The finances of new parents




Are you getting ready to welcome baby? What a joy to prepare for his arrival, you have a thousand and one things to think about and you want to offer him a safe home that will meet all his needs. Your new responsibilities create a new reality, and the same is true for your finances.

The preparations are not limited to the purchase of equipment, clothes, diapers and baby food. You need to adjust your financial reality, as there are significant costs and responsibilities to face as parents.


The budget

Establishing a budget is essential when baby arrives. Your expenses will increase and during maternity and parental leave your income will decrease. When returning to work, childcare costs are also a significant expense and being well prepared is the key to your success. Stick to your budget limits and don’t be tempted to overspend on the pretext that it’s cute. Buy according to real needs and analyze the cost versus the time of use. Do not hesitate to ask for gift cards as welcome gifts, these cards can give you a good boost for the purchase of baby’s essential needs.

My advice: Make a list of all the expenses related to being a parent and your income, including government benefits such as Canada child allowances, the family programs of your province allowance. Then, make a budget taking into account all these elements.

As you will have understood, the budget is used to ensure that cash inflows remain higher than outflows, with a simple eventual objective: savings.



It is important to plan your financial future and saving is the element that will allow you to face life’s events, whatever they may be.

If you have not already done so, set up an emergency fund, also plan for future purchases, as much in the short, medium and even long term. In fact, you will have to change the furniture, buy bicycles, maybe even participate in the purchase of a vehicle.

A great way to save is to automate savings based on your payroll frequencies. Just setting up automatic payments will save you a nice amount of money without even changing your routine.

The RESP is also an excellent way to provide for the amounts necessary for your child’s studies. Despite the fact that tuition fees are among the lowest in the world, that does not mean no fees at all. On the contrary, education remains an important investment and as a parent, you may wish to financially support your children during their studies.

My advice: Consult a financial advisor who can help you build an action plan. Some financial strategies can be very effective and generate little outflow of money from you. For example, a couple who contributes to RRSPs reduces their taxable income, which will increase the allowances, and the tax refund can be used to contribute to RESPs.



The arrival of a child represents a significant financial burden on the part of the parents and that is why it is important to write a will, a mandate for the protection of the living, but also to review their personal insurance protections. Life sometimes has bad surprises in store for us and no one is immune to the illness or death of one of the family members.

You may have group insurance with your employer. If applicable, you must check whether the coverage offered is well suited to your new family situation.

The objective is to minimize the financial repercussions in the event of an illness or death of one of the parents, but we must not forget to protect the child as well. Let’s be clear, no one thinks they would like such an event to occur in order to benefit from insurance protection. That being said, protection in the event of disability, serious illness and death, adequate, will allow the family to live through such events without worrying about the financial aspect while maintaining the standard of living of the family at least at the same level as today.

My advice: There are a range of solutions available to you to protect the financial life of your family. This is why it is important to be well supported by a life insurance advisor, who will help you make choices based on your goals and your budget.


In conclusion, the arrival of a child is a happy event that will change the rest of your life. You are or will be a parent, and a new baby will depend on you for many more years. Remember that this is also an opportunity to ensure your financial health and plan for a happy future, free of financial stress, for your whole little family.


Katie Lefebvre
Partner of your financial success