LGBTQ+ family planning: How to financially prepare for parenthood
Understand the costs of starting a family and make the most of the financial advice and support available.
Jun. 20, 2022
5-minute read
Having a child may be one of the most rewarding and life-changing decisions you’ll ever make, and over the last couple of decades the number of LGBTQ+ parents in Canada has steadily grown. Family planning can also require financial planning, especially for parents who may need to rely on non-traditional means of having children. Here are some important things to consider for LGBTQ+ individuals who are thinking about parenthood.
Starting a family: how and how much?
There are many different ways to plan for a family. While costs can vary widely depending on where you live1, here are some common pathways to parenthood to consider.
Adoption
What it is: Becoming the legal parent of a non-biological child and raising them as your own.
What it could cost: Adopting through the public system usually doesn’t require a fee, but most private adoptions can range from $15,000 to $20,000 for a child born in Canada, and from $25,000 to $50,000 for a child born in the United States or overseas.
Intrauterine insemination (IUI)
What it is: A process where sperm is placed directly into the uterus to fertilize an egg. This method is often used by female same-sex couples and single women using donor sperm.
What it could cost: The cost for this procedure can range from $750 to $2,150, including medications. Some provinces in Canada offer financial support: Manitoba, Ontario, Quebec and New Brunswick. The cost of donor sperm varies from bank to bank but ranges between $1,000 and $2,000 per cycle.
In vitro fertilization (IVF)
What it is: A combination of medicines and surgical procedures to combine eggs and sperm in a laboratory, then implant the embryo in the uterus.
What it could cost: Costs for IVF vary depending on the clinic and the province where you live — you’ll pay more in Ontario versus Manitoba, for example. Expect to pay between $13,000 and $17,000 per cycle, when you factor in drugs, tests and clinical consultation. However, some provinces have funding programs that can significantly reduce the costs.
Surrogacy
What it is: Surrogacy is when a woman, known as a surrogate, carries a baby in her womb for someone else, such as a same-sex male couple. The surrogate herself may be the egg donor, or a fertilized egg from another donor may be transplanted using IVF.
What it could cost: While it’s illegal in Canada to pay for surrogacy, costs will generally include IVF treatments and any additional expenses a surrogate may incur, like transportation costs or reimbursement of lost wages.
Getting financially prepared for parenthood
Having a clear view of your budget and cash flow can help you manage any initial family planning expenses as well as the ongoing costs of raising children. Here are some tips to help you start your family on good financial footing.
1. Get all the financial support you can
Depending on where you live, your province may cover the cost of some fertility procedures like IVF, IUI or fertility preservation. Plus, you may also be eligible for the federal medical expense tax credit Opens in a new window..
The 2022 Federal Budget also proposed expanding the medical expense tax credit to other items such as expenses paid on behalf of a surrogate Opens in a new window..
Your employer may provide some financial support too. More and more companies are expanding health benefits to include coverage for fertility treatments. Check your employee benefits package to confirm what’s included.
2. As your family evolves, so does your budget
Above the cost of various family planning options, it’s estimated that the average cost of raising a child in Canada until the age of 18 is about $10,000 to $15,000 a year. Look at your debt levels, review your savings and trim your spending habits to make sure you can factor in this additional cost. Also consider gaps in your future cash flow like maternity or paternity leave and additional costs like childcare.
Online tools can give you a snapshot of your finances as you prepare for a new family member. Try our Budget Calculator.
3. Give yourself and your family a cushion just in case
Despite all your planning, financial hardships or unanticipated expenses can happen. Consider creating an emergency fund to cover roughly 3 to 6 months of expenses without income. Consider keeping your emergency fund in a stable, accessible investment like a savings account or money market fund, and make regular deposits to build it up.
4. Get expert advice at every stage
More than half of LGBTQ+ Canadians felt that finances were an obstacle to starting a family, according to a recent CIBC poll. An advisor can help you find opportunities to make it work for you, from mapping out how having a child will fit with your overall financial goals to exploring the saving and borrowing options available to help you get there.
Everyone’s road to parenthood is different. Start your journey with a solid financial plan so you can enjoy the special moments along the way.
Need some financial advice?
Book a chat with one of our advisors. They can help set you up for success, today and into the future.
