Saving for baby

Congrats! I hear you’ve got a new baby on the way. You must be very excited.



Online only.



Or maybe you’re a little afraid. After all, this is another mouth to feed. And nobody gets rich on mat leave, right? So what an expecting parent to do? Might I suggest you figure out how to save a little sumthin’ sumthin’ before your Mini-Me makes an appearance.

1. Save to supplement your mat leave benefits.
The standard maternity benefits leave very little wiggle room. If you aren’t going to get a top-up from your employer, you might want to start practicing living on less as soon as you find out you’re pregnant. Use the difference between your regular pay and your mat leave income to build up your emergency fund and your Baby’s Coming account. Practicing living on less now means you can get a sense of what it’ll be like when baby gets here. And you’ll have some money for any unexpected expenses that pop up.

2. Save by shopping smart, borrowing and making do.
Babies are a great excuse to spend money. But do you really need a wipe warmer? Hey, just hold the wipe in your hand for a few seconds before using it and you’ve got a warm wipe for baby’s bootie. You’ll save about thirty bucks.

How about a change table? Buy a stack of receiving blankets. Lay one out on your bed, the couch or the carpet to change the baby. Savings: $200. Make sure you make a list before you head out to shop for baby. And before you put your hand in your pocket, call your friends and family to find out who has stuff they can lend you so you can whittle down your list. Make sure you register if someone is throwing you a shower so you get stuff you need, not just stuff other people think is cute.

3. Get baby a SIN card and open up an RESP.
Now you have a place to put the money people give for presents, and you can stash away $50 or $100 a month (to begin with) for university or college. Believe me, that’ll be way easier than coming up with the thousands and thousands (and thousands) you’ll need when your kidlet heads off to the halls of higher learning. The Canada Education Savings Grant will help, but that’s another blog.

4 comments on “Saving for baby

  1. This is all great advise and it really echo's what my parents/family have been telling my fiance and I. We're not pregnant yet – but are planning for a family in a year or two – and they tell us that babies don't NEED to cost as much as consumerism and waste make them cost.

    here here!


  2. Save some of your money for your tax bill the year after your maternity leave – the government holds back very little income tax off of your Maternity EI payments, sometimes leaving you with a big tax hit the next year!


  3. Good tips. Don't forget that for #3, baby must be born. If you want to start saving for an RESP before you can actually open one, use your TFSA (if you're not going to max it out anyway) or your savings account. You won't earn the interest but at least you'll be in the habit of putting the money away. *If you are investing the money, make sure there are no fees (like deferred sales charges) to move the money into your child's RESP when the time comes.


  4. If there's something that will stimulate you to save money, this is having a family and a child. As a parent, one becomes more and more financially responsible. And how can this be achieved? Your tip on borrowing things from friends and relatives is certainly a good idea to start with. Parenthood makes people more willing to help. Make sure to have a sweet approach on them, with hand-me-downs. Another wise idea is price comparison on Internet. WIth a lot of patience, you get a bargain.
    About baby-sitting costs , maybe it will be a good idea to find somebody more baby-oriented and less money-oriented. A neighbour's daughter, somebody you know and trust, could take a better care of the baby and it would be less interested in the amount of money she charges.
    More than anything, having a child should be an emotional experience, but it's important for his sake not to let ourselves taken by the wave and to watch the costs as closely as we can.


Leave a comment

Your email address will not be published. Required fields are marked *