4 Financial Considerations When Planning for Another Child

Finance columnist Deanne Gage shares the key financial things that are on her mind as she prepares to welcome her second child

Photography from iStockphoto.com

I’m expecting baby number two late this fall and am busy preparing for his/her arrival. We can reuse much of our daughter’s old things from her crib, car seat, layette and toys. But there are a few financial considerations on my list.

Figuring out maternity leave. I took a one-year maternity leave with our first-born but won’t be doing so this time around. As a self-employed professional, I no longer qualify for EI, so my plan is to take a few months and, for the remainder of the year, work part-time around our second child’s schedule.

Tightening up our budget. Starting this fall, we’ll be living on a reduced income with many of the same—and more—expenses. (Well, at least our daughter’s daycare fees will decrease by $400 a month starting in August.) We’ve been living on just my husband’s income for a while now and have reduced discretionary spending (a favourite of ours: eating out).

Collecting coupons. Sadly, the store where I used to buy 175 diapers for $20 is out of business. So now I’m sourcing alternate suppliers and stocking up on diaper and wipe coupons. Maybe I’ll try cloth diapers this time around.

Revisiting our life insurance. This can wait until the baby’s born, but it’s still on my mind. If something happens to my husband or me, is our insurance coverage an adequate amount to cover the day-to-day expenses of an additional child? If not, we may need to opt for a new policy (unfortunately, most existing policies don’t allow you to simply increase the amount of coverage). Even if we’re fine with our amount of coverage, we’ll still need to add our new child as beneficiary.

How did you plan financially for your subsequent child(ren)?

Deanne Gage has written about all matters financial since 1999. She writes, edits and strategizes out of her Toronto home that’s partially under construction. Besides money issues, she enjoys running fast, jazz music and drinking a quality glass of Merlot. Her two-year-old daughter is quite familiar with money: she borrows it from mom’s wallet for her toy cash register.

2 responses to “4 Financial Considerations When Planning for Another Child”

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