Family budget in Quebec: a simple method

The 4-step method

Start from your real take-home pay, not your gross salary:

• 1. Household take-home pay, plus the family benefits received each month.
• 2. Fixed costs: housing, Hydro-Québec, insurance, transportation, childcare.
• 3. Variable costs: groceries, clothing, kids' activities, outings.
• 4. Automatic savings: emergency fund, RESP, then TFSA or RRSP, paid first every payday.

Childcare: subsidized daycare or private daycare

A reduced-contribution spot (CPE or subsidized daycare) costs a fixed daily rate set each year by the government. At a non-subsidized daycare you pay the full rate, but Revenu Québec's refundable childcare tax credit pays back part of it, and can be paid in advance each month if you apply. Compare the net cost of both options in your budget.

Family Allowance and Canada Child Benefit

Quebec families can receive Retraite Québec's Family Allowance and the federal Canada Child Benefit (CCB). Amounts depend on family income and the number of children; they are paid quarterly (Family Allowance) or monthly (CCB). File your tax returns every year, even with no income, to keep receiving them.

RESP: CESG and QESI for Quebec families

In Quebec, an RESP contribution earns two grants: the federal CESG at 20% (up to $500 a year, $7,200 lifetime) and Quebec's QESI at 10% (up to $250 a year, $3,600 lifetime). Contributing $2,500 a year per child therefore earns up to $750 of grants a year.

Example: a family of four's budget

Illustrative example: $7,200 take-home per month. Housing $1,900, childcare $450, transportation $700, groceries $1,200, insurance and Hydro $400, kids and leisure $600, miscellaneous $650, savings $1,300 (RESP $420, emergency fund $400, TFSA $480). Adjust each line to your situation in NorthWorth's free budget.