers, like Brood Care, can provide valuable support for new parents. Researching and budgeting for these services can help ease the transition to parenthood.
How Brood Can Help:
As a family care company, Brood offers doula services and family care resources to support new parents. Their experienced doulas can provide emotional, physical, and informational support throughout your pregnancy, birth, and postpartum journey. Additionally, Brood’s family care resources offer a wealth of information and support to help you navigate the challenges of parenting. By working with Brood, you can access the resources and support you need to make informed decisions about your family’s financial future.
How SaaS Wealth Insurance Can Help:
As someone who is expecting their first baby girl in August and working with Brood to navigate the financial aspects of starting a family, I understand the importance of planning for a baby. By considering the financial factors involved in having a baby and working with Brood, you can feel confident in your ability to provide for your growing family. At SaaS Wealth Insurance, we specialize in supporting the technology industry, we can help you create a customized financial plan that takes into account your unique circumstances and goals. Please don’t hesitate to reach out to us or let us know if you have any questions.