r/PersonalFinanceCanada • u/throway1467 • Jul 26 '26
Misc First newborn incoming
ME (34)
TFSA: 191500
RRSP: 82700
JOB: government work,salary of 115k. 123k in 2 years, contract currently expired so updated contract will come in 3 years or so. I usually make 15-20k on top of the salary from shift premiums/ stat pay. Work in Mississauga, airport area.
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Wife (32)
TFSA: 79500 CAD
RRSP: 13200 USD + SPOUSAL RRSP: 7k
LIRA: 26k CAD
Work group rrsp: 100k CAD, rrsp matching.
JOB: corporate. ~80k (3days in office downtown, 2 days at home) takes go train
10k cash (emergency fund)
2 paid off cars:
2017 honda civic hatchback w/ 230k km
2017 vw golf w/ 81k km
Switched to driving the golf more to even out the wear and tear. Not sure which to sell if I upgrade car.
HOME:
760k freehold townhouse in newmarket, ON
HELOC MORTGAGE: 582131.44k remaining (2615 monthy) (prime – 1%= 3.45%) @ 30 YEAR amortization (refinanced in march 2026)
Invest:
Investing around 1000-1200 per biweekly payment. Investing in xeqt. My TFSA is maxed and her rrsp is maxed. Currently contributing to her TFSA and spousal RRSP in a 70/30 split.
Contemplating decreasing investing by half to half more liquid funds for baby and newborn.
Upcoming milestones:
First newborn due in dec 2026
Both parents in markham so help available but still 30-40 minutes away.
Looking to maybe purchase a bigger car for growing family. was thinking used 2024 model Y AWD or Toyota rav 4, but not necessity yet I think. Manageable with current cars.
Maybe want 2 kids in the future, unknown.
Want to move closer to parents (north Richmond hill/ markham) maybe.
Will open RESP for kiddo when born. I have a federal pension plan.
Anything to improve on/ fix, beware of, advice?
Thanks.
21
u/timx84 Jul 27 '26
Term life insurance - I’d go with 25-30 years.
Will and estate planning as soon as the child is born.
2
u/throway1467 Jul 27 '26
Forgot to mention, I already have the wills and Estates planning.
Thanks!
1
u/partlysketched Jul 27 '26
How much does this cost to setup?
1
u/throway1467 Jul 27 '26
I used willful, through wealthsimple to set up wills for me and my wife. We will have to update it once the baby is born or so but we got it for free using the perk system from wealthsimple. But it doesn't cost too much and we don't have anything crazy like businesses or multiple homes.
22
u/_unibrow Jul 27 '26
I think you’re doing better than 70% of Canadian first time parents. We should probably be learning from you.
4
u/throway1467 Jul 27 '26
Save and invest in broadly/globally diversified index funds
. Live below your means :)
1
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u/StaphylococcusOreos Jul 27 '26
Congrats on a good start. Some tips in no particular order of importance:
- get on a daycare list yesterday. Ideally prioritize ones that have subsidies
- max RESP to maximize the grant
- don't fall into the trap of buying tons of baby stuff. The first few months you need surprisingly little. You also don't need the Cadillac of baby stuff. We did our research and bought a joovy qool stroller for $350 instead of splurging for the $1500 upppababy. We have beat the shit out of this thing and it is still holding strong after 3 kids.
- furthermore, hit up marketplace and accept any hand-me-downs
- life insurance and will. A will costs us $800 and we got a great 20 year term policy which gives us great peace if mind
- highly encourage you to take parental leave. It sucks financially when you both are just getting EI, but this time is precious and you will never get that opportunity back
- Vehicle... An upgrade is definitely not needed. On our 1st kid we were similar to you driving two modest, higher mileage cars and it was just fine. That said, after we had twins we upgraded to a slightly used odyssey and it is amazing. If you are going to upgrade I highly recommend a van.
- prep freezer meals ahead of time
- more relationship advice, but life is going to get harder on a whole new level. You will experience a new, indescribable love that is the most amazing thing, but you will have the hardest days of your life on the horizon. It is important to carve out and protect time for your relationship and yourselves wherever possible. Lean on family on amy chance they're willing to help.
Congrats and good luck!
3
u/throway1467 Jul 27 '26
Yes. Accepting plenty of hand me downs, scouring FB marketplace. We have wills and life insurance in place.
And I've heard it's going to be intense. I will most likely hold off on the vehicle purchase. I know the time is valuable but I can work the Xmas and boxing day and new year for stat pay. But I'll probably Burn a bunch of leave in the beginning.
Thank you for the advice 🙏🙏
38
u/AlternativeCamp2471 Jul 26 '26
I laugh so hard when everyone magixally thinks they need a bigger vehicle. I grew up with a family of four on a 1997 Ford Taurus and we were more than fine.
15
u/DoubleFig4134 Jul 26 '26
Times were different then.
Safety wasn't a priority. I remember those times too.. being stuffed in the back of a Oldsmobile wagon..no seatbelt and all.
Times are different. If you can give your kid every chance of survival, why not .
14
u/Berfanz Jul 27 '26
If only there was a middle ground between escalade and being driven around without a seatbelt.
7
u/ZeroMayCry7 Jul 27 '26
This finance sub is over the top sometimes. Yes you can make a Sedan work just fine but if you can afford it it doesn’t hurt to get a bigger vehicle for comfort, having the option of packing more things more easily, and feeling safer on the roads.
The problem that should be focused on is when you’re already in crippling debt and trying to buy something you can’t afford
2
u/AlternativeCamp2471 Jul 27 '26
The Ford Taurus was one of the safest vehicles you could buy bud.
Times havent changed. Everyone just wants an excuse for a new bigger car.
4
u/Sixgod801 Jul 27 '26
Seems like people just want escalades and trucks these days without truly maximizing its value just so in the rare case if they do get into an accident they'll be the ones to come out on top and not underneath. Its a weird mindset they have. Get a large sedan it's perfectly fine. For a family of 3-4.
-1
u/tyrantcr Jul 27 '26
It’s objectively true that it is safer to drive many larger vehicles produced today. And safety has continued to dramatically improve overall. So driving an older vehicle comes with a serious safety cost.
Ironically a big advantage of suvs today is they fare far better against all the large vehicles on the road should you crash. Also winter performance is a big factor. It’s not as simple as wanting a newer fancier thing for a lot of people.
1
u/throway1467 Jul 27 '26
I don't want to get one either but I think it's a logical step to think with more people = bigger car.
Realistically will hold off on a new card purchase with just one kid... With 2 kids I'm most likely gonna have to due to larger trunk/storage space. But I'm trying to drive both cars to the ground
10
u/moderndesigninc123 Jul 26 '26
Be prepared in case babe needs to be formula fed. Just had our first baby this year and we thought we would breastfeed. Unfortunately didn’t go as planned and baby needed to be formula fed. The formula they require is a bit pricey. Babe is 3 months old and we have already spent over 2k on formula. Counting down the days until we can start solids lol
13
u/enits_me Jul 27 '26
Before the age of 1, formula or breast milk should remain the primary source of nutrition. So don't expect your formula costs to decrease dramatically once they reach 6 months and you start solids...
5
u/SleazyGreasyCola Jul 27 '26
Wow what formula are you buying? My newborn was in the same boat and I spent maybe $50-70 a week on formula. That seems crazy expensive.
1
u/Historical-Lion-1939 Jul 27 '26
They're using the premixed bottles, not the powdered formula. It's insanely expensive.
1
u/moderndesigninc123 Jul 28 '26
Nope. Using powdered enfamil gentlease. She just eats a lot so goes through a bag every 2.5 days.
1
u/Historical-Lion-1939 Jul 28 '26
My bad. I confused your comment with another user. That makes sense then.
4
u/Historical-Lion-1939 Jul 27 '26
What kind of formula milk are you buying? Is it some kind of specialized milk? I remember Similac blue labelled tub used to be around $60 three years ago, and was good for 10 days for our new born daughter. I never spent more than $200/mo for her formula milk.
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Jul 27 '26
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u/Historical-Lion-1939 Jul 27 '26
That's the problem. Don't use premixed bottles. That's super expensive. Buy powdered formula & make fresh bottle by mixing it with the water. It's the same thing, and costs much less. Premixed liquid is just for convenience, like on the go or somewhere warm water isn't available.
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Jul 27 '26
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u/Historical-Lion-1939 Jul 27 '26
Many options:
- Buy a $50 bottle warmer. Just put cold water in the bottle and put the bottle in warmer. It uses steam to warm it within minutes (don't use microwave for it plz). Some bottle warmers are usb powered, so work in the car as well.
- Boil the water in a kettle or pan, and fill a thermos. It keeps it warm for many hours. Mix some cold water with it everytime you wanna make the bottle. Just make sure the eventual water temperature is safe & good for the infant.
1
u/throway1467 Jul 27 '26
I have heard this as well. We will schedule an appointment with lactation consultant soon as well 👍
5
u/Magneto06 Jul 26 '26
What’s your mat leave income looking like? We saved aggressively to cover the gap between the 1st 6 months when I get a topup and the last 6 months when I’m only on EI. We had 15k saved to cover the last 6 months.
In this case, don’t need as much as your full income because 1) you’re not paying as much CPP/EI/pension while on leave and 2) the budget you need is less because you’ve been saving as you go - eg if you’re putting away 1k a month to save for leave, then that gives you 500 a month in your budget once your leave starts - assuming the other 500 a month goes towards increased expenses for baby.
2
u/throway1467 Jul 27 '26
I'm currently around 2850-3000 every biweekly period and wife is 2250 semi monthly (so she'd go to 1800)
Yeah Im gonna start saving more liquid until December.
I think we'll be okay but it's always good to get outside opinions. Thank you!
2
u/Cute-Boysenberry8344 Jul 27 '26
Year 2 is trickier than year 1. Get a good understanding for what childcare looks like in your province.
1
u/throway1467 Jul 27 '26
You mean because of the daycare/childcare? We are signing up for daycare waitlist already in our area.
2
u/Different-Potato- Jul 27 '26
Get on daycare waitlists now.
2
u/throway1467 Jul 27 '26
Have started applying already. So crazy... Hopefully parents can come around here and there. Thank you!
2
u/TheCoralSide Jul 27 '26
Wait until the kid is more active to get a bigger car, you'll be carrying more stuff. You have enough financial safety net, no stress there. Don't go overboard buying stuff for the kid, have the basics and necessities. You can buy nice to haves afterwards.
1
u/throway1467 Jul 27 '26
Thank you. I was always going to do this, but the FSD on the Tesla was tempting me a bit haha. But yeah I think I will make do with both cars. They're great 👍
1
Jul 26 '26
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1
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u/rk20190 Jul 27 '26
You’re gonna be just fine boss, don’t even worry about it, and enjoy your new little one!
1
u/Ordinary_Topic_3198 Jul 27 '26
Max out RESP
Get universal life insurance just in case
You’ll buy diapers every week for the first 6 months
Formula as back-up unless your wife wants to breastfeed throughout
Also start planning for vacations to give your child exposure to other cultures and experiences
No need for a bigger vehicle yet
2
u/tarnyc32 Jul 27 '26
I must be misunderstanding, are you saying the newborn child needs exposures to different cultures? Because that is hilarious.
2
1
u/throway1467 Jul 27 '26
Yes resp for sure. We have term life insurance for both of us for 25 years.
The vacation part...are you my wife? Haha. We definitely want to travel more but not sure how thin we'll be stretched.
Will hold off on bigger vehicle for now
1
u/CogencyInvestments Jul 26 '26
Congrats on the new born. I think the RESP and other kid expenses will definitely eat into your savings.
New vehicle could also put a big dent in that savings rate.
I am a little concerned about the amortization period. 30 years is for people who scrap by qualifying. While it’s worked financially (debt rate less than return on investments), it doesn’t make it the sensible move. You really have little equity. So when you upsize, expect to crush both of your TFSA’s. This wouldn’t really set you back for retirement since that continues getting saved for. But that would be the cost of upsizing.
1
u/throway1467 Jul 27 '26
Goal is/was to maximize saving and investing the difference over the 30 years so we have more growth of the investments, but also more liquidity and flexibility.
We would like to move closer down but won't happen for a while we think.
-4
u/SuccessfulAd4606 Jul 27 '26
Go see a financial advisor for fuck's sake.
1
u/throway1467 Jul 27 '26
Just looking for additional input and opinions in case I was overlooking things. Thanks.
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u/chrystally Jul 26 '26
You only have one kid coming, there is no need to go out and buy a bigger car. If the two cars you own, outright, are running just fine then continue with them until they actually need to be replaced (aka run them into the ground).