Maternity and Parental Leave Part 2: Budgeting
- Plan ahead. If you’re pregnant, or just planning to get pregnant, now’s the time to go on a money diet and begin budgeting for a baby. Trim your budget and do your best to live off your projected maternity leave income. Save that unused income to provide you with a cushion during your mat leave, to cover some of the larger baby items, or to pay down debt. Don’t assume it will be easier to save more money when you’re not working, because you won’t be tempted by eating out or clothing or events. You’ll be just as tempted, if not more, by baby deal websites and the goods on display at your mall playdates.
- Make friends in the same boat. Join baby groups where the moms want to meet at each other’s houses, not the local play place. Arrange walking dates that don’t go past an expensive coffeehouse. Find friends that you can share meal planning ideas or coupons with, swap baby clothing with, and generally support you in sticking to your budget.
- Take a breather. If you’re finding it hard to make ends meet on the basics and you’re being honest with yourself that you’ve cut out the extras, start looking at your fixed costs. You may need to change your mortgage from biweekly to monthly, eliminate your cell phone, cut back on the cable bill, sell unused items for cash, applying for a consolidation loan to ease interest headaches or putting a hold on RRSP payments. Some of these moves are truly for extreme cases only, and if you’re considering them, be sure you’re doing it for the right reasons – not because you’re in a cycle of spending on frivolities and then slashing important things like debt repayment.
- Bring in extra income. As noted in Part 1, if you work while you’re receiving parental benefits, you’re allowed to earn $75 per week or 40% of your weekly benefits, whichever is higher. If you’re earning the maximum of $447 per week, you can add an extra $178 in income each week without being penalized. Any income earned above that amount will be deducted dollar for dollar from your benefits for maternity while off the job.
- Maternity and Parental Leave Part 1 – The Basics (canadianbudgetbinder.com)
- Maternity leave basics: Canada vs. the U.S. (theglobeandmail.com)
- Just Married! We’re Newlyweds And Need A Budget (canadianbudgetbinder.com)
- Is The Tax Free Savings Account For Me? (canadianbudgetbinder.com)
- RESP Investing In Your Child’s Education-The Basics (canadianbudgetbinder.com)
- The In’s and Out’s Of A Debt Reduction Plan! (canadianbudgetbinder.com)