Expecting? Prepare for the unexpected when you add a baby to the family

Prenatal and Medical Expenses

The good news for residents of Alberta is that healthcare costs related to pregnancy and childbirth are largely covered by Alberta Health Services (AHS). This includes prenatal care, ultrasounds, delivery (whether through natural birth or caesarean section), and postpartum care. However, there are still out-of-pocket expenses to consider, including:

• Prenatal vitamins and supplements: These can cost anywhere from $20 to $50 per month.
• Private maternity classes: If you opt for additional prenatal education classes outside of those offered by AHS, they can range from $100 to $200.
• Out-of-hospital midwifery services: While some midwifery services are covered, you may face additional costs depending on the provider or specific services.
• Non-medical services: Some parents choose to hire a doula or attend specialized prenatal yoga classes, which can add another $500 to $1,500.

Parental Leave and Income Adjustments

Both parents in Alberta may be eligible for Employment Insurance (EI) benefits during parental leave.  For current information on maternity and parental leave in Alberta, click here https://www.alberta.ca/maternity-parental-leave. 

Childcare Costs

Childcare is one of the biggest expenses parents will face after the birth of their child, especially once maternity or parental leave ends. Childcare costs in Alberta vary based on location and the type of care.

• Daycare or childcare centre: Costs can range from $800 to $1,500 per month, depending on where you live.
• Subsidies: Alberta offers a childcare subsidy program for low- to middle-income families, which can help offset these costs.

Essential Items for the First Year

There are many must-have items for newborns that should be factored into your budget. While many parents opt to buy items new, if cost concerns are a factor for you, then perhaps purchasing (where safe and appropriate) second-hand is your best option to cut some expenses. Costs vary on items and supplies, but having $10,000 set aside to get started and to cover the first few several months of supplies may be advisable.

Here’s a list of essential items you may need:

Nursery Setup: $700+ one-time

• Crib, mattress, bedding, change table, glider, rocking chair, baby monitor

Transportation: $1500+ one-time

• Infant car seat, stroller, baby carrier or wrap

Clothing and Diapers: $200+/month

• Clothing (0-12 months), diapers, wipes and diaper cream
• Cloth diapers can have a higher upfront cost but may save money in the long run

Feeding Supplies: $150+/month and $600 one-time

• Breast pump, high chair, bottles, formula

Health and Safety: $250+ one-time

• Baby first aid kit, thermometer, babyproofing supplies

Other Miscellaneous Items: $$600+ one-time

• Diaper bag, toys, books, entertainment, baby bathtub, bouncer or swing

Lifestyle Preparations

While your current budget may work for you, and as you assess your preparations for welcoming the baby, you may need to make some lifestyle changes that can impact your timeline or planning.

• Housing: Assessing your current and future housing needs for your growing family may mean changing locations, which may incur additional monthly rent or mortgage expenses, as well as associated moving costs to consider.
• Vehicles: As your family changes, your ways of getting around may change, including adding a second vehicle or changing the vehicle that you currently own. This may mean leasing or loan expenses that need to be accounted for in the months or years ahead. **
• Pets: If you have a fur-family member, it may mean adding dog-walkers or daycare to ensure your pet is getting the time and exercise they need during the initial months of adjusting to a new baby. **
• Travel: If your family is in a different location, a new baby may mean a family visit is in the future - either you travel to see them, or they come to visit you. The added expenses for family visits and travel with a new baby in the first years may be overlooked in the excitement of baby planning.

Unforeseen Expenses

While you may budget for all the basics, it’s important to set aside a financial cushion for unexpected costs, such as:

• Medical expenses not covered by insurance: Some vaccinations or treatments may not be fully covered.
• Emergency funds: Unexpected expenses related to health issues, home repairs, or other emergencies can arise.

Long-Term Planning

As you prepare for your new baby, consider starting or adjusting a savings plan to account for future expenses, such as:

• Education savings: Alberta families can take advantage of the Registered Education Savings Plan (RESP), which allows you to start saving for your child’s education early.
• Life insurance: Ensure that you have adequate life insurance coverage to provide financial security for your family in the event of an emergency.

Financially preparing for a child requires planning and budgeting, but with a solid plan in place, you can focus on enjoying your time with your new baby. By accounting for medical costs, essential items, childcare, and long-term savings, you’ll be in a strong position to manage the financial responsibilities of parenthood.

The key is to start early, create a budget, and ensure you have a financial safety net for those unforeseen expenses that inevitably arise when welcoming a new member to your family.