How much should a family save each month?

There is no single figure. Work back from goals: an emergency fund first, then the amounts that collect an employer match and the RESP grant, then retirement and the mortgage. The budget tracker shows what is realistic.

Should we pay down the mortgage or invest?

Compare your mortgage rate with what the money could earn after tax and how you feel about risk. At a low rate and a high tax bracket, an RRSP contribution often wins. Paying the mortgage is a guaranteed return and many families split the difference.

Who should claim child care expenses?

Generally the spouse with the lower net income, with limited exceptions. It needs earned income to claim against.

How much emergency fund do we need?

Start with one month of essential costs. Many planners suggest building to three to six months, and more where income is irregular.

The family financial plan | The Accounting Doc

Step one: see where it goes

Most families who earn well and feel stretched have the same problem: nobody has looked at the whole picture in one place. Not because they are careless. Because the money moves through four accounts and three cards and nobody has time.

Spend one evening with three months of statements and our family budget tracker. Groceries get their own tracker, because food is where most families find the first few hundred dollars a month.

Figure 1Where CAD 170,000 of household income goes before you spend any of it

Take-home payCAD 128,372
Income taxCAD 31,519
CPP and EICAD 10,109

Two incomes of CAD 110,000 and CAD 60,000, Ontario, 2026, basic credits only.

Step two: the order of operations

Once you know what is left each month, the question is what to do with it. The order matters more than the amounts.

Figure 2Give every dollar a job, in this order

1
A starter emergency fundOne month of essentials, in cash. It stops the next surprise going on a card.
2
Employer matchTake every dollar your employer will match.
3
High-interest debtCredit cards and store financing first, highest rate first.
4
A full emergency fundMany planners suggest three to six months of essentials. More if one income is commission or self-employment.
5
Tax-sheltered savingFirst home savings account, RRSP, TFSA and the RESP grant, matched to your goals.
6
Mortgage prepayment or other investingCompare your mortgage rate with what the money could earn after tax.

Step three: use the tax system on purpose

Families at this income leave money on the table in the same few places:

The wrong spouse claims. Child care is generally claimed by the lower-income spouse. Donations and medical expenses are usually better pooled on one return.
RRSP contributions go on the wrong return. At CAD 110,000 a CAD 10,000 contribution saves about CAD 3,174. At CAD 60,000 it saves about CAD 2,192. A spousal RRSP lets the higher earner take the deduction while the savings build in the other spouse's name.
The RESP grant goes unclaimed. The government adds 20 percent on the first CAD 2,500 contributed for each child each year.
Nobody claims the home office, the moving costs or the tuition carried forward.

None of this is aggressive. It is filing the return you are entitled to file.

Step four: protect it

Three things, done once and reviewed after any big life event:

A will and two powers of attorney for each adult. Without a will in Ontario, the law decides who gets what and who looks after the money for minor children.
Insurance that matches the risk. Life insurance while people depend on your income. Disability insurance, which most families under-buy, because your income is the largest asset you own.
Beneficiaries named on RRSPs, TFSAs, pensions and insurance, and checked after a marriage, separation or birth.

Step five: teach the kids while you do it

Children learn money from what they see. The conversation that works at any age is the one about needs and wants. "I need a PlayStation." No. You want one. You need shoes that fit. Wanting things is fine. Knowing the difference is the skill.

Our free kids money kit turns that into a 15-minute activity, a three-jar system for pocket money and a savings goal chart. The families who do it tell us the surprising part is how much the adults learn.

Step six: one review a year, on a date

Put these in the calendar now. Each takes less than an hour if the records are kept as you go.

Figure 3The family money year

January: new TFSA room, check RRSP and first home account room, set the budget.
February: RRSP contributions for last year, within the first 60 days.
March and April: gather slips and file both returns together.
September: RESP contribution, school costs, insurance renewal check.
December: donations, tax-loss review, medical receipts, next year's goals.

Worked examples

Illustrations built from the kinds of situations we see. They are not client files, and the numbers are simplified.

CAD 170,000 and nothing left

The situation: Two professionals with two children, a mortgage and no idea where the money goes.
The move: Three months of statements into the budget tracker, groceries tracked separately for one month, subscriptions listed.
What it changes: They can see the gap between what they thought they spent and what they spent. The first month's saving funds the starter emergency fund.

One high income, one part-time

The situation: One spouse earns CAD 180,000 and the other CAD 30,000. All savings are in the higher earner's name.
The move: Spousal RRSP contributions, child care claimed on the lower income, donations pooled.
What it changes: The deduction is taken at the higher rate, about 45.0 percent on the next dollar, and retirement income will be split more evenly later.

Canadians working abroad

The situation: A family moved overseas for a job and kept a home, bank accounts and children's school places in Ontario.
The move: Review their residential ties before assuming they are non-residents, and file accordingly.
What it changes: No surprise assessment on world income years later. Their status is decided on the facts and documented.

Mistakes to avoid

Budgeting on gross income.
Investing while carrying credit card debt.
Putting RRSP contributions on the lower-income return.
No will because "we are too young".
Insuring the car fully and the income not at all.
Leaving the RESP grant unclaimed.
Never talking about money in front of the children.

Your checklist

Tick as you go. Your progress is saved on this device.

Tools for this job

Who does what

What The Accounting Doc does

File both returns together and choose who claims what
Plan RRSP, spousal RRSP, TFSA and RESP contributions for tax
Review residency for families working abroad
Give you a yearly list of what to do before each deadline

Who else you need

Licensed financial planner or investment adviser: What to invest in and how much risk suits you.
Licensed insurance broker: Life and disability cover.
Estates lawyer: Wills and powers of attorney.

Sources

Figures checked on 13 November 2026. Tax rules change and your facts matter: this guide is education, not advice for your situation. We do not give legal, immigration or investment advice.

The family financial plan: for households earning CAD 100,000 or more