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The Financial ABCs of Raising a Family

The Financial ABCs of Raising a Family

May 30, 2014

These days, there are plenty of great tools new parents can take advantage of to prepare financially for a new addition. The best part: they can be the building blocks for a debt-free future for you and your children. Here’s how to get started.

A baby cost calculator. 

Childcare, diapering, feeding – they’re all commonplace costs for an infant’s first year. Fortunately, a baby cost calculator can help you create an informed estimate. From on-going costs such as clothing and medicine to one-time expenses like an infant car seat or stroller, a calculator is the perfect way to anticipate costs and save for tomorrow.

An education savings account.

There’s no time like the present to start saving for your child’s education. A post-secondary savings account, for example, is an excellent way to ensure your savings meet or exceed your child’s future tuition costs. Some children are eligible for education savings grants and bonds which allow parents to make regular contributions. A personal line of credit can help parents borrow money for their child’s education when the time is right. 

An insurance policy. 

The right insurance policy can help cushion the costs of raising a family in the event of a death or injury. Replacing income, covering funeral expenses, helping with outstanding debts and loans – they’re all ways life insurance coverage can provide your family members – new and old – with the security and protection they deserve.

A financial plan. 

The first few years of parenthood fly by fast. However, your spending shouldn’t be a blur. Creating a detailed payment schedule can help new parents plan ahead for unanticipated expenses, save for essentials like education, and avoid tardy bill payments which can result in unnecessary interest charges.

A neighbourhood partner. 

Chances are you’re not the only one in your neighbourhood with a growing family. Why not pool your resources and split the costs of parenthood by teaming up. Sharing a baby-sitter, swapping clothes, buying in bulk – they’re all cost-effective reasons why raising a family takes a village.