How can you save money for your family's financial future?

How can you save money for your family's financial future?

 
Becoming a parent is one of the greatest joys in life, but it can also be stressful, because with this happiness comes new responsibilities and new expenses.

A survey on financial health and well-being, conducted in 2018 by Desjardins Insurance among approximately 3,000 Canadians, reveals the following:

55% of respondents
see lack of savings as the main source of financial stress.
46% identify
expenses as a source of financial stress.
It is therefore essential to prioritize and adopt healthy habits that will allow you to manage your family budget. Once established and well monitored, the budget will become an essential tool for:

help you control your spending
allow you to adopt strategies aimed at reducing certain costs
reduce your stress and increase the financial health of your family.
How to manage a budget? First of all, it is important to know your financial situation well. Test your financial strength and take stock of your financial situation.

Once you've tested your financial situation, check out the other articles in our tip kit. They could help you reduce your financial stress, especially at this important point in your life when you decide to start a family, and as your child grows.

How do you determine your financial priorities before the arrival of a child?

Make a budget. Draw up a picture of your finances, indicating your current income and expenses. You can then forecast your income based on what you will receive during your parental leave. This will allow you to determine how much you can allocate to your new needs.
Consult with relatives around you to determine essential items and make a list of new family expenses to plan.
Set aside an amount to be used as emergency funds in case of need.
Review your protection needs (life insurance, disability) as well as your will, to take your new beneficiary into account.
How to save when a child arrives?

If possible, confirm whether it would be possible to borrow some used items from parents of older children.
Check out the programs and allowances available in your community for new parents.
How to keep a balanced budget when the child grows up?

Here are some ideas to make it happen:

For sporting activities, you could purchase the equipment at second-hand stores.
Enroll your child in school clubs or teams. These are often less expensive than extracurricular activities.
You could invest in buying a used car and consider carpooling with other parents.
Encourage your child to DIY gifts and cards for their friends' birthdays.
Check with the various levels of government which expenses are deductible from your taxable income or give entitlement to tax credits (eg child care, expenses related to physical activities, etc.).
Find out if you qualify for government programs such as the Canada Child Benefit.
Set yourself financial goals, such as contributing to a Registered Education Savings Plan (RESP) External link. Opens in a new window. Gardens. For example, you could invest the Canada Child Benefit or even involve grandparents! In addition to investing money for your children's education, you benefit from attractive government grants.
Raising happy, healthy children without breaking the bank is very possible. With proper planning, you will reduce your stress while securing your family's financial future.