Are you thinking of starting a family? If you and your partner are exploring the possibility of having children, it’s important to prepare for the financial impact your new little one will bring!
The following are a few key points to keep in mind:
1. Maternal and parental benefits: In my experience, the very first decision couples tackle with is how they're going to adjust their lives and schedules to accommodate the new addition to their family. In some cases, the income they’ve been accustomed to may decrease, please see my points #2 and #3 for more. Gaining a solid understanding of the Quebec maternal and parental insurance plan is the first step in a plan for the future. Please see the following link which includes a benefits calculator. It can provide a good idea as to how much money you can expect to receive. http://www.rqap.gouv.qc.ca/
2. Understanding your budget: Whether or not you’ve been following a detailed budget, you can pretty much throw it out the window! Just joking! Hold onto it because you will likely need to adjust it. Have a sit down with your partner and determine what your pre and post baby costs are. This is an important step in creating a game plan, as well as knowing what you can expect, especially when your incomes may experience a temporary adjustment.
3. Emergency fund: Children come with all kinds of unexpected expenses. Setting aside some cash, that’s not invested anywhere and available at a moment’s notice will provide you with the peace of mind to tackle the unexpected.
4. Tackle your credit card debt: You can also consider speaking to your bank or a mortgage broker about consolidating your loans.
5. Talk to a friend: Before you go on a shopping spree for all those baby accessories and items, talk to a friend who’s been through it and ideally bring them with you shopping. It can help narrow down the necessities.
Last but certainly not least, book a meeting with your financial advisor!
Daniel Enayatzadeh is a Financial Security Advisor specializing in investment and insurance planning. He can be reached at 514-996-9400 or at firstname.lastname@example.org