Becoming a parent is a joyful, life-changing event. That said, in addition to diapers and lack of sleep, parents face various financial challenges as well as a significant change of lifestyle.
They must budget for new expenses, like buying a family car or paying for daycare, while dealing with a drop in salary during their parental leave.
To offset an anticipated lower income, you could save up money in a TFSA. Amounts invested could also be used for unexpected events.
What is the best insurance for you?
To ensure the financial security of your child in the event something unfortunate were to happen to you, you can choose from several types of life insurance including term life, whole life or universal. Ask a representative for help to make an informed decision that suits your needs.
Consider a Registered Educations Savings Plan (RESP)
An RESP is a plan that allows you to save money towards financing post-secondary studies. The money you deposit in a RESP will grow tax free, and you could also benefit from government incentives that will help your savings grow more quickly.
In all cases, the contributions limit is $50,000 per beneficiary.