Welcome to your upcoming sleep-deprived, new world! There are many firsts you will come across that are very exciting! Until then, you have found yourself here at our blog post, so let’s get right to it!
Before the Arrival of Baby
- Will & Power of Attorney – this could be before or after the baby, but in general, you will never be less busy than you are before the baby; why not get this done now? A lawyer can assist with setting up the wills and power of attorney’s for on average $500 depending on the firm. Pre-baby, the Power of Attorney for Personal Care is an excellent idea to have in place.
- Life and/or health insurance – like the wills, much easier to complete pre-baby. There is more now riding on your (future) income.
- Apply for your local daycare – this does not fit with the financial to-do’s, but the wait times are longer than you’d expect!
- Review your employer’s benefits - some ideas are: How much paid maternity or parental leave is available for your job? Can you add any vacation time or sick days you are owed to your paid parental leave? Does your employer offer a salary top-up (note: this is taxable)? Do you have to pay for health and dental benefits yourself during maternity leave? How will parental leave affect your pension?
- Employment Insurance (EI) - Discuss maternity and parental leave options with your spouse or partner. Decide if one of you will take all of the available leave or if you’ll split it. EI benefits are separated into maternity benefits (15 weeks) and parental benefits (40 or 69 weeks). Click here for the full explanation and background. Also, Request a Record of Employment (RoE) from your employer ahead of time - you’ll need this to apply for EI. If you are curious about what you would earn, click here to calculate. One item is remember is your employer top-up and EI benefits are taxable!
- Emergency Fund - Between going down to one income, unforeseen baby expenses (have you looked at stroller prices????), it is beneficial to throw money into your savings account for a rainy day.
- Choose a baby name – Okay, this again is not financial, but may we suggest Ben?
Welcome to the World, Baby!
- Apply for government ID – You have 30 days to apply. This application process will provide Baby with a birth certificate, SIN, and health card. Click here if Baby was born within Ontario. The linked form will encompass both federal and provincial registration requirements.
- Employer Health Insurance – If your employer offers group benefits, you have 30 days to add Baby as a dependent. If you wait longer, the insurance company has the right to ask for their proof of health and can decline coverage for them.
- Canada Child Benefit (CCB) – The CCB is tax-free money from the government for having a kid! Registration should have automatically happened when applying for Baby’s government ID (step 1). You can double-check or reregister by going to your CRA online account (click here). On the left-hand side, there is a section called Benefits and credits. Click here to find out the amount you may qualify for.
- Open a Registered Education Savings Plan (RESP) – This option is available once you receive Baby’s SIN number in the mail. The government provides excellent education savings grants. We just wrote a blog that will explain this in-depth called Education Savings – RESP vs.Scholarship Plan. ***Budgeting tip: some people redirect their Canada Child Benefit into an RESP to maximize those grants!***
- Have fun and sleep often!
Let us help navigate the financial side of parenthood. From RESP’s to life and health insurance, we are here to help!
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