Hidden costs of having a baby: Discover expenses that new parents overlook.
Having a baby is financially manageable due to the country’s healthcare system, which includes Medicare, which covers the bulk of medical costs related to childbirth for Canadian citizens and permanent residents.
While delivery might be virtually free or cost just a few hundred dollars for optional services like a private room, new parents often face unexpected expenses that can add up quickly.
Additionally, breastfeeding involves purchases such as breast pumps, nursing bras, and pillows, along with the potential need for professional lactation consultations, which can be pretty costly.
All these factors combined illustrate that while childbirth might be covered by healthcare in Canada, the overall hidden costs of having a baby need careful financial planning.
Hidden costs of having a child
Lost Income During Parental Leave
Maternity and paternity leave aren’t always paid in full. You might lose part of your income if one parent takes time off.
How To Prepare:
- Save at least 3-6 months of living expenses before the baby arrives.
- Look into government benefits (like EI maternity leave in Canada).
- If possible, take on side jobs before giving birth to save extra money.
Extra Household Costs
Once the baby arrives, your home life changes, and so do your expenses:
- Higher utility bills (You’re home more, using more water & electricity).
- More groceries (Baby formula or extra food for a nursing mom).
- Cleaning supplies ( Babies = more laundry, more messes).
How To Prepare:
- Switch to energy-saving appliances and habits.
- Consider breastfeeding (if possible) to save on formula costs.
- Stock up on essentials before the baby arrives ( buy in bulk!).
Childcare
It’s more expensive than you think! Daycare and babysitters can cost thousands per year. Even if family members help, last-minute childcare costs can add up!
How To Prepare:
- Research childcare options early (long waitlists)
- Check if you qualify for subsidized childcare programs
- If possible, try to work from home or in a flexible job to reduce daycare hours.
Baby Gear That Adds Up
Many parents get gifts for the first baby, but not everything is covered. You may need:
- Car seat, stroller, crib, baby monitor (big one-time purchases).
- Diapers & wipes (ongoing, can cost $1,500 + per year).
- Baby clothes (they grow fast; hand-me-downs are helpful).
How To Prepare:
- Buy secondhand for big-ticket items (except car seats).
- Sign up for free baby samples and freebies (diaper companies often give out free packs).
- Join parent swap groups to trade clothes & gear.
Unexpected Medical & Special Needs Costs
Some babies need extra care, like:
- Lactation consultants ($100+ 100+per session if nursing is difficult).
- Speech therapy, physical therapy, or special needs care.
- More doctor visits if the baby gets sick often
How To Prepare:
- Include healthcare expenses in your budget. Maintain an emergency fund for unexpected medical expenses.
- Research government support programs for special care.
Future Education Costs (Start Early)
Even though college feels far away, education costs start early:
- Preschool fees (some private ones cost as much as daycare)
- School supplies & extracurriculars (music, sports, uniforms).
- College savings (the earlier you start, the less you worry).
How To Prepare:
- Open an RESP (Registered Education Savings Plan) in Canada.
- Contribute small amounts regularly ($25/month adds up).
- Look for scholarships & grants when the time comes.
Parenthood is a lot of work, but financial stress can be stressful. The good news? Planning will help you handle these costs.
Your Next Steps
- Create a baby budget before birth.
- Start an emergency fund ( even just $500 helps).
- Research free and affordable resources for parents.
Do you have tips or experiences? Could you share them in the comments? Let’s help new parents stay financially strong!
Check out this article:https://masteringpersonalfinances.com/financial-planning-parenthood/
