Planning for the arrival of a baby can be both scary and exciting. After all, having a baby is something that will change your life forever. Although you're probably looking forward to having children of your own , you want to make sure you're well-prepared so you can give your child the love and attention they deserve. If you don't know where to start, don't worry, we'll take care of it. Below is the financial checklist to follow to prepare for the arrival of a baby.
Fulfill your commitments
The highest priority you should have when planning for the arrival of a baby is to pay off your debts . Caring for someone else can be very expensive, plus having debt will only add more stress than necessary. This is relevant if you have a lot of debt. If you're not sure how best to get rid of them, we recommend paying off the debt with the highest interest rate first. This payment method is called snowballing and will save you more money in the long run. When it comes to caring for a baby, every dollar counts .
Evaluate the benefits your spouse gets with your current employer.
Another thing to consider is the benefits offered by your employer. Among the benefits that an employment contract grants are the number of days of maternity or paternity leave you are entitled to receive and whether or not you can transfer some of these days to your paternity leave. There are also some health benefits that are good to know before the baby is born. Maternity or paternity leave can also affect your pay, so it's important to tell your employer. If your incomeregular weekly wages are reduced by more than 40%, you must request an employment record from your employer before you can apply for unemployment insurance (EI). To conclude, they must agree who will take care of the maternity leave.
Analyze the cost of child care
One of the biggest expenses when you have a child is the cost of child care. In Quebec, there are several types of kindergartens: those that are subsidized by the state and those that are not private. Subsidized child care is $8.70 per day per child for parents. They are not for profit and most of the directors are parents who work in day care centers.
Unsubsidized private childcare costs can range from $30 to $60 per day per student. Although the rates are much higher, according to the Quebec Ministry of Finance, parents are eligible for a refundable tax credit for child-rearing expenses. This loan is equivalent to a percentage ranging from 78% to 67% of the expenses incurred for the care of eligible children, depending on the family's income.
Remember that it is necessary to plan childcare in advance. Subsidized day care centers are very crowded and many parents have to reserve their place almost nine months in advance. So, if your child care center only accepts babies that are 6 weeks or older, you'll need to start looking when you're 6 weeks pregnant. Otherwise, you could end up on a long waiting list.
Set a spending limit and save for an emergency fund
The most transcendental of tasks when it comes to planning a baby is calculating the cost of raising it and the budget allocated to deliveries. Your budget should include baby clothing, nursery, cot, rocking chair, car seat, baby toys and books, nursing supplies and food, maternity clothes, and costs associated with child care. Also, you should realize that many of these components are replenished frequently, as babies grow so quickly. You should also anticipate the costs of your child's education in the future.
Taking care of children is the greatest responsibility that can be assumed. You are not only creating a new life, but you are also changing your own life. That is why it is necessary to plan properly. If you are not able to complete all checkpoints of your budget, the Allevia online application can definitely assist you. He will examine your personal situation and provide advice on how to reach your financial goals and have the life you've always wanted.
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