A Financial Checklist for New Parents in Ontario
A financial checklist for new parents in Ontario: EI leave, Canada Child Benefit, RESP grants, wills, beneficiaries, insurance and childcare, in order.
New parents get a lot of advice about sleep and almost none about money. Yet a baby changes nearly every line of a household’s finances in the same year, and a handful of decisions made in the first few months will echo for two decades.
The full checklist for Ontario parents runs like this: apply for EI leave, register the baby, claim the Canada Child Benefit, add the baby to health coverage, insure both parents, write wills, fix beneficiary designations, open an RESP, and rebuild the budget for childcare. None of it is complicated. The trick is doing it in the right order, before the fog of the first year makes everything harder.
This article is organised by time: before the birth, the first month, the first year, and the years after. Tick through it at your own pace. Where insurance is the answer, we’ve said so plainly; where it isn’t, we’ve said that too.
Before the baby arrives
Apply for EI maternity and parental benefits
Employment Insurance is the backbone of most parental leaves in Canada. The birthing parent can claim maternity benefits for up to 15 weeks at 55% of average insurable earnings, up to the annual maximum. Parental benefits can be shared between parents and come in two flavours:
| Option | Total shared weeks | Maximum for one parent | Rate |
|---|---|---|---|
| Standard parental | Up to 40 | 35 | 55% of insurable earnings |
| Extended parental | Up to 69 | 61 | 33% of insurable earnings |
You choose standard or extended when you apply and the choice is binding once benefits start, so run the numbers on both. Some employers top up EI for part of the leave; check your contract or HR policy. Self-employed parents can only claim if they registered for EI special benefits at least 12 months earlier, which is the single most-missed item on this list.
Check your workplace benefits
Two things to find out before the birth: the deadline for adding a dependant to your health and dental plan (often within 31 days of the birth), and whether your group life and disability coverage continues during leave and who pays the premium.
Apply for life insurance while you’re healthy and young
Life insurance is priced at the age and health you have on the day you apply. Applying during a healthy pregnancy is normal, and getting it done before the birth means one less task afterwards. Indicatively, a healthy non-smoking 30-year-old can buy $500,000 of 20-year term life for roughly $20–$30 a month, and a 35-year-old for roughly $25–$38; women pay somewhat less and smokers considerably more. These are illustrations, not quotes. See life insurance for new parents for sizing.
Build or top up the emergency fund
Three months of expenses is the usual target. During parental leave, income drops to 55% or 33% of normal while expenses rise, so the fund earns its keep in the first year even if nothing goes wrong.
The first month
Register the birth (and let the paperwork chain run)
Ontario’s online newborn registration service does four things in one application: registers the birth, orders a birth certificate, enrols the baby in OHIP, and applies for a Social Insurance Number. It can also forward a Canada Child Benefit application to the CRA. Do this first; most other items depend on it.
Claim the Canada Child Benefit
The CCB is a tax-free monthly payment based on family net income and the number and ages of children. Amounts are recalculated each July from the prior year’s tax returns, which means both parents need to file every year, even with no income, to keep it flowing.
Add the baby to your health and dental plan
OHIP covers the baby’s doctor and hospital care, but not prescriptions outside hospital (beyond OHIP+ for those under 25 with no private plan), dental, glasses or paramedical services. Add the baby to a group plan inside the enrolment window. If neither parent has a plan, a family health and dental policy fills the gap; indicative cost for a family runs roughly $150–$300+ a month depending on limits.
Update every beneficiary designation
Life insurance, group life, RRSPs, TFSAs and pensions all carry their own beneficiary instructions, and none of them update when a child is born. Most parents name their spouse as primary beneficiary and their children as contingent beneficiaries. If you name a child directly, also name a trustee: a minor can’t receive the money, and without a trustee it may be held by the court until age 18. See how to choose a life insurance beneficiary.
The first year
Insure the parents properly
This is the section where we have a professional interest, so we’ll be direct: two products matter, and the rest is optional.
Life insurance on both parents. Enough to clear the mortgage and replace an income until the child is independent, which for most families means $500,000 to $1 million per parent on a 20- to 30-year term. The stay-at-home parent needs coverage too; replacing their work costs real money. Group life through work is typically one or two times salary and ends with the job, so it’s a supplement.
Disability insurance on each earning parent. A parent who can’t work for a year is far more common than a parent who dies. EI sickness benefits pay 55% for up to 26 weeks; after that, without group long-term disability or an individual disability policy, the household is on its own. Individual coverage commonly costs 1–3% of the income insured, replaces 60–70% of it, and pays tax-free if you paid the premiums yourself.
Optional: critical illness. A lump sum on diagnosis of cancer, heart attack, stroke or another covered condition, useful for funding time off work during treatment. Consider it once the first two are in place. See is critical illness insurance worth it?
If you’ve already got the lender’s mortgage insurance, it’s worth comparing. It pays the bank, shrinks with the balance and is underwritten after a claim; a personal term policy pays your family a level amount. See mortgage insurance vs. life insurance.
Write wills and powers of attorney
A will does two things no insurance policy can: it names a guardian for your child, and a trustee to manage any money left to them until an age you choose. Without a will, an Ontario court decides guardianship, and the intestacy rules decide who gets what. Pair it with powers of attorney for property and personal care, so someone can act for you if you’re incapacitated rather than dead. A lawyer can usually do all of it for a fixed fee. Our article do I need life insurance and a will? explains how the two work together.
Open an RESP and collect the grant
A Registered Education Savings Plan is the one savings account with a built-in raise. The Canada Education Savings Grant adds 20% to the first $2,500 you contribute each year, up to $500 a year and $7,200 per child over their lifetime. Lower-income families may also receive the Canada Learning Bond with no contribution at all. Growth is tax-sheltered, and withdrawals for school are taxed in the student’s hands, usually at little or no tax.
You need the child’s SIN to open one, which is why the registration step comes first. If you can only manage a small amount, $210 a month captures the full grant.
Rebuild the budget around childcare
Childcare is usually the largest new expense and it arrives exactly when leave income ends. Ontario’s participation in the national child care agreement has lowered fees at participating licensed centres, but spaces are limited and waitlists are long in Ottawa and most of the province. Get on lists early, find out what your actual fee will be, and build the budget for the return-to-work month before you get there.
Year two and beyond
- Revisit coverage when circumstances change. A second child, a bigger mortgage or a new job with different benefits are all reasons to re-check life and disability amounts.
- Keep both tax returns current. The CCB, the Ontario Child Benefit and childcare deductions all depend on filing.
- Claim what you’re entitled to. Childcare expenses are generally deductible by the lower-income spouse; medical expenses not reimbursed by a plan may qualify for a tax credit. An accountant can confirm what applies to you.
- Use the TFSA and RRSP deliberately. Once the RESP grant is captured and insurance is in place, direct extra savings by tax situation: RRSP contributions for a higher-earning parent, TFSA for flexibility. See life insurance vs. RRSP for how insurance fits alongside.
- Review the will every few years, and any time a guardian’s circumstances change.
The complete checklist
| Timing | Item | Done |
|---|---|---|
| Before birth | Apply for EI maternity/parental benefits (self-employed: register 12 months ahead) | ☐ |
| Before birth | Confirm group benefit deadlines and leave-period coverage | ☐ |
| Before birth | Apply for term life insurance on both parents | ☐ |
| Before birth | Top up the emergency fund | ☐ |
| First month | Register the birth online (birth certificate, OHIP, SIN) | ☐ |
| First month | Apply for the Canada Child Benefit | ☐ |
| First month | Add the baby to health and dental coverage | ☐ |
| First month | Update all beneficiary designations; name a trustee for minors | ☐ |
| First year | Put disability insurance on each earning parent | ☐ |
| First year | Consider critical illness coverage | ☐ |
| First year | Sign wills naming a guardian and trustee; sign powers of attorney | ☐ |
| First year | Open an RESP and contribute enough to collect the full grant | ☐ |
| First year | Budget for childcare; join waitlists early | ☐ |
| Ongoing | File both tax returns every year; review coverage and wills as life changes | ☐ |
Where Hayes fits in
Most of this checklist has nothing to do with us. Registering a birth, claiming the CCB and opening an RESP are things you’ll do with the government and your bank. Two items are ours: putting the right life and disability coverage on both parents, and making sure the beneficiary designations behind it are correct.
Hayes Family Insurance has been helping Ontario families with exactly this since 1996. We compare 30+ Canadian insurers, we’ll tell you when a cheaper policy is the better one, and our advice costs nothing because insurers pay us.
Compare quotes from 30+ Canadian insurers in about two minutes, free and with no obligation. Or contact us and we’ll help you work through the insurance rows on the checklist.
Frequently asked questions
How much is the Canada Child Benefit and how do I apply?
The Canada Child Benefit is a tax-free monthly payment from the federal government based on your family's net income and the number and ages of your children; the amount is recalculated every July using the previous year's tax returns. The simplest way to apply is through Ontario's online newborn registration service, which can send the application to the CRA. Both parents must file a tax return every year to keep receiving it.
How does EI parental leave work in Canada?
The birthing parent can claim up to 15 weeks of EI maternity benefits at 55% of average insurable earnings, up to the annual maximum. Parental benefits can be shared between parents and come in two versions: standard, up to 40 weeks shared (35 for one parent) at 55%, or extended, up to 69 weeks shared (61 for one parent) at 33%. Self-employed parents can qualify if they registered for EI special benefits in advance.
What is the RESP grant and is it worth it?
The Canada Education Savings Grant adds 20% to the first $2,500 you contribute to a Registered Education Savings Plan each year, up to $500 per year and $7,200 per child over the child's lifetime. Lower-income families may also qualify for the Canada Learning Bond without contributing anything. A guaranteed 20% return on contributions is hard to beat, so most families should contribute at least enough to collect the full grant.
Do new parents really need a will?
Yes. A will is where you name a guardian for your child and a trustee to manage any money left to them; without one, an Ontario court decides guardianship and any inheritance for a minor may be held by the court until age 18. Wills should be paired with powers of attorney for property and personal care. Most couples can have both done by a lawyer for a modest fixed fee.