How much does it cost to have a baby in Canada?

First-year costs average $10,000-$15,000 for baby gear, diapers, formula/food, childcare, and extras. Birth itself is covered by provincial health insurance. Ongoing costs are $10,000-$15,000/year until childcare ends.

How much parental leave pay do you get in Canada?

EI pays 55% of your income up to ~$668/week (2024) for standard leave, or 33% for extended leave. Some employers top-up to 75-100% of salary. Quebec has its own QPIP program with different rates.

When should I start an RESP for my baby?

Open an RESP as soon as your baby has a SIN (within weeks of birth). The earlier you start, the more government grant money and compound growth you get. Even $50/month makes a big difference.

Financial Checklist Before Having a Baby in Canada

Having a baby in Canada costs roughly $10,000–$15,000 in the first year for gear, diapers, formula, and extras — and that’s before childcare, which runs $800–$2,000 per month depending on province (Quebec’s $10/day program being the dramatic exception). The birth itself is covered by provincial health insurance, but the real financial hit comes from the income drop during parental leave: EI pays just 55% of your earnings up to about $668 per week, meaning most families face a $2,000–$4,000 monthly income gap unless their employer offers a top-up.

The best time to prepare financially is before pregnancy, not after. Build your emergency fund to six months of expenses (you’ll be living on reduced income), lock in life insurance while you’re healthy and premiums are cheap, and join childcare waitlists early — in cities like Toronto and Vancouver, wait times of 12–18 months are common. Once baby arrives, get their SIN immediately, apply for the Canada Child Benefit (up to $648/month per child under six), and open an RESP to start capturing the 20% government match from day one.

Before Pregnancy

Financial Foundation

Step	Priority
Emergency fund	3-6 months expenses
Health check	Benefits coverage
Insurance review	Life, disability
Debt assessment	Pay down high-interest
Budget review	Current spending habits

Build Emergency Fund

Target
Before baby	3-6 months expenses
After baby	6 months+ recommended
Why more	Single income during leave

During Pregnancy

Checklist by Trimester

First Trimester
Review work benefits	Mat leave top-up?
Check EI eligibility	600 hours required
Start baby budget	Estimate costs
Review insurance	Life, disability

Second Trimester
Notify employer	Plan your leave
Apply for benefits	EI, employer programs
Start saving	For income gap
Research childcare	Waitlists are long

Third Trimester
Submit EI application	After birth
Buy essentials	What you actually need
Prepare budget	For mat leave income
Healthcare card	Arrange for baby

Parental Leave Benefits

EI Maternity/Parental Benefits

Type	Duration	Rate
Maternity (birth parent)	15 weeks	55% of income
Standard parental	35 weeks sharable	55% of income
Extended parental	61 weeks sharable	33% of income

2024 EI Maximums

Income Cap	~$63,200
Max weekly benefit	~$668 (standard)
Max weekly benefit	~$401 (extended)

Quebec QPIP (Different)

Type	Duration	Rate
Maternity	18 weeks	70%
Paternity	5 weeks	70%
Parental	32 weeks	70%/55%

Employer Top-Up

What to Check
Does employer offer?	Many do
Amount	Often to 75-100% salary
Duration	Varies (6-17 weeks common)
Requirements	Return to work period?

Budget for Baby

First-Year Costs

Category	Estimated Cost
Nursery/furniture	$1,000-$3,000
Stroller/car seat	$500-$1,500
Clothing (first year)	$500-$1,000
Diapers	$800-$1,200
Formula (if used)	$1,500-$2,500
Baby gear	$500-$1,500
Total first year	$5,000-$12,000

Ongoing Costs

Annual Cost	Range
Childcare (if used)	$10,000-$25,000
Food	$1,500-$2,500
Clothing	$500-$1,000
Healthcare (extras)	$500-$1,000
Activities	$500-$2,000

Childcare Costs by Province

Province	Monthly (Infant)
Ontario	$1,000-$2,000 (with subsidy)
BC	$800-$1,500 (with subsidy)
Quebec	~$200 ($10/day)
Alberta	$800-$1,500

$10/Day Childcare

Status
Federal program	Rolling out
Target	$10/day by 2025-26
Quebec	Already has it
Impact	Major savings

Government Benefits

Canada Child Benefit (CCB)

Maximum Monthly (2024-25)
Under 6 years old	$648.91
6-17 years old	$547.50
Reduced based on	Family income

CCB by Income Level (1 Child Under 6)

Family Income	Approx Monthly CCB
Under $36,500	$648 (maximum)
$50,000	~$580
$75,000	~$460
$100,000	~$350
$150,000	~$180
$200,000+	~$0

How to Apply

Step	When
Get baby’s SIN	After birth
Apply for CCB	With birth registration
File taxes	Both parents, each year
Payments start	Month after approval

Other Benefits

Benefit	Details
GST/HST Credit	Increases with children
Provincial benefits	Varies
Disability benefits	If applicable

Saving for Education (RESP)

Why Start Early

Start at	$150/Month	By Age 18
Birth	$150	~$64,000
Age 5	$150	~$40,000
Age 10	$150	~$24,000

Assumes 6% average return

Government Grants

Grant	Amount
CESG (basic)	20% match up to $500/year
CESG (additional)	Extra for low income
CLB	$500 + $100/year (low income)

RESP Strategy

Action
Open at birth	Start immediately
Contribute $2,500/year	Get max $500 CESG
At least $50/month	Something is better

Where to Open RESP

Provider	Type
Bank/credit union	Flexible
Robo-advisor	Low-fee, easy
Self-directed	DIY investing
Group RESP	Avoid (restrictive)

Insurance Review

Life Insurance

Need
Coverage	10-12x income
Type	Term usually best
Both parents	Even stay-at-home
Review	With each child

Example Calculation

Factor	Amount
Annual income	$80,000
Years to cover	10-15
Total needed	$800,000-$1,200,000
Term 20 cost	~$40-$80/month

Disability Insurance

Check
Work coverage	Often 60-70%
Own coverage	Consider supplementing
Definition	Own occupation preferred

Critical Illness

Consideration
Coverage	Lump sum if diagnosed
Children’s coverage	Often can add
Cost	Moderate

Prepare Your Budget

Income During Leave

Calculate
EI benefits	55% of income
Employer top-up	If offered
Partner income	If applicable
Total	Usually 50-100% of normal

Sample Budget Adjustment

Normal Income	On Leave
Combined $10,000/month
EI + top-up	~$6,500/month
Gap	$3,500/month
Cover from	Emergency fund/savings

Cut Before Baby Arrives

Review
Subscriptions	Cancel unused
Dining out	Will decrease anyway
Entertainment	Less time anyway
Save the difference	Build cushion

Estate Planning

New Parents Should Have

Document	Purpose
Will	Name guardian for child
Life insurance beneficiary	Update
Power of attorney	Both parents
Healthcare directive	Both parents

Guardian Designation

Critical
In your will	Name guardians
Discuss	With chosen guardians
Backup	Name alternates
Review	As children grow

Childcare Planning

Act Early

When	Action
During pregnancy	Join waitlists
Early	Tour facilities
Compare	Cost, quality, location
Backup plan	Have alternatives

Costs Planning

If Both Working
Childcare cost	$800-$2,000/month
vs One staying home	Lost income
Calculate	Net benefit of working

Tax Considerations

After Baby Arrives

Tax Benefit	Details
CCB	Apply immediately
Childcare expenses	Deductible
RESP contributions	Get grants
Medical expenses	Baby costs count

Childcare Expense Deduction

Rule
Claimed by	Lower-income spouse usually
Limit	$8,000/child under 7
Receipts	Keep all receipts

Timeline Summary

When	Action
Before pregnancy	Build emergency fund, review insurance
First trimester	Check benefits, start budget
Second trimester	Apply for leave, join childcare waitlist
Third trimester	Baby gear, finalize leave
After birth	Get SIN, apply CCB, open RESP
First year	Review insurance, make will

The Bottom Line

The financial impact of a baby is front-loaded — the first two years are the most expensive due to the combination of reduced parental-leave income, gear purchases, and childcare startup costs. Offset it by saving aggressively before the baby arrives, claiming every benefit you’re entitled to (CCB, childcare expense deduction, GST/HST credit increase), and opening an RESP early to maximize years of government grants and compound growth. Even $50 per month into an RESP from birth can grow to over $25,000 by age 18.