The old parenting model of mothers as Homemaker and fathers as Breadwinner is giving way to a growing change about who keeps the home fires burning.  Recent figures from Statistics Canada reveal Canadian couples are re-balancing the work of supporting a family. In 1976, when new fathers rarely crossed the threshold of hospital delivery rooms, stay-at-home dads represented only one per cent of families with a stay-at-home parent. More than thirty years later, by 2008 that number had grown to 13 per cent.

While Canadian women gain ground as primary breadwinners and more fathers take on the role of caregiver, the question of how to balance family and finances remains. According to Aurele Courcelles, financial planning expert at Investors Group, deciding which spouse will take time off work and how to adjust to life on one income are part and parcel of new parenthood.

“Fatherhood brings all kinds of new challenges, from sleep deficits to budget shortfalls,” said Aurele.  “While you’re taking on these new responsibilities, it’s important to ensure that your long-term financial goals stay on track.”Deciding whether Mom or Dad will stay home with the kids often comes down to a few factors like who makes more money or whose career would be most affected by an interruption. But once the decision is made, it’s important to keep your finances on track as you adjust to the new reality of parenthood.

Financial Tips for Stay at Home Parents:

1.  Create a budget and stick to it.
Often, one of the first financial challenges of parenthood is adjusting to life on a lower family income. This may mean juggling your spending habits so that more money goes to diapers and less to restaurants. In any case, create a budget and track your spending to ensure that money out does not exceed money in.

2.  Manage your debt load.
Becoming completely debt-free may not be an option, but on a lower combined income you’ll need to ensure that your debt payments are manageable. Try to reduce your debt load as much as possible before you leave the workforce. Alternatively, while on leave you could adjust your debt payments so that you have more room in your budget for other essentials.

3.  Check your insurance coverage.
If you had health, life and disability insurance coverage through your workplace plan, you may need to fill that gap now. Check your spouse’s plan to make sure that you’re covered, but if not, you might consider purchasing a plan.

4.  Don’t ignore free money.
Take advantage of any government benefits and tax credits that apply to you, like the Universal Child Care Benefit, the Child Tax Credit and claim any applicable child care.

5.  Create a will and keep it up-to-date.
A will not only allows you to recommend a guardian for your children in case something happens to you and your spouse, it also sets out how they will receive your money. Keep your will up-to-date as your family grows or your financial situation changes.

6.  Stay flexible.
You may have left your job, but you may not need to leave the workforce altogether. If it works for your family, you might consider earning extra money by taking on part-time work or working from home.

7.  Get advice.
A financial advisor can help you bring all these elements together and create a plan that addresses your family’s needs.