When it comes to having a baby, people tend to talk most about how you won’t be able to sleep for the first few months and how your social life will suffer.
The financial impact of having a baby is less talked about yet needs serious consideration.
I like to think that I am pretty good with my money and planning, but having two babies in two years has been a challenge.
I can only imagine how difficult it would be if we had not planned ahead, or if we had been in debt before trying to get baby ready.
Some common concerns:
How you might not have an income while you wrestle with Service Canada to get your EI claim processed and wait for your first EI payment.
How much everything costs and the increased living expenses you will have after the baby arrives.
Having a baby is a miraculous experience, but if you’re not prepared for the financial impact you may find yourself experiencing major money problems. Here are some tips that I hope will help you:
Get your affairs in order. If you are having financial issues now it will only become worse once the baby arrives.
Start saving now. As soon as you find out that you are going to have a baby start setting aside 20% of your net income. You can use these savings to buy the stuff you will need for your baby and by learning to budget on 20% less income you will be prepared for maternity leave when your income will be lower and your expenses are higher.
Register with Service Canada. It can take some time to get your EI claim processed after you leave work. If you register with Service Canada ahead of time it will make it easier to process your EI claim and allow you to start receiving benefits quicker after you finish working.
Plan your purchases. You don’t need everything right when the baby gets home. Figure out exactly what you need right away, and then buy things as needed. Also, www.kijiji.ca and www.ebay.ca can be great sources to find deals on all sorts of new and used baby products.
Hopefully you’ll find these tips helpful. If you’re still struggling with your finances please don’t hesitate to contact my office today.
