Maternity Leave, Baby & You

One of the many great things about this country is the maternity benefit provided through employment insurance, EI. If you're working, and a bundle of love is due to arrive at your home, then you might well be eligible for EI benefits. This social support can keep you out of now-I'm-a-parent poorhouse if you plan carefully.

The benefits vary a lot so be sure to check out the specifics for your own situation. That way you will know whether you are eligible and how much support you can depend on. Generally, though, most Canadian parents are eligible for 52 weeks of EI, if they can show their earnings have decreased by 40% or more and they have accumulated 600 or more insured hours in the past 52 weeks or since their last claim.

Some lucky people have "top up" plans with their employers that raise their maternity leave earnings almost back to their full working salary. Remember, though, all earnings are subject to taxes just like regular income. So now you're ready, right?

Wrong. Your EI sounds all well and good, but the cost of a newborn is high, and often much more than new parents expect-no matter how prepared you think you are.

Here are some more things to consider before your bundle comes home so that your time is spent enjoying the crazy-great changes to your life, and not worrying about whether or not you can afford them.

Learn to spend less before Baby arrives. Fact is, babies cost big time. So learn to spend less before that love bun shows up. Having a financial plan in place before Baby comes means you will have a few extra dollars in the bank to help with the costs-and you'll already have learned that you cannot keep spending the way you may have before baby costs came into play.

Have a return-to-work financial plan. The biggest worry for most new parents is the cost of day care-and whether it's even worth it for a parent to go back to work given how expensive it can be to care for your infant outside the home. The credentials of the workers are always a worry, wait lists can be long for reputable places, the hours of operation of a daycare centre may or may not meet your needs, discipline measures may differ from your own-not to mention food, child/worker ratios and a whole host of other concerns. So check out daycares well in advance if you plan to return to work.

Raising a child can cost anywhere from $150,000 to $220,000 from birth to the age of 18. That's an enormous cost, and one you want to think through carefully before your first (or second, or third) child arrives.