Welcoming a new child into the world is one of the most exciting times in a person’s life. Amidst the sleepless nights and countless “firsts,” it’s easy to put financial planning on the back burner. Yet, taking a few simple steps early can set your child up for long-term success. For families in Ontario, there are practical tools and supports available to make the process straightforward.
1. Apply for Government Benefits
Start by registering your child’s birth and applying for a Social Insurance Number (SIN). With a SIN, you can access important benefits such as the Canada Child Benefit (CCB), which provides monthly, tax-free payments to help with the cost of raising children. The Ontario Child Benefit may also be available, depending on your household income. These benefits provide a steady stream of support and can be redirected into savings for your child’s future.
2. Open a Registered Education Savings Plan (RESP)
Education is one of the largest expenses parents will face. An RESP helps you save while taking advantage of government grants. For every dollar you contribute, the government matches up to $500 each year (to a lifetime maximum of $7,200) and families with lower incomes may qualify for even more through the Canada Learning Bond. Opening an RESP early means your contributions, and the grants, have more time to grow through compound interest.
3. Think About Insurance
Once you become a parent, protecting your family with adequate life and disability insurance is critically important. Having the right coverage ensures your child’s financial security even if unexpected circumstances arise. Many employers offer group plans; however it’s worth reviewing whether additional coverage is needed to fit your family’s situation.
4. Build a Family Emergency Fund
Once you’re a parent, it’s important to have a “nest egg” to cover costs in the event of an emergency, such as a major repair or job loss. Setting aside even a small amount each month into an emergency fund provides peace of mind. Aim for three to six months of living expenses if possible, but remember: starting small is better than not starting at all.
5. Plan for Everyday Expenses
Financial success isn’t only about long-term investing. Creating a monthly budget that accounts for diapers, child care, and savings helps reduce stress. In Ontario, child care costs can be offset through the Canada-Wide Early Learning and Child Care (CWELCC) system ($10 a day childcare), so it’s worthwhile to explore what supports your family qualifies for.
6. Model Healthy Money Habits
Children learn from watching. Even before they can count, they absorb how parents talk about and handle money. As they grow, involve them in age-appropriate conversations about saving, sharing, and spending. This lays a foundation for financial confidence later in life.
Financial planning for new parents doesn’t have to be complicated. By applying for benefits, starting an RESP, ensuring insurance coverage, building an emergency cushion, and modelling good money habits, you can create a stable path for your child’s future. Small, consistent steps taken today can lead to big opportunities tomorrow.
At Kindred Credit Union, we’re here to walk alongside you in these early days, helping you align your family’s values with practical financial tools. Schedule a meeting with a member of our Wealth and Investment Team to answer any questions you might have and get started saving for the future.