Canada is the best place to move to with your family because life in Canada is incredible. It offers many opportunities, not only to its citizens but to foreign nationals worldwide.
Due to economies falling worldwide and political tensions continuing to rise, it is not easy to feel safe in most places or to have a clear vision of a bright future.
Although financial planning may seem daunting for some at first, it is easier than you think. Just follow these four simple steps:
Step 1: Create A Household Budget
While having children is an incredible thing, it costs a lot of money. Whether you have one or four children, if you do not have a proper household budget to stick to, you may be in trouble.
The more dependents you bring with you to Canada, the more expensive your cost of living will be.
Raising a child in Canada costs between CA$10,000 and CA$15,000 per year until they turn 18. This figure only considers the child’s basic needs and excludes any additional activities, lessons, or sports your child may want to participate in.
Given how high your expenses will be per child, it is best to establish a household budget even before your baby is born. If you already have children, you can work with this figure per child per year, just to be safe.
To plan your household budget, you must consider all of your most basic expenses, including:
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- Food
- Rent
- Utilities
- Clothing
- Healthcare
Education
- Transportation
Once you have covered your basic expenses, you can focus on the amount of money you want to save. To reduce the cost of living, it is best to avoid any unnecessary expenses or overspending in Canada.
Step 2: Create an Emergency Fund
While saving money for that holiday in Canada with your family is important, so is saving enough money in an emergency fund. This is very important if you have a family, as unexpected expenses can pop up at any given time, including a job loss or a family member getting ill.
Your goal with an emergency fund is to increase it so that you have three to six months of money in the cost of expenses saved at any time when an emergency occurs.
The best way to secure your emergency fund is to transfer it to a specific savings account.
Step 3: Save For Educational Expenses
Although public school is paid for by the Canadian government, if you want to send your children to universities, you have to save for it.
Since Canada has some of the best universities in the world, this does not come cheap, so it is best to start saving as soon as possible.
According to some of the top universities in Canada, you can expect to pay anywhere from CA$6,463 annually for an undergraduate degree and CA$7,056 annually for a graduate degree.
Apart from tuition fees, you must also consider additional expenses, including travel expenses and student accommodation.
Step 4: Get a Life insurance
It is common thing that many families do not have life insurance. However, if you have children and live in Canada, it is recommended, especially because of the difficult and unprecedented times we live in with the Covid-19 pandemic.
When you get life insurance, it may add an expense to your monthly budget, yet it is necessary if you want to guarantee protection, security, and a good future for your family.
Life insurance can help you protect the people that you care most about if something bad happens to either you or your spouse/ common-law partner.
You can find an affordable monthly premium to pay over 10, 20, or 30 years that will suit your budget and help you plan for the future.
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