A new baby is life-changing — including financially. This guide covers every money task to complete before and after your child arrives so nothing falls through the cracks.
The New Parent Financial Checklist
| Task | When | Priority |
|---|---|---|
| Apply for Canada Child Benefit | After birth | 🔴 High |
| Apply for EI parental leave | Before due date | 🔴 High |
| Register birth and get SIN for baby | After birth | 🔴 High |
| Open RESP account | Within first year | 🟡 Medium |
| Update life insurance | Before birth | 🔴 High |
| Write or update will | Before birth | 🔴 High |
| Update beneficiaries on RRSP/TFSA/insurance | Before birth | 🔴 High |
| Budget for childcare costs | During pregnancy | 🟡 Medium |
| Apply for provincial baby bonuses | After birth | 🟡 Medium |
Canada Child Benefit (CCB)
The Canada Child Benefit is a tax-free monthly payment from the federal government.
2026 CCB Amounts (Maximum)
| Child’s Age | Maximum Annual | Monthly |
|---|---|---|
| Under 6 | $7,787 | $649 |
| Age 6–17 | $6,570 | $547 |
Income Phase-Out
CCB is reduced based on net family income:
| Net Family Income | Reduction |
|---|---|
| Under $36,500 | No reduction (full benefit) |
| $36,500–$79,087 | 13.5% of income above $36,500 (1 child) |
| Over $79,087 | Further reduction rate applies |
A family earning $80,000 with one child under 6 receives roughly $5,000–$6,500/year.
How to Apply for CCB
Apply online through CRA My Account or complete Form RC66.
Apply as soon as your baby is born — benefits start from the birth month but only once you apply. You cannot receive retroactive CCB before your application date.
You must file your taxes every year to continue receiving CCB.
Parental Leave (EI Benefits)
Types of Parental Leave Benefits
| Benefit Type | Who Gets It | Weeks | Rate |
|---|---|---|---|
| EI Maternity | Birth parent only | 15 weeks | 55% of earnings |
| EI Parental (Standard) | Either/both parents | 35 weeks | 55% of earnings |
| EI Parental (Extended) | Either/both parents | 61 weeks | 33% of earnings |
Total maximum: 50 weeks standard or 76 weeks extended combined between both parents.
Non-Transferable “Use It or Lose It” Weeks
Each parent has a 5-week non-transferable parental benefit block to encourage both parents to take leave. If one parent does not take their 5 weeks, those weeks are lost.
Applying for Parental Leave
- Apply to Service Canada within 4 weeks of stopping work (not after the baby arrives)
- You need your ROE from your employer
- Standard 1-week waiting period applies once (not to both parents)
- Apply at canada.ca/ei
Employer Top-Ups
Many employers supplement EI to bring you closer to full pay. Check your employment contract — you may receive 75–100% of your salary during leave.
Getting Your Baby’s SIN and Documents
| Step | How |
|---|---|
| Register birth | At hospital or provincial vital statistics office |
| Apply for birth certificate | Through provincial vital statistics |
| Apply for SIN | Service Canada (free, required for RESP, CCB) |
| Apply for passport | (Optional) Passport Canada |
Your baby needs a SIN to open an RESP account and for you to receive CCB.
RESP: Free Money for Education
The Registered Education Savings Plan (RESP) is the most powerful savings vehicle for a child’s education.
How the CESG Works
| You Contribute | Government Adds (CESG) | Total |
|---|---|---|
| $2,500/year | $500/year (20%) | $3,000/year |
| $50,000 lifetime | $7,200 lifetime max | $57,200+ |
The Canada Education Savings Grant (CESG) is 20% on the first $2,500 per year — completely free money. The lifetime CESG maximum is $7,200 per child.
Low-Income Families: Additional Grant (ACESG)
| Net Family Income | Additional CESG on First $500 |
|---|---|
| Under $55,867 | 20% extra ($100 additional) |
| $55,867–$111,733 | 10% extra ($50 additional) |
Canada Learning Bond (CLB)
If your family income is below the first CCB threshold, your child automatically qualifies for the Canada Learning Bond — up to $2,000 in free RESP contributions from the government with no contribution required from you.
Where to Open an RESP
| Provider | Type | Pros |
|---|---|---|
| Wealthsimple | Online broker | No fees, easy setup |
| EQ Bank | Bank | HISA option |
| TD, RBC, etc. | Bank | In-person support |
| Questrade | Broker | Low-cost ETF investing |
Avoid group RESP plans (also called scholarship plans or pooled plans). They have high fees, rigid rules, and restrictions on how funds can be used.
RESP Contribution Strategy
- Contribute $2,500/year to maximize the annual CESG
- If you missed prior years, you can catch up on CESG for 1 prior year in any given year (max $5,000/year triggers $1,000 CESG)
- After $2,500, there is no grant on additional contributions (though they still grow tax-sheltered)
- Room accumulates from birth to age 17
Childcare Costs in Canada
Childcare is often a family’s second-largest expense after housing.
Average Annual Childcare Costs by Province (2026)
| Province | Average Annual Cost | Government Subsidy |
|---|---|---|
| Quebec | ~$10–$15/day ($2,500–$4,000/yr) | Heavily subsidized ($10/day spaces) |
| Prince Edward Island | ~$10/day | Federal agreement |
| Nova Scotia | ~$10/day | Federal agreement |
| Ontario | ~$20–$30/day ($5,000–$7,500/yr) | Subsidized spaces available |
| BC | ~$20/day ($5,000–$6,500/yr) | Federal agreement |
| Alberta | ~$25/day ($6,500–$8,000/yr) | Federal agreement |
| Manitoba | ~$15/day ($4,000–$5,000/yr) | Federal agreement |
Federal $10/day childcare: Canada is rolling out the national $10/day childcare program. Costs vary widely by province implementation and waitlist availability.
Childcare Tax Deduction
Childcare expenses are tax-deductible for the lower-income spouse:
| Child’s Age | Maximum Deduction |
|---|---|
| Under 7 | $8,000/year |
| Age 7–16 | $5,000/year |
| Child with disability | $11,000/year |
Life Insurance: Protecting Your Family
When you have a child, life insurance becomes essential — not optional.
How Much Coverage Do You Need?
A simple calculation:
| Factor | Amount |
|---|---|
| Income replacement (10×) | $X per year × 10 |
| Outstanding mortgage | $X |
| Education fund ($50K–$100K) | $50,000–$100,000 |
| Total | Add them up |
Example: $70,000 income + $400,000 mortgage + $100,000 education = ~$1.1M coverage.
Term vs Permanent Life Insurance
| Type | Cost | Duration | Best For |
|---|---|---|---|
| Term (20-year) | $30–$60/month | 20 years | Most families |
| Permanent (whole life) | $200–$400/month | Lifetime | Estate planning |
Recommendation: A 20-year term policy covers your child through school. Both parents need coverage, not just the income earner — the stay-at-home parent’s unpaid labour (childcare, housekeeping) has real replacement cost.
Update Your Will and Designations
Why This Is Urgent
Without a will:
- A court decides who raises your child
- Your assets may be distributed in ways you did not intend
- The process is slow and expensive for your family
What Your Will Needs
| Component | Action |
|---|---|
| Guardian designation | Name who raises your child if you both die |
| Executor | Name who manages your estate |
| Trustee | Name who manages money for your child until adulthood |
| Distribution | Specify at what age child receives money (18? 25?) |
Update Beneficiaries
| Account/Policy | Action |
|---|---|
| RRSP | Update beneficiary (usually spouse first, then estate) |
| TFSA | Update successor holder or beneficiary |
| Life insurance | Update beneficiary |
| Group benefits | Update at HR |
| Pension | Check beneficiary rules |
Do not name a minor child directly as beneficiary on RRSP/TFSA/insurance. The court will manage funds until they turn 18. Use a trust or testamentary trust via your will instead.
Provincial Baby Benefits
Most provinces have additional benefits beyond the federal CCB:
| Province | Program | Amount |
|---|---|---|
| Ontario | Ontario Child Benefit | Up to $1,680/year |
| Alberta | Alberta Child and Family Benefit | Up to $2,985/year (2 children) |
| BC | BC Child Opportunity Benefit | Up to $1,600/year (under 6) |
| Quebec | Family Allowance | Varies by income |
| Manitoba | Family Tax Benefit | Up to $2,985/year |
Apply when registering for the federal CCB — provincial benefits are often automatically triggered.
First-Year Baby Budget Template
| Category | Monthly Estimate |
|---|---|
| Diapers and formula | $200–$400 |
| Clothing | $50–$100 |
| Childcare (when leave ends) | $500–$1,500 |
| Baby gear (one-time) | $1,000–$3,000 |
| Medical/dental | $50–$100 |
| CCB income (offset) | −$500 to −$650 |
| EI parental (offset) | Varies |