How do I prepare financially for having a baby?

New parents wealth planning checklist

Becoming a parent comes with a lot of changes and with that comes many wealth planning considerations. Here is a checklist outlining some of the most important factors you will need to consider when welcoming your newest family member.

Apply for the CCB

The Canada Child Benefit (CCB) is a tax-free monthly payment made to eligible families to help with the cost of raising children under 18 years of age and is administered by the Canada Revenue Agency (CRA).

Set up an RESP

Registered Education Savings Plan (RESP) is a tax deferral investment that can be used to save for your child or children’s post-secondary education. The Canada Education Savings Grant (CESG) will match contributions up to a defined amount.

Add your child to your extended health benefits

This will allow you to be reimbursed for any qualifying medical expenses your child incurs. If you don’t have extended health benefits through an employer, consider adding private coverage.

Review of purchase life insurance

Now that you have someone who is dependent on your income, it’s important to ensure you are adequately covered in regards to life insurance.

Start an emergency fund

This can be as simple as setting up a separate savings account and contributing to it regularly. It’s ideal to have the money easily accessible to ensure that, if needed, you can access it quickly without incurring fees.

Decide on guardians and set up a will

Guardians become a key part of your will planning once you have children. It can be a touchy subject for parents, but being prepared is key.