Congratulations! You and your partner are expecting a bundle of joy in a few months. You’re happy, but you can’t help but feel a little bit stressed.
How much does it cost to start a family in Canada anyway? It’s more expensive than you may think. You need supplies for the baby, shelter, and you have to set up child care if you plan on going back to work.
You will qualify for help when you’re out on maternity leave, but you’ll still suffer from wage losses. It’s a lot to budget for.
Keep reading to learn more about how much it costs to raise a child and how you can save up to cover the expenses.
Maternity Insurance
When you begin maternity leave in Canada, you’ll get a little bit of help to keep you afloat while you’re not working. You’ll be covered for 15 weeks, but if you need to extend that amount of time, you can.
For the first 15 weeks, you’ll be compensated up to 55% of what you would be making if you were working. After the 15 weeks are up, this amount goes down to 33%.
Another thing that you must keep in mind is that this money is taxable. You’ll need to keep some of your earnings off to the side to take care of this.
Beginning Expenses
There are a lot of things that parents have to buy to meet the needs of a new baby. They have to have a crib to sleep in. You’ll need a car seat, a stroller, and a high chair.
Baby gates are a must to keep the little one out of trouble. You may also need to invest in other safety materials like baby locks and panels to cover sharp corners.
All these things can cost you thousands upon thousands of dollars. There are ways you can cut down on the cost of the beginning essentials, but we’ll get into that later.
Long-Term Expenses
Newborn babies go through diapers at an alarming rate. The same can be said about formula unless you’re breastfeeding them. As they grow, their appetites will grow with them.
Speaking of growing, babies outgrow their clothes pretty fast. So, be prepared to go shopping for new clothes every month or so to keep up with their growth spurts.
Child Care
Once your maternity leave is over and you and your spouse are both back at work, you’re going to need someone to watch over the baby. Some couples have family members who are willing to step up and help.
For many couples, however, the only answer is child care. You can spend up to 700 dollars a month enrolling your child in a facility.
It’s not all bad, though. Be sure to keep every single one your receipts because you’ll be able to write some of this expense off on your taxes.
Life Insurance
Now that you have the added responsibility of a baby, you should consider getting life insurance. This way, if something happens to you and your spouse, your child won’t be left to suffer financially.
While you’re still healthy and not too old, this expense won’t be too bad. You’ll spend about 40 dollars a month on it if that.
Saving for a Baby
When you’re looking at the average cost of a child, it’s easy to start panicking. Take deep breaths. There are ways that you can cut down on the expenses a bit.
Chop Your Extra Costs
The first step in budgeting for a child is to take a good look at your expenses. Chances are when you take the time to look, you’ll see a bill that you don’t really need to be spending money on.
For example, with all the streaming services available, you might not need that expensive cable package. Stop eating out as much. Drop your expensive cell phone company and go with a cheaper one.
Sell Things You No Longer Need
One thing you can do to help with the cost of a child is to sell the things that you no longer need. It gets rid of clutter, so you have a place to put the baby’s things, and you can use the money to buy stuff that they need.
Hunt for Sales
You can find great deals on gently used baby clothes online. This doesn’t mean you should buy everything second hand though. Depending on how old that cheap car seat is, it may no longer meet safety standards.
Always keep a watchful eye for sales on new cribs, high chairs, and other equipment. You can also add these items to your baby registry and rely on family and friends to help you out.
Open Up a Savings Account
As soon as you realize you’re expecting a baby, open a savings account. If you put a part of each paycheck into this account that will give you quite a bit of money to put toward the beginning baby expenses and beyond.
You can also encourage family members and friends to contribute to the account as a gift.
How Much Does It Cost to Start a Family and Raise a Happy Child?
How much does it cost to start a family? The answer is a lot. You’ll have to put back money for a crib, clothes, formula, and more.
It can be a little overwhelming unless you save up. Maternity leave will help you, but you’ll still experience a hefty wage loss. Start getting ready as soon as realize you’re expecting so you don’t get caught off guard.
Need a little extra help saving up for your baby? Go here to sign up for a loan and claim your cash!
