Personal Finance

Finances squeezed - baby

  • Last Updated:
  • Oct 16th, 2017 3:47 pm
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[OP]
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Mar 23, 2016
460 posts
145 upvotes

Finances squeezed - baby

We just had a healthy baby boy, but I'm starting to get really stressed about finances. I was just working casually and have asked for a month off. We are trying to economize what to spend but it's quite hard. We're even using cloth diapers but I don't know how much longer I can keep that up.
Anyone know how much extra babies actually cost? :P
61 replies
Deal Expert
Aug 22, 2011
15155 posts
4231 upvotes
Ottawa
Cost is all relative to how you budget and what the needs are.
Daycare cost from 1yr-4yr was ~$1500/month!
Deal Addict
Nov 22, 2015
2187 posts
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springdays wrote:
Oct 4th, 2017 4:32 pm
We just had a healthy baby boy, but I'm starting to get really stressed about finances. I was just working casually and have asked for a month off. We are trying to economize what to spend but it's quite hard. We're even using cloth diapers but I don't know how much longer I can keep that up.
Anyone know how much extra babies actually cost? :P
Go back to work?
Deal Addict
Dec 16, 2005
2609 posts
653 upvotes
springdays wrote:
Oct 4th, 2017 4:32 pm
We just had a healthy baby boy, but I'm starting to get really stressed about finances. I was just working casually and have asked for a month off. We are trying to economize what to spend but it's quite hard. We're even using cloth diapers but I don't know how much longer I can keep that up.
Anyone know how much extra babies actually cost? :P
Congrats.

I think if you want really useful advice youll need to post a budget/income, etc.

In general if you just had a baby and already think expenses are tough, it only gets worse

At the beginning, the kid is the cheapest. Diapers are only $30 a month on average. Clothes can be had very cheap from places like once upon a child. Food is free if you breast feed.

Only bigger expenses are car seats, strollers, furniture. But you can save on those too. Strollers can be cheap, just don't go for those crazy brand name ones. $200 can get you a decent stroller especially if you look used. I got a used umbrella stroller for $9 which retailed for $75. Ikea has cheap furniture or look for used. Car seat is the only thing you really can't go used on. Look for deals. My sister got a stroller and car seat combo for $200.

Once they get to day care, that's where you will be paying real money. My kid at 13 months was anywhere between $1800 to $2400 per month for full time day care. Day care gets cheaper as they grow older.

If that is an issue, stay home. There are plenty of free play groups to socialize your kid.
Deal Addict
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Mar 23, 2008
4440 posts
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Edmonton
Without knowing your situation, it's hard to give any real advice. There's two sides to your finances. Money coming in, and money going out...

For money coming in, asking for time off obviously isn't going to help that. Can you make that up any other way? Working at something that you can do from home, etc? Making sure you collect any money you can from government sources (EI, child benefits, etc).

For money going out, monitor it closely. See where your money is going. Figure out what your priorities are, and stick with them.

C
Newbie
Jun 30, 2016
15 posts
5 upvotes
If you've applied for the government Canada Child Benefit that should be an extra $500/month for exactly this situation. From experience a new baby doesn't have alot of needs at first so not sure what is causing the major financial crush other than you need to work and make money to support yourself at the same time.
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Mar 31, 2009
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I know you're not looking for a lecture, and it's politically incorrect to say stuff like this, but it sounds to me like maybe you shouldn't have had a kid that you can't really afford.

If I want a dog, I make sure I can afford the costs of dog ownership.

If I want a car, I make sure I can afford the costs of car ownership.

If I want a fancy car, I darn well make sure I can afford the costs of fancy car ownership.

But if someone wants a kid, they have the kid, and then think about the costs later after realizing it's expensive?

You probably need to go back to work. Otherwise, you probably need to cut all your other discretionary spending to the bone, because basically you made the choice to have a kid and that takes a lot of money. As I say to almost everyone, because it applies to almost everyone, you could probably save a lot of money by not going to restaurants, and not buying coffees at Tim Hortons/Starbucks. I say this, because it applies to almost everyone, and I see people making minimum wage spending huge percentages of their income on this kind of stuff. So if you're like most people, you can probably save hundreds of dollars per month by never going to restaurants, never buying overpriced coffee, and instead making the stuff yourself. I'm proud to say that I've only gone out to a restaurant only twice in 2017, and instead buy better quality food that I make at home, for far less money.

Personally, I made the choice to not have kids, a big reason for that is because they are so expensive and I'd rather put my money to other things. To me, the enjoyment per dollar equation works out badly, considering how expensive kids are.
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Mar 23, 2008
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Edmonton
unknownone wrote:
Oct 4th, 2017 6:21 pm
I know you're not looking for a lecture, and it's politically incorrect to say stuff like this, but it sounds to me like maybe you shouldn't have had a kid that you can't really afford.

If I want a dog, I make sure I can afford the costs of dog ownership.

If I want a car, I make sure I can afford the costs of car ownership.

If I want a fancy car, I darn well make sure I can afford the costs of fancy car ownership.

But if someone wants a kid, they have the kid, and then think about the costs later after realizing it's expensive?

You probably need to go back to work. Otherwise, you probably need to cut all your other discretionary spending to the bone, because basically you made the choice to have a kid and that takes a lot of money. As I say to almost everyone, because it applies to almost everyone, you could probably save a lot of money by not going to restaurants, and not buying coffees at Tim Hortons/Starbucks. I say this, because it applies to almost everyone, and I see people making minimum wage spending huge percentages of their income on this kind of stuff. So if you're like most people, you can probably save hundreds of dollars per month by never going to restaurants, never buying overpriced coffee, and instead making the stuff yourself. I'm proud to say that I've only gone out to a restaurant only twice in 2017, and instead buy better quality food that I make at home, for far less money.

Personally, I made the choice to not have kids, a big reason for that is because they are so expensive and I'd rather put my money to other things. To me, the enjoyment per dollar equation works out badly, considering how expensive kids are.
Not all kids are planned. And the return policies suck.

C
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Mar 9, 2012
740 posts
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KITCHENER
springdays wrote:
Oct 4th, 2017 4:32 pm
We just had a healthy baby boy, but I'm starting to get really stressed about finances. I was just working casually and have asked for a month off. We are trying to economize what to spend but it's quite hard. We're even using cloth diapers but I don't know how much longer I can keep that up.
Anyone know how much extra babies actually cost? :P
Are you at least breastfeeding? That should save a lot of money. Diapers do add up quickly. We tried cloth diapers for our second child, but really not worth it in the end. Someone said $30/month for diapers, but that is way on the low end, especially of the kid is pooping every couple hours.

Obviously the biggest factor is child care -- loss of income due to watching your child, or paying someone to watch the child. Since gather you weren't the primary bread winner, you could get a job that is different than your spouse, even if it's part time.

Also, if you haven't done so already, as someone else mentioned, apply for the Child Tax Benefit. Depending on the province, you might get more too. (Ontario gives extra I know -- plus other benefits like GST should increase with one child)
[OP]
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Mar 23, 2016
460 posts
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Thanks (most people) for your comments. I just have a few moments but I lost a job moving from AB but that was unexpected - hence the casual work.
With the CTB, does the Government actually pay us?
Deal Fanatic
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Nov 19, 2004
7143 posts
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Not a lot of extra costs at this stage. Diapers are the biggest added cost, assuming you are breastfeeding and not buying formula.

If things are tight, then probably the best advice is to make sure one parent is working.
Deal Addict
Jul 18, 2016
1698 posts
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Minimal additional costs, but lost income is key. I don't understand your income situation now versus where you were before your child, but If your income is not adequately offset by the Canada Child credits, this will leave you short of money.

No passing judgement, guys. Kids happen. Unexpected circumstances happen that effect our income. You can't plan this one perfectly.

OP, in your situation, all you can do is make certain you are receiving all government credits. Assuming your partner is working, minimize expenses as much as possible. Aside from this, get working as soon as you can. I genuinely believe in this day and age, women are happier if they get active in their career as quickly as possible. However, your child comes first!
Deal Addict
Oct 16, 2013
1749 posts
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Toronto
Concerning "Kids happen" statements:

There are many outs from parenthood for women that one can take from contraceptives, morning after pill, abortion to adoption services to name some.

Kids just don't happens unless the woman wants them. If one refuse to use the tools available, thats on the women.

Breaking a leg or getting brain cancer is unexpected while carrying a fetus to full term is not.
Last edited by raichu1 on Oct 6th, 2017 11:31 pm, edited 4 times in total.
Sr. Member
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Mar 9, 2012
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KITCHENER
springdays wrote:
Oct 5th, 2017 4:38 pm
Thanks (most people) for your comments. I just have a few moments but I lost a job moving from AB but that was unexpected - hence the casual work.
With the CTB, does the Government actually pay us?
The government gives tax free money to parents with children. Depending on your income and province, it will vary. It goes directly into your bank account. Go to "My Account" at the CRA, apple for benefits, and make sure you fill out the direct deposit.
Newbie
Dec 7, 2016
48 posts
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Clothing, toys and other baby items can be had cheaply from yard sales and places like GoodWill, Salvation Army etc.

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