Becoming a parent is one of life’s most incredible experiences, and it can also be a financial wake-up call. When my partner and I welcomed our kiddo Sunny into the world (two weeks into lock-down due to the Covid-19 Pandemic I might add!), I thought we had a decent handle on what to expect. We got some things right—really right—but there were plenty of moments when we realized just how unprepared we were. Becoming parents coupled with the uncertainty of life during a pandemic was a lot to manage and it definitely caused some challenges for us financially.  If I could go back and have a heart-to-heart with my pre-baby self, here’s what I’d say about budgeting for a baby (spoiler alert: expect the unexpected!).

What we got right.

1. Crowdfunding postpartum doula care.

One of the best decisions we made was asking friends and family to contribute to a postpartum doula care fund instead of giving us baby clothes or toys. We set up a simple fund alongside our gift registry (with the basics) and shared it with the baby shower list. It felt a little unconventional and slightly uncomfortable, but the support we received was incredible. Those first few months of professional care and support were invaluable—and absolutely worth it. It also led to the beginning of Brood so… well worth it. 

2. Asking Family to Support With Big-Ticket Items.

We’re so grateful that family members wanted to help us prepare for Sunny’s arrival. Instead of smaller, less practical gifts, we asked them to chip in for things like a stroller, car seat, and crib. It made such a difference to have these big-ticket items covered. Here is a list of things our Brood doulas think are essential, and what to buy, borrow and skip!

3. Starting a RESP Immediately.

As soon as Sunny was born, we opened a Registered Education Savings Plan (RESP). Even though it felt early, starting small contributions right away helped us get into the habit of saving. Plus, the government’s matching contributions added a nice boost to Sunny’s future education fund. We decided to max out the contribution room, as the government matches up to a certain amount per year (it changes, so check with a Vancity advisor or the CRA for yearly updates!) – read: FREE MONEY!!! 

4. Planning for Benefits and Affordable Childcare.

This one was a bit of a lucky break partnered with some smart choices: I strategically took a job two years before we started trying to conceive that offered fantastic benefits, generous maternity leave, and access to a $10/day childcare program. I didn’t fully appreciate it at the time because on paper it was a major step down in pay for me and my career, but it saved us tens (if not hundreds) of thousands of dollars in childcare and health expenses over the next 5 years. This is not possible for everyone, and I appreciate how lucky we truly were.

What we could have done better.

1. Not Budgeting or Planning Early Enough.

While we nailed some big wins, we didn’t really start thinking about money until we were already pregnant. We didn’t sit down to plan our baby-related expenses in advance, which meant we were playing catch-up during a time when we really didn’t need the extra stress. If I could go back I would have started thinking about and budgeting when we were trying to conceive, especially for the basics, and what if we needed fertility treatments?! Things add up quickly, and it would have been great to start earlier. 

2. Assuming Baby Feeding and Lactation Was Free.

I’d always heard that nursing was “natural and free”, so I assumed that would be our path. What I didn’t anticipate was needing formula—and how expensive it could be. We didn’t budget for it, which added unexpected strain to our finances in those early months. We spent hundreds of dollars on formula and equipment like breast pumps, the Haaka and other things to support me through my feeding journey. The big lesson? Feeding your baby is NOT free, no matter how you do it. Here is a list of things you might want to consider expense-wise for feeding!

3. Not Considering a New Family Car.

We thought our car would be fine for family life, but as soon as we installed the car seat, it became clear we needed something bigger and safer. We had a dog, a baby and all the gear that goes with it, so we decided that we wanted to upgrade to a new (used to us) SUV. The expense of upgrading our vehicle hit us hard, and we weren’t prepared. Take stock of all the things around you including your living situation, vehicles or commuting plans as these things can be major expenses.

4. Overbuying Baby Clothes.

Like many new parents, I got a little too excited about baby clothes and all the cute little things for his new life. I bought ahead, thinking I was being practical, but I didn’t account for how quickly Sunny would grow or how the seasons would change. We ended up with clothes that didn’t fit or weren’t seasonally appropriate. For example, I had bought a bunch of winter stuff for the year ahead, but he was WAY too tiny to fit into any of them and then the next year he had outgrown them. If I had to do it again I would get hand-me-downs, and borrow or buy things as I needed them, instead of in advance. It was nice to get a few new things, but my kid has for the most part lived in other people’s seconds for the last few years and it’s great! Then we hand them down to the family who needs them next.

5. Skipping a contingency fund.

This one stung the most: we didn’t build an emergency fund and to be honest, I didn’t have a personal one at all, other than my RRSP’s which I didn’t want to dip into. Although we both had a little bit of savings, it wasn’t nearly enough. And then when my partner lost his job during the pandemic, it was a tough reminder of why financial cushions are so important. We were juggling unexpected expenses and reduced income (just my maternity leave top-up!) at the worst possible time. At that point, I was even more grateful to have a job that provided some top-up to my parental leave!

6. Not buying enough used.

I’ll say this over and over again! Looking back, we could have saved so much money by buying more used items. We splurged on a lot of new baby gear, only to realize later that gently used options would have worked just as well for a fraction of the price. I would have gotten the fancy strollers, car seats and big ticket items gently used on Facebook Marketplace or through our parent communities. Well worth the savings!

How our FREE Wealthy Beginnings course can help you avoid these mistakes.

If I’ve learned anything from our experience, it’s that financial planning before having a baby can make all the difference. That’s why we created Wealthy Beginnings, an online course designed to guide families through the financial realities of family building—from conception to kindergarten.

Here’s what the course offers:

• Fertility and Conception Planning: Learn how to budget for fertility treatments and alternative family-building options with expert advice from practitioners like Dr. Laura Erwin and Vancity advisors.
• Prenatal Finances and Baby Budgeting: Understand how to maximize benefits, plan for parental leave, and budget for everything from baby gear to postpartum care.
• You and Your Child’s Future: Gain tools for long-term financial planning, including saving for education, managing childcare costs, and balancing personal financial goals with parenthood.

We designed this course to help families like ours avoid the financial missteps we made and feel confident about their future. With expert insights, actionable strategies, and a supportive community, Wealthy Beginnings is here to help you create a stable, joyful start for your family.

Ready to take the first step? Enroll in Wealthy Beginnings today. Let’s navigate this journey together.