Financially Preparing For Motherhood with Bromwich and Smith
VANCOUVER -- The number of books, blogs, podcasts and magazines dedicated to expectant mothers seems to be growing exponentially.
Taz Rajan, community engagement partner at Bromwich+Smith, shared some tips to help expectant mothers plan ahead.
New moms recieve maternity leave or parental leave pay. However, while most parents are grateful for the benefit, Rajan says it still typically leaves a shortfall in the monthly budget.
Rajan says it is imperative for expectant parents to understand their new budget and prepare for any changes ahead of time.
There is also long-term financial planning to be considered.
Rajan shared that a MoneySense report suggested parents spend about $257,000 on their child over the course of their life through the age of 18.
Regardless of the figure, it can not be understated that raising a child costs money. Rajan says one of the biggest expenses to plan for after maternity is child care.
Planning even longer term, in Canada the average cost of post secondary is between $14,000 and $16,000 per year, including residence.
That could translate to $64,000 for a four-year degree program.
Rajan says the earlier you start to save, the more compound interest you can take advantage of.
Although it may feel counter intuitive, Rajan says future parents should update their will and insurance.
People should make considerations in regards to who would be the guardian of the child in their absence and at what age you would want them to receive any inheritance.
For those looking for more information to plan or budget, they can check out the budget calculator at Bromwich+Smith to get a head start.