When you start planning to have a child, there is no doubt that you have in mind full of happy images. To make it as wonderful as it deserves to be, you will have to be able to afford the day-to-day expenses for all stages of your child’s life, and maybe for the brothers and sisters!
This time of reflection and planning will ensure that the best options are available to your family. Here are some topics for you to consider:
Family financial planning
- Revisit your budget
- Consider a savings plan for daily additional expenses; for example to pay for childcare
- Plan ahead for education and invest in a Registered Education Savings Plan (RESP) as soon as possible. After all, financial support for the education of your child may last 18 years – or longer! An RESP lets you grow tax-free savings to pay for your child’s post-secondary education. Some federal grants are also available.
Protect your child’s future
- If you have not already done so, you may consider buying life insurance for your child; the premiums would be low and your child would still be insured later in life regardless of health concerns
- Life insurance for you: If you already have life insurance, you might want to increase the amount of your existing coverage since your needs are greater following the birth of your child
Plan for the consequences of an illness
- Disability insurance and critical illness insurance will help your family maintain its financial stability if your income stops following an accident or serious health problems
- Update your will and appoint a guardian
There are other topics to consider because every family is unique. Feel free to speak with one of our financial services professionals to guide you along your way.
Links on this page direct you to further reading on our national web site at www.dfsin.ca.