Baby Number 2

Baby Number 2

We had our son 4.5 years ago and at the time thought we would wait a bit between kids. About 2.5 years ago we started “trying” again. I thought yeah no problem we will pop one out right away like we did the first time around. This time was different it has taken us this long and 2 miscarriages to finally be able to say, we are expecting #2. Woot! Woot!

My wife is currently around 4 months pregnant and looking fantastic. I tell ya after I had my first kid, I find pregnant women absolutely gorgeous. The glow, the thought that they are bringing another kid to the world and of course the bigger bust =) We definitely would of liked our kids to be aged closer but all the trying was fun.

Right now we don’t know of the sex of the baby but will find out in the middle of August. I’m definitely hoping for a girl now that I got a son. I dunno I think a sweet tea party would be a great time. haha Of course this will change if shes older. I see some 13 year old girls wearing belly tops, I think I would be that dad who freaks out – you ain’t wearing that out. So if we had another boy I don’t need to worry about that.

Budgeting for a baby

So far I have not found my son to cost a lot of money like you hear people say. We are lucky and my wife’s aunt watches our son each weekday while we work for 25$ a day. He plays soccer and does swimming lessons but to keep it easy for us, we don’t let these overlap. It’s one thing until the other is done. I think soccer and swimming lessons are like 150$ for 2-3 months once a week. Most of his clothes are hand me downs from his older cousins and we buy the odd shirt etc. Right now he doesn’t care about brands so obviously that is cheaper. He prefers a minion shirt over a nike shirt – obviously that will change.

In September he will be starting school and will be attending after school daycare which will drop the cost to 15$ a day. While this sounds good, we were on a waiting list and luckily got this slot. When she is on mat leave he will probably be staying in this vs my wife just getting him after school to guarantee his spot when she returns to work.

Our house storage area’s are currently full of baby toys, cribs, clothes, etc etc. I’m definitely looking forward to clearing that stuff out. Of course it will be nice though since there won’t be much to buy with the new baby. Oh to be the 2nd kid, full of hand me downs. I was the 2nd kid growing up……….

Mat Leave

Recently the government of Ontario changed the Mat Leave rules. You have the option of 12 month’s of mat leave or 18. But you will only receive 55% of your salary total. Either divided by 12 months or 18 months. We both have agreed for her to take the 12 month option. This will clearly dampen our financial situation next year, it will be doable but there probably wont be as much free cash flow for investing.

Baby Bonus

Free Money! The government will give you money monthly to help with the finances of raising your kid. We currently receive $150 per month for our son. This is definitely on the low end since we both work and our incomes total are above average….. I know people who’s wives stay at home and don’t work and bring in 460$ per kid. Guess that’s the system though…… Penalize the people generating money for the system and give to the ones who choose to not work…. Ahhh that’s a whole different conversation! So with another kid I guess we will receive $300 per month. Free money is free money, can’t complain there.

Baby Financial Planning – Registered Education Saving Program

In Canada the government will match your savings inside a RESP for your kids college/university savings by 20% to a max of $500 per kid a year. ie you deposit $2500 to your kids resp the govt will throw in $500 per year for future schooling. We have been maxing our son’s resp out every year as it’s too good to pass up. With a new little one we will have to toss in $5000 per year to max out the governments offer. This will definitely be harder since it will average $410 a month now.

Conclusion

Anyways we are super excited to welcome the newest member of our family. Like when we bought a new house, had our first kid etc etc. I analyze the numbers way ahead of time, sometimes I worry or wonder what will happen financially.

This time Hakuna Matata – It mean’s no worries!

Rob

Hey I’m Rob, creator of Passive Canadian Income.

In 2011 me and my wife had almost $60,000 in debt and a negative $7,000 Net Worth. Through hard work and financial education we paid all that off. Now we are focusing on increasing our Passive Income Streams to make the money work for us. Feel Free to Follow along the Journey by clicking the Social Media links below or subscribing to get notified of new posts on the sidebar.