Posts Tagged ‘money smart mom’

Book Review-Money Smart Mom-Financially Fit Parenting

Posted: July 7, 2012 in Book and Product Reviews
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A Book Review of Financially Fit Parenting written by Author Sarah Deveau

As you may already know Mrs. CBB and I have no children as of yet. We are hoping to have a child one day soon and this book was an excellent guide to answer some of our questions. When we hear about children and money we automatically believe it will cost a fortune to raise a child. That may be the case but if you plan and budget your money it may not be as bad as it sounds.

Sarah doesn’t miss a beat in this book offering tips on everything from making the decision to have a child all the way to budgeting and saving for the future.  All soon-to-be or wanna be parents like us should read this book and make notes and lots of them. You will learn everything you need to know about parenting tucked into this well planned out guide.

One of the most important topics is preparing for one income and adjusting the budget to show this change. I often have mothers asking me how they can budget while on maternity leave  and I often tell them to “live it” before the baby arrives. What that means is sort out a mock budget using as many figures as you can and live from one income to see if can be done. If not then you will know ahead of time what needs to be changed. Some parents decide to stay home for good and not return to work and this helps you to make a sound decision. It’s important to understand the basics of maternity and paternity leave before you set any plans in motion.

Sarah goes on to explain that  ”after running the numbers,many families find that it just makes sense for one parent to just stay home with the children”.

While you are staying at home you no longer need to spend money on items such as work clothes, lunch, coffee etc. These out-of-pocket expenses that you won’t be spending need to be taken into consideration when budgeting for a one income family.  You both need to sit down as a couple and make a list of all the important details of  your budget. Make important adjustments to see if it is a realistic expectation to stay home and still pay all the bills.

Another money crunch in the budget when having a child can be all the baby items you need to purchase. I know that Mrs. CBB and I were terrified about all the baby stuff on the market. We truly thought how are we going to afford all of this stuff. Sometimes we walk through the baby section at the shops and the prices scare us. The sheer amount of gadgets on the market can really add up in the budget.

Sarah warns that they grow up fast, remember this speedy development also means they grow out of things equally as fast.

You can easily take advantage of the vast amount of garage sales in the summer time to find anything and everything baby related. You can scour the internet or mom to mom sales for cheap baby clothes and then some. When your child grows out of  things you can turn around and sell them to another parent. You can also take advantage of using coupons to stockpile diapers,bottles,formula etc.  before your bundle of joy arrives to save money in your budget.

Since reading Financially Fit Parenting  Mrs. CBB and I feel better prepared to make the right decisions for preparing to bring a child into this world. If you have questions and you want answers Sarah has them all in Financially Fit Parenting.

WIN A Copy of Financially Fit Parenting!

Here’s How………..

If you would like to WIN a Copy of Money Smart Mom- Financially Fit Parenting You must be a Fan/Follower of Canadian Budget Binder on either Facebook,Twitter,Pinterest or a Blog Subscriber to enter.  Tweet,Pin or link to this post or Share the Facebook Post then comment on this blog post to be entered. You must complete the above to be entered along with commenting on this post. One entry per email and per person.

Contest starts Saturday July 7,2012 and ends Monday July 9,2012 at 10am EST. Canadian Residents Only. Winner will be announced Tuesday July 10,2012. Watch for the post!

You can purchase Money Smart Mom-Financially Fit Parenting on-line at Chapters Indigo and visit Sarah’s website at MoneySmartMom for more tips and ideas.

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Maternity and Parental Leave Part 1 – The Basics

Posted: May 30, 2012 in Maternity Leave
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Even if you have the easiest baby in the world, maternity or parental leave won’t be the blissful paradise you imagined if you’re constantly stressed about your reduction in income. In this two-part series I’ll outline how the benefits work, and how you can make them work for your budget.
Maternity and Parental Leave Benefits in Canada
Unless you work for a company that offers an income top up programs or paid maternity leave most parents on leave will only receive basic maternity benefits, which fall under Canada’s Employment Insurance program.
While many people refer to the year a mother takes off after the birth or adoption of a child a maternity leave, it’s actually a combination of two leaves. The first leave is called maternity leave, and is only available to birth mothers and surrogate mothers for up to 15 weeks.
After the 15 weeks, the leave is now called parental leave. This cheque can be collected by either the biological or adoptive parents for up to a maximum of 35 weeks.These benefits can be claimed by one parent or shared between the two partners, but cannot exceed a combined maximum of 35 weeks.  
Parental leave benefits must be claimed within the 52 weeks following the child’s birth, or for adoptive parents, within the 52 weeks from the date the child is placed with you. 
Leave payments are capped at 55% of your average insured earnings up to a yearly maximum insurable amount of $42,300 $45,900 as of January 1,2012.
This places the current maximum payment at $447 $485 per week. You could receive a higher benefit rate if you are in a low-income family earning with a net of $25,921 or less per year – be sure to check into this. Your payment is a taxable income, meaning federal and provincial or territorial taxes will be deducted.
How to make extra money while on Maternity leave?
Working while on leave can be a good way to earn extra money. It doesn’t make financial sense to work while on the maternity portion of the benefit, as your earnings will be deducted dollar for dollar from your benefits, unless you make significantly more than the benefits (after the cost of child care is deducted, if needed).
If you work while you’re receiving a parental leave benefit, you’re allowed to earn $75 per week or 40%. This was changed as of August 2012 to $50 per week or 25% of your weekly benefits whichever is higher. Any income earned above that amount will be deducted dollar for dollar from your benefits. 
Update: Oct 18,2012- There is  now a New Pilot Project In Place in which they are currently making changes to. Review this pilot project for any changes to the above as it may affect you.
New Pilot Project:  Once the waiting period is over earnings are deducted at a rate of 50% of each dollar earned up to 90% of the weekly insured earnings used to establish the benefit rate.
After you reach the 90% threshold money is deducted dollar for dollar. As of January 2013 you will have the option to stay with the current pilot project or revert to the old pilot project if you are an eligible claimant during the period August 5,2012- August 1,2015.
Check out Part 2 In this Series: Maternity and Parental Leave Part 2: Budgeting
Post Contribution By: Sarah Deveau is the author of Money Smart Mom: Financially Fit Parenting. Reach her at  Money Smart Mom.

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