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Dad taking selfie with son and daughter

Costs of raising a child

Having a baby is a very exciting experience, but what some may not realize is how much money is needed to raise a child each year. To show how the costs of raising a child add up, we’ve broken down a few child-related expenses to consider.


On average, a Canadian spends approx. $10,000-$15,000 each year raising a child. From diapers to clothing, activities, braces and post-secondary education, the costs start to add up year after year. And that’s just for one child. If you have twins or multiple kids, that amount may double, triple or more!

When planning on having a child, money should be a factor you consider. Understanding your finances and how much you’ll need to raise a child can help you determine if the time is right now, or maybe not for a few more years.

To show how the costs of raising a child can add up, we’ve broken down a few child-related expenses to consider.

One-time costs in the first year:

A car seat, stroller, crib, change table and baby monitor are just a few of the items you’ll need to purchase when having a baby.  All big-ticket items with larger price tags. It’s recommended you start putting money aside during your planning stage to cover these expenses when it comes time to purchase. Also, consider adding these items to your baby shower registry and asking family and friends to contribute to the larger items to offset costs. Purchasing second hand is also a great option for reducing costs; however, if you do this remember to look at expiration dates.

Food, diapers & clothing:

Baby necessities such as diapers, food and clothing can have a large impact on your monthly budget. On average, a baby uses more than 2,700 diapers in its first year. With diapers costing an average of $0.20-0.25 each you’re looking at roughly $550 a year in just diapers – that’s not including baby wipes, diaper rash cream, etc.

Additional costs can also include formula and baby food depending on your approach to feeding your baby. Whether choosing to breastfeed or not, formula feeding should be considered when factoring money as sometimes, even if planning on breastfeeding, unexpected factors may not allow for you to do so.  As well, as your child grows, they’ll begin eating the same foods as you and though you may not be buying baby food anymore your weekly grocery budget will increase.

Childcare:

Depending on your child’s age, you may pay anywhere from $250-$1,200 a month for childcare. Typically, the younger the child is means the more you’ll pay for childcare. Something to be aware of is that many childcare providers only take a few infants and young children at a time and it’s recommended you begin looking and putting your name on a waiting list as soon as you can to secure a spot for when you return to work.

Post-secondary education:

Though university may be 18 years away, it’s never too early to start saving for your child’s post-secondary education. Registered Education Savings Plans (RESPs) are taxed-deferred savings accounts and allow you to contribute as much money as you like up to a lifetime maximum of $50,000. To help your money grown faster, the federal government also contributes a percentage of money to the RESP each year based on your contributions. Check out the ‘What to know when it comes to RESPs’ blog to learn more.

Costs related to raising a child may vary per family due to each unique family situation. To understand how much raising a child may cost you, we recommend completing Money Sense’s Costs of Raising a Child Calculator.

Whether you’re thinking about having a child now or in the future, it’s important you understand the costs related to raising a child and create a financial plan.  Talk to a financial advisor today to get your plan started.

Parents – what financial advice do you have for other parents, based on your experiences? Share in the comments below!

income tax form

Smart ways to spend your income tax refund

It may be tempting to spend your income tax refund on a new pair of shoes or a fancy dinner, but that good feeling of splurging is only temporary. Consider spending your income tax refund using one of these options.


According to the Canada Revenue Agency, close to 90% of Canadians who have filed their 2017 income taxes received a refund, with the average refund being $1676. Do you anticipate receiving a refund this year? If so, how do you plan on spending it?

It may be tempting to use all of this money to splurge on yourself but that good feeling you get from splurging is only temporary. Here are a few smart ways to spend your income tax refund – helping you feel financially-well now and in the future.

Pay off debt

Have a balance on your credit card or line of credit? Working to pay off your student loan or car loan? Consider using your tax refund to reduce or eliminate this debt. Putting towards your debt will not only reduce the amount of debt you have but also decrease/eliminate the interest you’re paying on this debt.

Emergency savings fund

Are you prepared for an unexpected emergency such as job loss, injury or illness? If your car engine went on you tomorrow, do you have money set aside to have it fixed? An emergency savings fund ensures you’re prepared for life’s unexpected curveballs. Use your refund to start or contribute to an emergency savings fund. Unsure how much you may need? Check out our Importance of having an emergency savings fund blog to help you out.

Extra payment on your mortgage

Some mortgages have the option to make extra payments allowing you to pay down your mortgage faster – check your mortgage agreement to see what extra payment options you may have. Consider using your refund to make an extra payment on your mortgage, which will be applied directly to the principal amount. This will not only reduce this debt faster but also reduce the amount of time you’ll be paying off your mortgage.

Put into an RRSP

Retirement may seem far away, but it will be here before you know it. Help reach your retirement goals quicker by putting your refund into a Registered Retirement Savings Plan (RRSP). Check out our Retirement Planner Calculator to see if you’re on track for your retirement goals.

Put towards your child’s education

Post-secondary education costs for your child can add up quickly – will you be ready? Consider putting your refund into a Registered Education Savings Plan (RESP) to help pay for the costs of this education. Our RESP Calculator can help you figure out the cost of your child’s post-secondary education and map out the savings required – through individual contributions and government grants.

Save the money in a Tax-Free Savings Account

Tax-free savings accounts (TFSA) allow you to save money in an investment tax-free, with a maximum yearly contribution limit of $5,500. These accounts are great tools for saving money for short and long-term goals and give you the flexibility to withdraw the money you save at any time. Saving for a family vacation or a new car – consider using a TFSA to get you started. Check out our TFSA Calculator to see your potential benefits to investing your tax refund into a TFSA.

However you choose to spend your tax refund, be sure to do so wisely. A new pair of shoes may be nice, but your return on investment would not compare to using one of the options above. We’d love to chat and see which option may be best for you. Contact us today!

young family in park

What to know when it comes to RESPs

A Registered Education Savings Plan (RESP) is a great investment allowing you to put money aside for your child’s education. Here are a few things to know when it comes to RESPs.


When looking at your child’s future, it may become overwhelming especially when you start thinking about all of the costs related to their post-secondary education. A Registered Education Savings Plan (RESP) is a great investment to help you put money away for your child’s education.

What is a RESP?

A RESP is a tax-deferred, savings account that can be used to save money for your child’s post-secondary education. You can contribute as much as you’d like (up to a lifetime maximum of $50,000) and watch it grow.

To help your money grow faster, the federal government also contributes a percentage of money to the RESP each year based on your contributions.

What types of RESPs are there?

There are two different types of RESPs available – family plans and individual plans.

A family plan is available for families with multiple children, allowing you to add multiple beneficiaries to one plan.

An individual plan can be set up for one beneficiary, and can only have one beneficiary. A common scenario for an individual plan would be in a blended family situation. More details on the two plans can be found here.

When is the best time to start saving for a child’s education?

Starting early, and contributing often, is key. The sooner you start to save, the sooner you’ll start earning interest on your money and receiving federal contributions to your RESP.

If you don’t start early though, it’s never too late to start. There’s no better time to start than today. By just saving as little as $5 each week, it can add up quickly and help your child in their post-secondary dreams.

How much should I save?

Conexus’ education savings calculator can help you figure out the cost of your child’s post-secondary education and map out what type of savings you’ll need to help meet your financial goals.

I’m not sure I can afford a RESP. Is there a minimum amount I must contribute each month or yearly?

Some types of RESPs have no minimum deposit requirements, while other RESPs do. It’s important you talk to a financial advisor to determine what RESP works best for you and what you can afford, whether monthly or yearly.

Where can I go for more information or set up a RESP today?

To learn more on RESPs visit the Government of Canada’s website.

To determine what RESP is best for you and set up an RESP, talk to your financial advisor today.

 

Have a question regarding Registered Education Savings Plans? Ask below in the comments section or contact us today.

Bowl of ramen noodles

It doesn’t just need to be ramen noodles

Money can be stressful when you’re a student but that doesn’t mean you need to live off ramen noodles. We sat down with Braden, a University of Saskatchewan student, to learn more about how he manages money while going to school.


We all know post-secondary education can be quite expensive. In the 2016-17 academic year, a Canadian undergraduate student paid, on average, $6,373 in tuition. And that’s not including the additional costs related to textbooks, school fees and living expenses.

When having the #MONEYTALK with students across the province, we heard over and over the challenge of managing money while going to school. What can a student do to reduce money-related stress caused by tuition and living expenses?

We recently sat down with Braden C., a 3rd-year University of Saskatchewan student and Conexus member, who told us how he manages money while being a student.

Tuition can be expensive. How have you been able to manage the costs of tuition?

My parents have helped me out greatly when it comes to paying for tuition. They’ve been putting money into an Registered Education Savings Plan (RESP) since I was born, knowing I would need it at this point in my life. This has definitely relieved a lot of stress when it comes to paying for school.

That’s great to hear! What else can a student do to help cover the cost of tuition or save money for things such as textbooks?

Scholarships are a great way to reduce your tuition costs. There are many different scholarships available from the schools, local businesses, etc. It can take some time to apply but can be worth it in the end by offsetting some of the costs you need to pay.

When it comes to textbooks, a great way to save money is buying used. For example, the U of S has a program where you can sell your textbooks back to the store. Often you can find a used textbook at a lower price than a new book and from my experience, many of the used books look like new.

What about other expenses such as living costs – how do you make or save money for all of the additional expenses you face?

To allow me to focus on my studies during the school term, I only work during school breaks, such as the summer, and put the money I make into savings. I work as many hours as I can in the summer to provide enough money I’ll need for the eight months I’m in school. I know not everyone can do this, and some may need to work part-time while going to school, but I recommend putting as much as you can into savings during the off months so you can work a bit less during the school term.

Are there any tools you use to help you manage your money?

I use several tools including online banking and Conexus’ Personal Financial Management tool. It allows me to set budgets and track how much I spend relative to those budgets. Each month, I look at what I spent in the previous month and make decisions and changes based on what I think will be coming up in the next month. For example, if I know a band I want to see is coming, I adjust my budget so that I have some money set aside for entertainment. This may mean I don’t eat out a couple of times that month, but I’m also not going over my budget.

What are the biggest challenges you face as a student with your money?

My biggest challenges with money are probably in the area of groceries. When I know the upcoming week is going to be busy for me, I tend to buy foods that require little to no preparation. I have found, over the past three years, these meals are usually less healthy for me and also cost a little bit more than if I were to buy basic ingredients and make the meals from scratch. I also tend to impulse-buy things when I have cravings.

What tips do you have for other students that are needing to manage their money while going to school?

The biggest thing is to set a budget and track your spending. When you are able to see where your money is going, you can get a better understanding of your needs but also find areas where you maybe don’t need to spend so much such as eating out or buying coffee.

 

Thanks Braden! Money can be stressful when being a student but that doesn’t just mean you need to live off of ramen noodles. With a bit of understanding and planning, you can set goals, budget and take control of your finances. Here are a few more ways students can save money:

  • Taking advantage of school discounts. There are many places on campus as well as local businesses that offer students a discount by showing their student card.
  • Walking or taking the bus to school. You can save money on gas and parking!
  • Using loyalty reward program cards for places you shop at frequently. For example, Superstore has a PC Plus program that allows you to earn points you can use to take money off your next grocery bill – and it’s free.
  • When shopping for necessities such as groceries, make your meal plans based on what is on sale. Sometimes you may need to buy in groups, but then that just means you can use for another meal the next week.

What other tips do you have for managing your money while going to school? We’d love to hear them – share in the comments below.