If you recall from our blog, Costs of Raising a Child, the average Canadian spends approx. $10,000 - $15,000 each year raising a child - diapers, clothing, activities and more, it all starts to add up. When starting a family, creating a financial plan is essential. This is especially important for the first year of parenthood when finances can be a bit tighter due to not working and being on a reduced income.
Earlier this year, we spoke to several Saskatchewan Moms to get their advice on the first year of parenthood when it comes to their financial and mental health and things to consider. Here’s what they had to say:
- It’s never too early to start preparing. Your due date is just an estimated date and your baby can come at any time. Be prepared for an early arrival by having your bag packed, finishing the baby’s room and applying for employment insurance in advance of your due date.
- Budget. Budget. Budget. Creating a budget is key for the first year of parenthood especially due to an increase in expenses and for most, a decrease in income. Use an online budget template to help you understand your new financial situation and to create a plan for the year.
- Know the benefits you may qualify for. Other than employment insurance, there are a few other benefits that parents may qualify for depending on their family income including the Child Tax Benefit and GST credit. These additional benefits can help supplement your income, especially while on parental leave, and be used to help cover the costs of baby essentials. To learn more, visit Canada.ca.
- Stock up on household items. A few weeks before the baby’s arrival stock up on household items such as laundry detergent, toilet paper, etc. This will help you to do smaller shopping trips once the baby arrives and are working around feeding and sleeping times.
- Use coupons and cash rebates. Diapers, wipes and more can be expensive and many companies offer coupons to parents to help reduce costs. Another way parents can save money is by using cash rebate sites such as Checkout 51, which frequently has cash-back offers on baby related item purchases such as diapers.
- Treat yourself. Once the baby is born, it can be hard to take time for yourself, especially in the first few months. Prior to the baby being born go out for supper or to the movies to enjoy a little you time. Once your baby is born, continue to treat yourself every so often, even if it’s grabbing a quick latte here and there.
- Host girls night: Invite your close friends over one last time before the baby comes. Supply some appies and beverages. To help when the baby arrives, have each friend bring a pre-made freezer meal that you can heat up quickly for supper when time may be limited.
- Buy used clothing: Try not to buy everything brand new as babies outgrow things quickly. Use sites such as VarageSale or attend clothing sales to find barely, worn clothing for a fraction of the store price.
- Save, Save, Save: It’s never too early to start saving for your future family. Create a savings account that can be used to purchase baby items, help supplement your reduced income for when on parental leave and to get you started on planning your child’s future (e.g., RESPs).
With all the Moms we spoke to, the advice that came up over and over again was knowing you’re not alone. Having a baby can cause many things to change including our hormones, sleeping patterns, etc. and at times you may feel stressed or exhausted. Whatever you’re experiencing or feeling another parent is most likely going through the same thing and it’s important to connect with other parents, such as joining a parent group, to relate and go through these new experiences with. This not only helps to get you out of the house a bit each week but also is a great way to share experiences and connect with other parents going through the same thing as you.
The first year of parenthood can sometimes be challenging but it’s also the most rewarding as you get to spend the time with your newest addition and watch them grow. Do you have other tips or advice for the first year of parenthood? We’d love to hear them – share with us here.