Adding to your family is an exciting event. With so much to think about and do, we know it can also be a little stressful – and we want to be there to help with your financial needs. This checklist can help you address a wide range of financial considerations before your new addition arrives.
- Discuss working arrangements. Will either spouse adjust work schedules?
- Investigate your options for day care and work together to agree on a solution.
- Understand your employer's benefits related to having or adopting a child (e.g., parental leave, maternity or paternity coverage, health benefits).
- Research EI maternity and parental benefits.
- Review your investment strategies, goals and insurance with your financial advisor. Also consider reviewing your tax and legal documents with your tax and legal professionals.
- Obtain a Social Insurance Number for your child as soon as possible. (Many hospitals provide new parents with the form during the mother's stay.)
- Update the number of dependents information with your employer.
- If you're adopting, research the federal income tax credit for adoption-related expenses.
- Take advantage of the federal Canada Child Benefit, if eligible.
Set education goals
- Start saving early – time is a major asset.
- Review your options for education savings including RESPs, TFSAs, personal savings, etc.
- Work with your financial advisor to balance education savings with your other goals, including saving for your own retirement.
Prepare for the unexpected
- Save three to six months' worth of living expenses for emergencies.
- Review your health insurance plan and add your new child to your coverage.
- Consider (or review your current) disability insurance to ensure the family's needs are covered.
- Review your life insurance to ensure your entire family's needs (including future education costs) are covered.
Plan your estate
- Work with your lawyer to create or update a Will, naming a guardian for your child.
- Review/add beneficiaries to RRSPs, TFSAs, life insurance, annuities and other accounts.
- If you're a business owner, set up a succession plan to ensure the continuity of your business.
Considerations for a special-needs child
- Research the Disability Tax Credit, the Child Disability Benefit, and other federal government programs and services.
- Research provincial programs and benefits.
- Research community programs or grants for special education.
- Evaluate ways to ensure ongoing care if something were to happen to you.
- Talk with your lawyer to determine whether a special needs trust (e.g. a Henson Trust) may be appropriate for you.
How we can help
At Edward Jones, we care as much about why you're investing as what you're investing in. Contact your financial advisor to learn more about our services for your family's future.
Edward Jones, its employees and financial advisors are not estate planners and cannot provide tax or legal advice. You should consult your estate-planning lawyer or qualified tax professional regarding your situation.
Insurance and annuities are offered by Edward Jones Insurance Agency (except in Québec) In Québec, Insurance and annuities are offered by Edward Jones Insurance Agency (Québec) Inc.