When Jessie Weel-Bannon learned she was pregnant with her first baby, the townhouse she shared with her husband in Toronto suddenly seemed much smaller. ?When you grow up in the suburbs, it?s hard to picture raising kids in a small space,? she says. More than a year later, as the couple begins to adjust to family life with five-month-old Reese, they still haven?t decided whether to upgrade to a larger home in the current market or stay put for now.
Upsizing is not the only financial decision new parents face. Growing your family can mean reworking your budget and making tough choices. Here?s how to tackle some of the biggies.
Buy vs. rent

Many parents decide to find a larger home to accommodate a growing family, but that?s not always the best course of action. ?When kids are really little, they don?t need more space,? says Jason Heath, a financial planner at Objective Financial Partners in Toronto. His advice: If you live in an area with a heated real estate market, stay in your smaller home for a bit to see how much space you actually need. As for deciding whether to rent or buy, it?s time to banish the idea that renting is akin to throwing money away. ?Some cities are renters? markets and some are buyers? markets,? says Heath. ?Depending on where you live, renting as you save in your kids? early years could be a good thing.? Remember though, that as a renter, you won?t be building up home equity to rely on in later years, so you?ll need to put extra effort into saving fo...