Short answer
Start with the leave gap: your usual monthly take-home minus what reaches your account during leave, times the months of leave. Save that buffer before the birth. In Canada, EI parental benefits pay 55% of earnings up to $729 a week; US FMLA leave is unpaid. Then budget for childcare, supplies and health costs.
What parental leave pays, in Canada and the US
The leave gap is the biggest number in a first-year budget, so start with what the public programs pay. Figures below are from the official pages, checked on 30 October 2026; your employer may top them up.
| Program | Length | Pays |
|---|---|---|
| Canada: EI maternity | Up to 15 weeks | 55% of earnings, up to $729 a week |
| Canada: EI standard parental | Up to 40 weeks shared between parents; one parent can take at most 35 | 55%, up to $729 a week |
| Canada: EI extended parental | Up to 69 weeks shared; one parent can take at most 61 | 33%, up to $437 a week |
| US: FMLA | Up to 12 workweeks in a 12-month period, for the birth and care of a newborn within one year | Unpaid, job-protected, for eligible employees |
Sources, checked 30 Oct 2026: EI maternity and parental benefits (canada.ca); FMLA (U.S. Department of Labor). Quebec runs its own parental insurance plan, and many US states and employers add paid leave; check your own program and employer policy.
Size the leave gap before the baby arrives
Two numbers decide the buffer you need: how much less reaches your account each month during leave, and for how many months.
- AUsual take-homeWhat reaches the account in a normal month
- BTake-home on leaveBenefits plus any employer top-up, after tax
- A − BMonthly gapThe shortfall each month of leave
- Gap × monthsLeave bufferSave it before the birth
An example to show the arithmetic: if the household’s take-home drops by $1,500 a month for 9 months, the buffer is $13,500. Saved over the 6 months before the birth, that is $2,250 a month. If that is out of reach, the gap tells you how much to trim from the budget during leave instead.
In Finman, make the buffer a savings goal: name it, set the amount and the date, and My plan on the AI page works out the monthly amount, while What if shows how many months it takes at your current pace. Our guide to building an emergency fund covers where to keep the money, and the emergency fund calculator gives the target and the date.
Costs to plan for in the first year
Prices vary too much by city and choice to quote one number. Build the categories now and fill them from your own quotes and receipts.
- 01Childcare. The largest new fixed cost once leave ends. Get quotes and waitlist dates early; many centres take deposits.
- 02Diapers, wipes and formula. A repeating cost that changes size every few months. Track it as its own category.
- 03Health costs. Prescriptions, extra visits and anything your plan does not cover.
- 04Gear. Car seat, stroller, crib. Decide what to buy new, what to borrow and what can wait.
- 05Insurance and paperwork. Adding the baby to health and life insurance, and the benefit applications for your country.
- 06The small-purchase tail. Dozens of small reactive buys. Give them a category with a monthly limit so a heavy month reads as planned.
A first-year money timeline
| When | Money jobs |
|---|---|
| 3–6 months before | Size the leave gap, start the leave-buffer goal, apply for leave at work, get childcare quotes, record three months of spending as your baseline |
| Weeks 0–12 | Apply for benefits on time, let the baby category absorb the chaos, glance at the budget weekly for 10 minutes |
| When leave ends | Rebuild the budget around childcare and the return of full pay, refill the buffer if it was used, restart retirement and goal contributions |
Finman projects your balance up to 90 days ahead from the last 90 days of income, spending and recurring payments. The forecast learns about the leave only once the lower income arrives, so read it again after the first month of leave and after childcare starts.
Set up the leave buffer tonight
Create a savings goal for the leave gap, add a baby category with a limit and share the household account with your partner. Free during the open beta, no card.
Start your new-parent budgetOne budget two tired parents can run
The common first-year problem is two people tracking the same money from different information: one paid the daycare deposit, the other did not know. In Finman one person creates a family, the others join with an invite code and their own login, and the owner of each account chooses what every member may do with it: view it, add transactions to it, edit it or delete it. Accounts you do not share stay visible only to you. Transactions a member adds to your shared account land in that account’s history, so your budgets and reports count them.
- 01Share the household account before the birth. While you both still have time to set it up.
- 02Give both parents the right to add transactions. The 2 a.m. pharmacy run gets logged from whichever phone is closest, also offline.
- 03Photograph receipts. Point the phone camera at the receipt, check the merchant, total and date, save.
- 04Watch the 80% flags. Finman flags a budget once 80% of it is spent or when the pace will break it before the month ends.
- 05Ten minutes a week. A short weekly look beats a monthly audit nobody has the energy for in the first months.
For the mechanics of sharing between partners, see a joint budget in five steps; for the whole household, the family finance app guide. During the open beta every feature is free and no card is asked. After the beta, the Family plan is listed at $19 a month for up to 5 family members.
Finman runs the household money and the scenarios. It does not calculate your exact benefit entitlement or tax credits; use the official pages above, and a professional for insurance and education savings decisions.
Frequently asked questions
How should new parents budget for the first year?
Size the leave gap first: usual monthly take-home minus take-home during leave, times the months of leave. Save that buffer before the birth, add categories for childcare, diapers and formula, health costs and small purchases, and rebuild the budget when leave ends and childcare starts.
How much does EI parental leave pay in Canada?
According to canada.ca, checked on 30 October 2026, EI maternity and standard parental benefits pay 55% of earnings up to $729 a week, and extended parental benefits pay 33% up to $437 a week. Standard parental benefits run up to 40 weeks shared between parents, extended up to 69 weeks shared.
Is parental leave paid in the US?
The federal FMLA gives eligible employees up to 12 workweeks of unpaid, job-protected leave in a 12-month period for the birth and care of a newborn. Some states and employers add paid leave, so check your state program and employer policy.
How big should a parental leave buffer be?
Multiply the monthly drop in take-home pay by the number of months of leave. For example, a $1,500 monthly gap over 9 months needs a $13,500 buffer, or $2,250 a month if you save it over the 6 months before the birth.
Can both parents use the same budget in Finman?
Yes. One parent creates a family, the other joins with an invite code and their own login, and the household account is shared with the right to add transactions. Spending either parent logs there counts in that account’s budgets.
Is Finman free?
During the open beta every feature is free and no card is asked. After the beta, the Family plan is listed at $19 a month for up to 5 family members.
Plan the first year on your own numbers
Leave-buffer goal, baby category with alerts, one household account for both parents. Free during the open beta, no card.
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