Thompson said she does have a line of credit she could have dipped into had she not been able to get family support, but she wasn’t willing to take on debt to stay off work longer. Janet said she and her husband are willing to take on debt “within reason” if means her not going back to work early. Employer top up programs are voluntary and those that do offer them can often offer much less.īoth mothers suggest expectant parents start saving early and plan for the unexpected. Janet was topped up to 95% of her gross salary for six weeks and Thompson received the equivalent of 90% of her salary for six months.
Babycenter family finances plus#
The Galvins and Thompson received the maximum benefits plus an additional top ups from their employers. The basic rate is 55% of weekly earnings, up to a maximum of $45,900. Fifteen weeks of that is employment insurance (EI) maternity benefits and 35 weeks is EI parental benefits, which either parent is eligible for.įor 2012, the maximum weekly benefit is $485. Mothers can receive up to 50 weeks of government benefits if their income has been reduced by at least 40% after having a baby. What I got from the government didn’t even pay my rent or bills,” she said. “Really, it was okay until my top up ended. She also returned to work four-and-a-half months earlier than planned.
Babycenter family finances full#
Nurse and single-mother Maria Thompson intended to fund a full mat leave with savings but came up short.ĭespite saving almost $5,000 during her pregnancy, Thompson reluctantly had to relocate 500 kilometres and move back in with her parents about seven months into her mat leave. Forty-six per cent of those surveyed said they would be comfortable taking on debt to finance their new family. The poll found 72% of respondents expect to use savings to start a family and plan for a year-long parental leave, compared to 28% who would have to rely solely on other sources like the generosity of family or friends, loans or credit cards. Most Canadians hope for a similar experience, according to a recent TD survey. Other than fewer nights out on the town, the Galvins’ standard of living hasn’t changed dramatically.
“We don’t go out anymore,” Janet said flippantly. They put less into their emergency saving fund and renegotiated their cable and phone packages. To make up the shortfall, the Galvins reallocated money from other areas. Here’s their average monthly cost breakdown: Initially, the Galvins had budgeted $150 a month for baby-related expenses but quickly realized they were spending three times that on their bundle of joy. “I didn’t factor in the cost of formula.” “I thought I was going to be able to breastfeed longer,” she said. Now into her seventh month of mat leave, Janet says the finances are still on track but admits it’s more expensive than she expected.
By the time the baby arrived, the couple had saved $8,500. The Galvins began putting away about $200 a month when they made the decision to have a baby, then doubled it when they finally conceived. Janet is the higher-income earner in the family, but she didn’t want that to stop her from taking a full year of maternity leave. As a commercial banker, creating a thorough budget and sticking to it only made sense. We both put money aside every month to save up to for the time I would be off,” Janet Galvin said. “We sat down and figured out our costs over the year, taking into account my loss of income, our regular expenses and additional baby costs.
When the Galvins started planning for their first child, they also started saving.
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