Start Saving for your newborn before even leaving the pregnancy room

We all love the smell of a new car or the feeling of moving into a new house. But as  a parent, there is no better feeling than that of having a new baby, especially if it is the first one in the family!

Amid all the excitement and joy of having a new baby, parents often forget one very important aspect which often comes back to hurt them late on in life: that this small and tiny baby will one day grow up and hopefully attend a good post-secondary institution.  We all know how much school costs these days and how much more it will cost in a decade or two from now.

Start saving for him now!

Knowing that school costs a lot these days and will cost a lot more in the future, it is wise to start saving for your new born child before even leaving the hospital! Yes, while still in hospital to deliver the baby, ask your husband to open a new account in the baby’s name (assuming you have picked a name for the newborn) Be sure that this is a high interest saving account, preferably a GIC one, so you can get the maximum interest possible by the time you withdraw the money for him when he reaches adulthood.

RESP and other Registered Education Saving Accounts

In Canada, the government offers the RESP (Registered Education Savings Program) which helps you save for your child’s post-secondary education.  The government, in turn, offers/matches your contributions through the Canada Education Savings Grant and the Canada Learning Bond exclusively to RESP subscribers.  Similar programs are offered in other countries and it is wise to make use of them early on. The earlier you start the better it is for your child’s savings.

Secondary savings options

In addition to the saving methods outlined above, you have other options at your disposal, including something as basic as a piggy bank where you and the family agree to put as much or as little as you can spare in it. Over the years, you can end up with thousands of dollars in there. You can also consider buying stocks in your portfolio for your new-born and vowing not to cash it out until they reach their adulthood which could potentially have multiplied, tripped, quadrupled or more in value by then


Whatever or however you decide to save, the important thing is to start saving as soon as they are born. In fact you can go one step further and do it as soon as the wife is admitted to the hospital or is in labor! The idea is to commit to it from day one and we know day one starts at the hospital.  And don’t make the mistake of assuming they are still too young and that there is enough time to start saving later in life. As long as you start saving early, it doesn’t matter how much you actually set aside for them for now. You can start small and grow your contributions as they get older. Just like you wished you had more money to pay for your school, your kids will thank you for having saved this money for them so they can actually focus on studying and not working two jobs to pay for their school!