Saving money for maternity leave

Lots of parents are shocked at how little their maternity leave benefits will be. They think they’re entitled to a year off with full pay and for many that simply ain’t so.



Online only.


Maternity benefits are payable to a birth mother for up to 15 weeks. After that, parental benefits kick in, which can be claimed by either parent and last for up to 35 weeks.

But here’s where the real kicker comes in. Employment Insurance pays 55% of your average insured income so the maximum you can get is about $460. If you don’t get a top-up at work, you’re going to have to learn to live on a lot less while you’re home with baby.

So how do you save for baby’s arrival?

Why not practice. Live on your maternity/parental leave income for the duration of the pregnancy. Put the rest away for emergencies, to buy the stuff you’ll need for baby, or to start an education savings plan. Since the first two weeks of mat leave are unpaid, having some extra money in the bank will come in very handy. And if you can’t swing living on less it for the months that you’re preggers, you might want to reconsider taking the full year’s mat leave.

The other thing to think about is which parent will take the most time with the baby. Traditionally, women have done this. But when the woman is the primary breadwinner in a family, the income loss to the family is felt doubly. Do the math to see who should take time off and how much, and how that will impact on your family’s financial situation.

The arrival of your newest family member should be a time full of joy and excitement. But you can’t expect things to run smoothly if you’re a dope and don’t do some planning. Put the nine months of pregnancy to good use growing a strong and healthy baby and also a big pool of cash to cope with the changes that are coming your way.

4 comments on “Saving money for maternity leave

  1. I admire the dear data you offer on your articles. I will be able to bookmark your weblog and have my youngsters check up here generally. I am quite positive they are going to be informed lots of new stuff right here than any one else!


  2. I do not know just how i found your blog post because i had been searching details about politics, but anyway, i have an excellent time reading it, keep it up!


  3. My wife and i got quite comfortable when Edward could complete his analysis through the entire precious recommendations he had from your own web site. It’s not at all simplistic just to continually be giving away helpful tips that many most people might have been trying to sell. And now we grasp we have got the writer to thank because of that. The entire explanations you’ve made, the straightforward blog navigation, the friendships you will assist to instill – it’s everything fabulous, and it’s aiding our son in addition to our family reason why that matter is brilliant, and that is exceedingly important. Thanks for all!


  4. I definitely wanted to write down a small note to express gratitude to you for all the precious ways you are giving on this site. My extended internet research has at the end been compensated with good ideas to go over with my family. I would assume that many of us readers are very much fortunate to live in a notable network with so many marvellous people with great guidelines. I feel extremely grateful to have discovered your entire website page and look forward to really more amazing minutes reading here. Thank you once more for all the details.


Leave a comment

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