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The Great-West Life Assurance Company, London Life Insurance Company and The Canada Life Assurance Company have become one company – The Canada Life Assurance Company. Discover the new Canada Life

The Great-West Life Assurance Company, London Life Insurance Company and The Canada Life Assurance Company have become one company – The Canada Life Assurance Company. Discover the new Canada Life

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Freedom 55 Financial is a division of The Canada Life Assurance Company and the information you requested can be found here.

Preparing your finances for the cost of raising a child

Key takeaways

Keep track of your money with a spending plan

By creating a spending plan, you can trim your expenses and monitor your debt. This can help you decide whether to spend money on things like restaurant meals, vacations and top-of-the-line electronics. Cutting spending on these items can help you pay for immediate needs, like baby furniture or child car seats.

Get to know your province’s maternal and parental leave rules

Total weeks of maternal and parental leave vary by province and territory, ranging from 15 to 18 weeks for the biological mother and 35 to 52 weeks of sharable parental leave.

Learn more about the financial help available through Employment Insurance (EI) – or in Quebec, the Quebec Parental Insurance Plan (QPIP) – on the Government of Canada website.Opens a new website in a new window

Start your research on childcare

When it comes to child care, Parents who live in Quebec may enjoy subsidies that limit daycare fees to a maximum of $7.30 a day. For the rest of Canada, daycare can range from $700 to more than $2,000 a month, with costs highest for infant care.

You may be able to claim a deduction for these child care expenses when you file your tax return.

The sooner you start your search, the sooner you can get your name on waiting lists for the daycares of your choice.

Learn about your insurance options

Having children is the perfect time to look at how you’re protecting your loved ones.

If you’re looking for protection that meets your family’s needs but your funds are limited,  term life insurance might be the route to take. It’s a good choice for a growing family.  

Critical illness and disability insurance can also be important parts of a financial plan if you’d like to protect your family in the event of an injury or serious illness.

Meanwhile, health insurance can also help families with dental care and extended health benefits beyond what’s covered by the provincial or territorial.

Build your child’s education fund with an RESP

With the cost of college and university increasing, Registered education savings plans (RESPs) make sense for many parents.

 Although RESP contributions can’t be deducted from your taxes, they grow tax-free. Plus, qualifying withdrawals are treated as the student’s income, which is typically taxed at a much lower rate.

The federal government also provides incentives that add $1 for every $5 you put into an RESP (up to $500 a year and $7,200 total), with some provinces offering additional incentives. Total RESP contributions are capped at $50,000 per beneficiary.

Ensure your plans are in place with a will

properly prepared will can help ensure your children’s financial security. Do-it-yourself will kits are an affordable option, but the extra money you would pay for an estate lawyer could lower the risk of your intentions being misunderstood.

Maybe add something about reviewing beneficiaries on insurance policies and investment accounts.  Also, who will you choose to be a guardian.  Lastly, possibly naming the child as a contingent beneficiaries. 

What's next?

This material is for information purposes only and shouldn’t be construed as providing legal or tax advice. Every effort has been made to ensure its accuracy, but errors and omissions are possible. All comments related to taxation are general in nature and are based on current Canadian tax legislation and interpretations for Canadian residents, which are subject to change. For individual circumstances, consult with your tax, legal or accounting professionals. This information is provided by The Canada Life Assurance Company and is current as of date of publication. 

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