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Having Kids: Money Guide
Everything you need to know about the financial side of growing your family.
👶 Canada is one of the best countries in the world to have kids.
Between parental leave, the Canada Child Benefit, and RESPs, the government provides significant support. Here's how to take full advantage.
Parental Leave & EI Benefits
- ◆Maternity leave: 15 weeks at 55% of income (up to ~$668/week)
- ◆Standard parental: 35 weeks at 55% — can be shared between parents
- ◆Extended parental: 61 weeks at 33% — longer but lower payments
- ◆Top-up: Some employers top up EI to 75-100% of salary — check your benefits!
Canada Child Benefit (CCB)
💰 Tax-free monthly payments:
- • Under 6: Up to $7,437/year ($620/month) per child
- • Ages 6-17: Up to $6,275/year ($523/month) per child
- • Amount decreases as family income increases
- • Payments are automatic once you register the birth
RESP: Start Early!
- ◆Open an RESP as soon as your child is born
- ◆Contribute $2,500/year to get the maximum $500 government grant (CESG)
- ◆Low-income families may qualify for the Canada Learning Bond ($2,000 free)
- ◆$2,500/year invested for 18 years at 7% = ~$100,000+ for education
Budgeting for Baby
Estimated first-year costs in Canada:
| Expense | Estimated Cost |
|---|---|
| Diapers & wipes | $1,000–$1,500 |
| Formula (if not breastfeeding) | $1,500–$3,000 |
| Clothing | $500–$1,000 |
| Gear (crib, stroller, car seat) | $1,000–$3,000 |
| Childcare (if returning to work) | $800–$2,000/month |
💡 Tip: Buy used gear, accept hand-me-downs, and check if your province has subsidized childcare ($10/day programs are expanding across Canada).
Financial Checklist for New Parents
- Register the birth to automatically receive CCB
- Open an RESP within the first year
- Update your will and name a guardian
- Get or increase life insurance
- Review your budget for new expenses
- Look into provincial childcare subsidies
- Update beneficiaries on all accounts
🍁 Canadian Pro Tip
The CCB alone can cover a significant portion of baby expenses. If your family income is under $75,000, you could receive $7,000+ per year tax-free. Use some of it to fund the RESP — the government grant makes it a no-brainer.