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  • Jenna Trollope

Children will change the future. How will they impact your financial plan?

"Life is what happens to you while you are making other plans.” - John Lennon


A family hiking up a mountain


When you quit your job to change career paths or have a baby, life changes. You have more constraints on your time and new responsibilities to take on. Financial advice should always be personalized to you, and major life changes change your financial focus. So naturally, children will change your future financial plans as life shifts according to new priorities.


All of a sudden, you need to upgrade your car to fit a car seat. You need a bit more space at home for your growing family. You talk about the future and start saving and investing for your children's education in a Registered Education Savings Plan (RESP), and take advantage of the Government of Canada's grants to match your contributions. The earlier you start investing, the more interest you can earn in the long run. There is a lot to unpack outside of a diaper bag.


Once you have kids depending on you, you consider life insurance for the very first time to protect your family in case anything happens to you. Your kids need someone in place to take them in and care for their physical and emotional needs during a very difficult transition. Who do you trust to protect your kids and their estate?


With the increased expenses that come with a growing family, you and your partner will need to compromise on priorities, how to spend your time, and how to meet your goals as a family. Welcoming little ones into our lives is a joyous journey, but it also demands careful consideration and adaptation of our financial strategies.


  1. Children represent our legacy. They will inherit not just our material possessions but also our financial habits and values. Educating them early about money management instills a sense of responsibility and empowers them to make informed decisions in the future and be mindful of money to manage it well throughout their lives.

  2. Cost of Raising Children: Let's face it; children are expensive. From diapers to daycare, extracurriculars to their education to competitive activities, the financial commitments only grow as they get older. Understanding the costs and integrating them into your financial plan is essential for maintaining stability and achieving your long-term goals as a family.

  3. Changing Priorities and Goals: Parenthood reshapes our priorities. Suddenly, saving for a down payment on a house or planning exotic vacations takes a back seat to create a secure future. Your financial plan must adapt and reallocate resources to accommodate new goals like saving for education or building an emergency fund to safeguard your family's well-being.

  4. Investing in Tomorrow: Children are the architects of tomorrow's world. Investing in their education, health, and overall well-being not only ensures their success but also contributes to the prosperity of our society as a whole. Whether it's setting up a Registered Education Savings Plan (RESP), or investing in environmentally sustainable initiatives, or showing them how behaviours create a ripple effect from their peers to their environment, your decisions today shape the world they'll inherit.


So, how can we adapt our lives to embrace the changes that come with parenthood?


  1. Review and Adjust: Take stock of your current financial situation and reassess your goals in light of your new familial responsibilities. Are your savings and investment strategies aligned with your evolving priorities? Make adjustments as needed to ensure your plan remains on track.

  2. Budget Wisely: With additional expenses on the horizon, budgeting becomes more critical than ever. Identify areas where you can cut back or reallocate funds to accommodate the needs of your growing family. Consider creating a dedicated child-related budget to track expenses effectively.

  3. Plan for the Unexpected: Parenthood brings a host of surprises, both joyful and challenging. Build a robust emergency fund to weather any unexpected expenses or income disruptions that may arise. Having a financial safety net provides peace of mind and ensures you're prepared for whatever life throws your way.

  4. Seek Professional Guidance: If navigating the complexities of financial planning feels overwhelming, don't hesitate to seek advice from a trusted financial advisor. They can offer personalized guidance tailored to your unique circumstances and help you develop a comprehensive plan to secure your family's financial future.


Embracing parenthood is not just a journey of love and growth; it's also a journey of financial responsibility and foresight. By adapting our financial plans to accommodate the needs of our children, we not only safeguard their future but also pave the way for a brighter tomorrow for all Canadians.


Here's to a future filled with prosperity, security, and endless possibilities for our children. If you have any questions, reach out to us at theteam@waverleywealth.ca and we would be happy to help!

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