You’ve read the books and prepared yourself for diaper blowouts, spit-up and sleepless nights, but do you know what to expect financially when you’re expecting? A new baby involves a lot of adjustments, money matters included. Here are some financial questions to ask and answer before your bun comes out of the oven. 

1. What changes need to be made to your monthly budget?

A little forethought could prevent a lot of credit card debt. New baby means new lines in the budget. Think through monthly expenses like diapers, baby gear, clothing and adjust accordingly. Your household’s take home pay will likely be changing as well, which will affect your current spending habits. It may be helpful to meet with a CIBC Journey Financial Advisor and use a handy online budget calculator. 

2. What kind of schooling do you have in mind for your child?

Do you envision sending your child to private school? For how long? Do you hope your child will attend university one day? According to Statistics Canada, a Canadian looking to attend university as an undergraduate in Canada will expect to pay about $6,463.00 per year. And that’s just tuition. Never mind essentials like housing, books, and pizza. The projected tuition cost in 2035 is (gulp) $17,200 per year. (*cries in corner*) Starting an RESP is a great way to keep your family’s education goals on track. You can start one as soon as you receive your baby’s birth certificate and SIN number. 

3. Will you be taking maternity or paternity leave?

Across Canada, mothers are able to take up to 15 weeks of maternity leave at 55% of their salary up to a maximum of $638.00/week. After that, parents can split up standard or extended parental benefits up to an additional 40 weeks or 69 weeks respectively. Taking time off can greatly impact your day-to-day finances and is definitely something to plan for in advance. Once you speak to your HR department and find out how much paid leave you are entitled to, you can decide what works best for your family.

4. How much have you allotted for early childcare services?

Childcare costs are like real estate prices–all about location, location, location. In major cities like Toronto, parents can expect to pay upwards of $2,000 per month for a full-time infant spot. Luckily the ball on Ottawa’s $10-a-day Childcare plan is now rolling. (*All Canadian parents simultaneously jump for joy) The goal is to bring the average cost of a child-care spot down to $10 per day in 2025. Parents across Canada will start seeing rebates in the coming months, but at the moment, full fee payments are still in place at licensed centres. The hourly rate for a nanny typically ranges from $15 to $20. 

5. Do you have sufficient life insurance?

Many parents decide to scale up their life insurance once there’s a new dependent in the house. Policies ensure that anyone who relies on your income for their financial prosperity (i.e. partner or children) will receive money when you die. Do you need a permanent policy that will last you for life or a term policy that will cover you until your kids finish post-secondary? The specifics can be overwhelming. Speaking to a real person about this stuff instead of the wild west of Google is usually your best bet. 

CIBC advisors are ready to help your family achieve your financial goals. Easily set up a chat here.