Preparing for the arrival of your little princess or prince? Half of Canadians have budgeted for their new bundle of joy: Scotiabank study

TORONTO, July 26, 2013 /CNW/ - As Canada celebrates the birth of the royal baby, many Canadians are also getting ready for the birth of their own future heirs, and preparing for a baby can be an expensive process. According to Scotiabank's Baby Savings Poll, on average, Canadians think it will cost just under $5,000 ($4,970) to prepare for the arrival of a new baby, with residents in Quebec anticipating the highest cost ($5,780) and those in Manitoba and Saskatchewan the lowest cost ($4,050). Meanwhile, men expect the cost to be about $5,350 while women ballpark it at $4,600.

The study also reveals that among those who have at least one child, one-half (50%) have saved or budgeted prior to their baby's birth. Men are slightly more likely than women to say they saved ahead (55% vs. 45%). The province most likely to have budgeted for their baby was British Columbia (71%). Those in Atlantic Canada were the least likely to have saved ahead before their child's birth (30%).

Scotiabank offers tips for how to get ready financially for your new arrival.

  • Create a budget with your baby in mind. List out what you are going to need for the first year of your child's life - from diapers to a stroller to a car seat. Figure out what your one-time purchases are going to be vs. ongoing weekly expenses. Create a family budget listing your monthly income and expenses so you can really understand your monthly budget. Consider how your monthly budget will change after the arrival of your little one especially if you have a decrease in household income with one parent not working.

  • Do a trial run of your baby budget. You are likely going to need to adjust your spending habits to save up for your baby, whether it's switching to a less expensive cable package or cutting back on entertainment. Whatever tweaks to your finances you've decided to make, try living on your new budget before your child is born. A practice run will give you time to get used to your new spending habits.

  • Think about their education. It's never too early to start an education savings plan for your child. By arranging preauthorized automatic contributions to a savings plan, you can gradually build up a fund to help your child attend a postsecondary program. A Registered Education Savings Plans (RESPs) is a great way for parents, family and friends save towards a child's future postsecondary education. The sooner you start saving, the better position you and your child will be in down the road.

  • Be thrifty. When you go into a baby store and are surrounded by strollers, cribs, and adorable little outfits and shoes, it is easy to be overwhelmed by choices and be tempted to overspend. Before you stock up on things for your baby, talk to your friends and family to find out what you need versus what you might want.  Many parents with older children are also keen to pass along their good-quality used baby items.

  • Breathe and ask for help. It can be an overwhelming and exciting time as you get ready for your baby. Just like you trust your medical team to help with the birth of your child, speak to a financial advisor to help you come up with a plan to pay for this exciting new chapter in your life personally tailored to suit the needs of you and your growing family.

Quote
"Having a new baby is incredibly exciting, whether it is your first child or you are adding to your growing family," says Ahmad Dajani, Vice President, Investments, GICs & Sales Tools at Scotiabank. "It can also be an overwhelming time, particularly if you are worried about how you are going to afford the extra expenses. We recommend meeting with a financial advisor who can help you create a financial plan that works for your growing family so that you can focus your energy on getting ready for your new arrival."

About Poll
Data was collected by phone using Harris/Decima's national telephone omnibus (tVox). A total of 1,003 surveys were collected from July 18-21, 2013 with a margin of error of +/-3.1 percentage points 19 times out of 20. The data were weighted to be reflective of the Canadian general population based on the Canadian Census.

About Scotiabank
Scotiabank is a leading multinational financial services provider and Canada's most international bank. With more than 83,000 employees, Scotiabank and its affiliates serve some 19 million customers in more than 55 countries around the world. Scotiabank offers a broad range of products and services including personal, commercial, corporate and investment banking. In December 2012, Scotiabank became the first Canadian bank to be named Global Bank of the Year and Bank of the Year in the Americas by The Banker magazine, a Financial Times publication. With assets of $754 billion (as at April 30, 2013), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more information please visit www.scotiabank.com.

BACKGROUND:

                                             COST FOR THE ARRIVAL OF A NEW BABY

How much do you
think it would cost to
prepare for the arrival
of a new baby?

Total

Region Gender

Atlantic

Quebec

Ontario

Man/Sask

Alberta

BC

   Male   

Female
Average

$4,970 $4,134 $5,781 $4,880 $4,046 $4,916 $4,743 $5,353 $4,598

   

                                        CANADIANS WHO BUDGETED FOR THEIR BABY

Did you save/budget
prior to the arrival of   
your baby?

 Total
 
Region
Gender


Atlantic

Quebec

Ontario

Man/Sask

Alberta

BC

  Male  

Female

Yes

50% 30% 43% 49% 52% 53% 71% 55% 45%

 

SOURCE: Scotiabank

For further information:

For media inquiries:

Scotiabank - Media
Diana Hart
P: 416-866-7238
E: diana.hart@scotiabank.com


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