When does the Canada Child Benefit (CCB) start?

The CCB starts once you register your child's birth and apply for benefits. You should apply for the CCB through CRA My Account or Service Canada as soon as possible after birth — do not wait. The CCB is not retroactive beyond 11 months, so the sooner you apply, the sooner payments start. For 2026, the maximum CCB is approximately $7,437 per year for a child under 6 and $6,275 for a child aged 6–17, depending on family income. The CCB is tax-free and paid monthly.

How long is parental leave in Canada?

EI maternity leave is 15 weeks at 55% of insurable earnings (up to $34,694 maximum in 2026). Parental leave adds either: Standard parental leave — 40 weeks (one parent) or 69 weeks (split between two parents) at 55%; or Extended parental leave — 69 weeks (one parent) or 86 weeks (split) at 33%. One parent gets a 5-week "use it or lose it" parental sharing benefit to encourage both parents to take leave. Benefits start after a 1-week waiting period. You must have accumulated at least 600 hours of insurable employment in the past 52 weeks to qualify.

When should I open an RESP for my baby?

As early as possible — ideally in the year of birth. The federal government provides the Canada Education Savings Grant (CESG) of 20% on the first $2,500 contributed annually, up to $500/year. Unused CESG room carries forward but only to age 17 (with some restrictions after age 15). Early contributions benefit from more years of tax-deferred compounding. For lower-income families, the Canada Learning Bond (CLB) provides an additional $2,000 ($500 in year one + $100/year for up to 15 years) and is entirely free — no contributions required.

Do I need life insurance after having a baby?

Yes — if your child depends on your income, life insurance is a financial necessity. The general rule is to have enough coverage to replace your income for the years until your child is financially independent (typically 18–25 years). A common starting calculation: 10–12× your annual income. Term life insurance (10- or 20-year term) is the most cost-effective option for young parents. A healthy 30-year-old can get $500,000 of 20-year term coverage for approximately $20–$35/month. Do not delay — an infant means the income-replacement need is at its highest.

What benefits can I claim on my tax return after having a baby?

Several federal and provincial tax credits apply to new parents. The Child Care Expense Deduction (Line 21400) lets you claim eligible daycare and caregiver costs — generally up to $8,000 per child under 7. The Canada Child Benefit (CCB) is non-taxable and does not appear on your return. RESP contributions are not deductible. Many provinces also offer baby bonuses or infant/family benefits at the provincial level — Ontario, Quebec, and BC all have provincial child benefit supplements. Claiming child care expenses on the lower-earning spouse's return generally maximizes the benefit.

What happens to my TFSA and RRSP after having a baby?

Nothing happens automatically, but your financial priorities shift. During parental leave, your income drops substantially — this is an ideal time to make RRSP withdrawals at a low marginal rate if you have RRSP assets (your income is temporarily low). TFSA contributions should continue to the extent you can afford them. The RESP competes with RRSP and TFSA for limited dollars — the CESG's guaranteed 20% return often makes RESP the priority for at least the first $2,500/year before maximizing RRSP/TFSA beyond employer match contributions.

Finances After Having a Baby in Canada | Your First-Year Financial Checklist

Finances After Having a Baby in Canada

Having a baby triggers a cascade of financial decisions — many with time-sensitive deadlines. Here is a structured checklist for the first year.

The Quick-Action Checklist (First 60 Days)

Action	Deadline	Why urgent
Register the birth	Within 30 days (province varies)	Required for all downstream benefits
Apply for SIN for the baby	As soon as birth registered	Needed for CCB, RESP
Apply for Canada Child Benefit (CCB)	ASAP — not retroactive beyond 11 months	Monthly payments start only after application
Apply for EI maternity/parental leave	First day of leave (or up to 4 weeks before birth)	1-week waiting period applies
Add baby to provincial health insurance	Within 30–90 days (varies by province)	May face waiting period if late
Add baby to group benefits (employer health/dental)	Within 31 days of birth (most plans)	Late additions may require medical evidence
Update life insurance beneficiary	No hard deadline but do it now	Ensures proper protection
Update will	No hard deadline but critical	Appoint a guardian for your child
Open RESP	No deadline but sooner = more compounding	CESG starts accruing from year of opening

Canada Child Benefit (CCB): 2026 Amounts

Child’s age	Maximum annual CCB (2026)	Notes
Under 6	~$7,787	Tax-free, monthly payments
6 to 17	~$6,570	Tax-free, monthly payments

CCB phases out based on family net income:

Below ~$36,502: maximum benefit
Phase-out rates: 13.5% (one child) to 23.2% (three+ children) of income above threshold

Apply: Through CRA My Account, or use the RC66 (Canada Child Benefits Application) form.

EI Parental Leave: What You Actually Receive

Leave type	Weeks	Rate	Max weekly benefit
Maternity (birth parent only)	15 weeks	55%	~$668/week (2026)
Standard parental	40 weeks (one parent)	55%	~$668/week
Extended parental	69 weeks (one parent)	33%	~$401/week
Parental sharing bonus	5 weeks extra	55%	If both parents take leave

Qualification: 600 insured hours of employment in the past 52 weeks. Benefits are taxable — employer top-up plans supplement EI but EI benefits themselves are reported on a T4E and taxed as income.

RESP: Open It Early

RESP basics	Details
Annual CESG	20% of first $2,500 contributed = $500/year
Lifetime CESG maximum	$7,200 per child
Canada Learning Bond (CLB)	$500 in year 1 + $100/year for qualifying low-income families
Contribution lifetime limit	$50,000 per beneficiary
Best year to open	Year of birth — captures the early CESG room

RESP priority vs RRSP/TFSA

Why RESP first (up to $2,500/year)	Why RRSP/TFSA first
20% CESG = guaranteed return	RRSP tax deduction is valuable if in high bracket
CLB is entirely free money	RRSP room expires only at death
No tax while invested	TFSA more flexible for other goals

General rule: Contribute $2,500/year to RESP to capture the full $500 CESG, then direct remaining savings to RRSP (if high earner) or TFSA.

Life Insurance After Your Baby Arrives

Scenario	Recommended coverage
One income, one parent at home	15–20× primary income
Two incomes	10–12× each income
New parent, no existing coverage	20-year term, $500,000–$1,000,000
Existing coverage — review	May need to increase as responsibility grows
Stay-at-home parent	Needs coverage too — replacement cost for childcare, household management is $30,000–$80,000/year

Approximate monthly premiums (healthy, non-smoker, 30 years old):

Coverage	20-year term male	20-year term female
$500,000	~$25–$35/month	~$20–$30/month
$1,000,000	~$45–$65/month	~$38–$55/month

Updating Your Will and Beneficiaries

Document	What to update
Will	Add your child as a beneficiary; appoint a guardian
RRSP beneficiary	Update to surviving spouse; set up contingent beneficiary for child
TFSA beneficiary	Similar to RRSP
Life insurance	Update beneficiary; name a trustee if child is minor
Group benefits	Add child as dependent; update beneficiary on group life

Important for minors: Naming a minor directly as a beneficiary can be problematic — they cannot receive assets directly until they are adults. Use a trustee designation or set up a testamentary trust in your will.

Tax Benefits in the First Year

Benefit	How to claim
Child care expenses (Line 21400)	Claim on the lower-income spouse’s return; retain receipts
CCB	Applied for separately — not a return deduction
Ontario Child Benefit (OCB)	Automatic with CCB application
Quebec Family Allowance (QPP)	Automatic in Quebec
Medical expenses for birth	Eligible — claim on Schedule 1
Disability tax credit (if child has disability)	Apply with Form T2201

Budget Impact in the First Year

New expense category	Typical annual cost
Diapers and wipes	~$1,000–$1,800
Formula (if not breastfeeding)	~$1,800–$3,000
Baby gear (stroller, crib, car seat)	~$1,500–$4,000 (one-time)
Childcare / daycare (if both working)	$8,000–$25,000+ depending on city
Increased food budget	~$600–$1,200/year eventually
Clothing	~$300–$800/year

Having a baby is a significant budget expansion in the first few years. The CCB (up to ~$7,787/year) offsets a meaningful portion of these costs for families in moderate income ranges.

Bottom Line

The most important financial actions in the first 60 days are: register the birth, apply for the CCB, apply for EI, update life insurance, and open an RESP. The financial complexity grows quickly, but these steps ensure all available benefits are flowing and the critical protections are in place. A new baby is also the clearest possible signal to update your will and make sure someone is named guardian for your child.