I’m the father of two sons, aged 26 and 29, which means it’s been a long time since I gave any thought to baby expenses. Still, I was struck when I read recently about an online baby registry platform called Giftstart that allows people to send money as well as the usual baby-related equipment.
Is that a thing now – sending money to new parents? For answers, I asked Giftstart CEO and founder Scarlett Li-Goshawk to do a newsletter Q&A. Here’s an edited version of our exchange by e-mail:
Q: I see the trending gifts on Giftstart are the usual stuff – bassinets, diaper pails, strollers and such. But you’ve added a cash option as well – why?
A: Directly asking for monetary gifts isn’t usually part of the baby registry tradition. However, with the increasing costs of child-rearing, evolving regulations, and inflation, we realized that financial support has become more important than ever. By incorporating a cash fund into registries, we’re empowering parents to receive financial contributions in a personalized, customizable, and courteous manner, eliminating the awkwardness in requesting financial assistance.
Q: What’s the take-up been like on cash giving as opposed to buying baby gear?
A: The response has been excellent. Since the launch of our cash fund earlier this month, we saw that over 95 per cent of users who have created baby registries through our platform have expressed interest and willingness to incorporate it into their registry.
Q: How much cash are people giving on average? And, how are they giving – lump sum, a series of small gifts?
A: The amount and frequency vary; we are seeing contributions as small as $25, which could go toward a diaper fund created for subscription deliveries. We’ve also seen large lump sum amounts from mostly parents or other family members who contributed to funds created for a nursery room or saving up for specific uses.
Q: Overall on Giftstart, what is the average value of gifts received by people who register on the site?
A: The value of products being gifted through a Giftstart registry on average is $3,500, reflecting an increase from around $3,000 earlier this year. We’re forecasting the upward trend to persist throughout the year 2024.
Q: The Stress Test podcast I co-host with Globe personal finance editor Roma Luciw looked recently at young people who are choosing not to have children. What’s your sense of how big a factor cost is in the decisions young adults are making today about having kids?
A: Significant expenses, undoubtedly, play a huge role in anyone’s decision-making when it comes to parenthood. The continued rise of overall costs, fluctuating interest rates, and layoffs across many industries have collectively heightened the financial strain on many people. Due to uncertainties in affordability, prospective parents are understandably hesitant to bring a child into the world when they themselves are feeling financially stretched.
Q: Where does the financial strain on young parents come from – is it mortgages, daycare costs, other child-rearing expenses?
A: Pervasive inflation has rendered many essentials less affordable, while business closures and mass layoffs have further unsettled job security. In the existing interest rate environment, the once-attainable dream of home ownership has become less feasible for many. This jeopardizes the sense of safety and stability associated with home ownership, further dissuading people from considering expanding their families.
Q: Giftstart is billed as a baby registry – can you see it being used to support parents after the birth of a child?
A: Absolutely. Giftstart is designed to seamlessly adapt to the ever-evolving needs of families across all stages. We’re constantly expanding our service offerings to support Canadian parents with diverse needs, ranging from newborn care and babysitters to sleep training consultants, as well as dental care or meal deliveries.
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Rob’s personal finance reading list
Life in shrinkflation nation
Seems like there’s no end to examples of food companies shrinking their packaging, including a national favourite that I bet you buy if you have kids. Cereal will come in playing card boxes if this keeps up.
‘I have no idea what travel rewards I want’
A trio of credit cards that produce travel rewards with maximum flexibility for booking flights and more. For example, points can be converted for use with at least one airline’s frequent flyer program.
In this story, 32 per cent growth is bad news
An investment adviser notes the alarming growth in use of food banks, a sign of the economic stress caused by inflation and high interest rates. If you have some money to donate, consider a local food bank for an immediate local impact.
Forced financing
All about how vehicle dealers are rejecting cash offers for vehicles. The reason: Dealers make commissions from lenders when customers take out a loan to buy a car, SUV or truck.
Ask Rob
Q: If someone uses MAID, medical assistance in dying, does life insurance still pay?
A: Life insurers will pay out policies for people who used MAID as long as the legal conditions for medically assisted death are met, a non-profit called Canadian Virtual Hospice says.
Do you have a question for me? Send it my way. Sorry I can't answer every one personally. Questions and answers are edited for length and clarity.
Tools, Explainers, Guides and Charts
The best business bank accounts in Canada
The Money-Free Zone
I recently came across a Rufus Wainright cover of a personal favourite, Who Knows Where the Time Goes. One of the most melancholy songs ever, yet irresistible. The Fairport Convention original, sung by Sandy Denny, is gold standard. Also worth a listen is a version by Judy Collins. I will stop now.
Listen to this
In this episode of The Globe and Mail’s The Decibel podcast, I talk to host Menaka Raman-Wilms about housing, inflation and other personal finance issues affecting millennials and Gen Z.
On social media
The CBC’s Ian Hanomansing captures the tipping options presented when he paid for a taxi to the airport. The word that comes to mind is overreach.
What I’ve been working on
- People buying a home in the next few years should absolutely open an FHSA in 2023, but where to do it?
- If you ever had thoughts of buying an annuity, now is the time
- Does the latest Bank of Canada announcement mean it’s go time again for variable-rate mortgages?
More Rob Carrick and money coverage
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Even more coverage from Rob Carrick:
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- ✔️ The housing file: A house isn’t special. Get your head straight about the reality of home ownership • The good, the sad and the unaffordable: Saving for a home downpayment in Canada’s big cities • Property taxes are popping in some cities – how worried should you be about other tax hikes? • Our other real-estate problem – people have too much wealth tied up in houses • Borrowers and savers, here’s how to time the eventual rollback of interest rates
- 📈 Investing: Canada's top digital broker is TD Direct Investing, with an assist from the TD Easy Trade app • 2023 Globe and Mail ETF buyer's guide part one: Canadian equity ETFs • For the ultimate in cheap investing, check out the Freedom .08 ETF Portfolio • Yes, there is risk in Canadian bank deposits for the unwary and complacent • CDIC covers bank deposits, but who protects your investments if your broker goes bust? • Answers to your questions about the low-risk ETF paying almost 5% • Happy fifth birthday to one of the all-time best investing products for everyday people • An investing strategy that wins cleanly over the long term by outperforming in bad years like 2022
- 💰 Your money: Mortgage holders, savers and GIC investors, it’s time to change your thinking on interest rates • How much debt is each generation of Canadians carrying, and how do you compare? • For the sake of their financial futures, young people should leave Toronto and Vancouver • This practical new spin on a savings account might just peel you away from your big bank • Rental fraud grows amid rise in fake, falsified tenant applications • Are Canadians worse off financially now than in the 1980s? • From groceries to auto loans, here’s how much more it costs to live right now • When saving for retirement, should you change your asset mix over the course of your career? • Do retirement income needs always rise alongside inflation? Not necessarily • When the bank suggests you lock in your variable rate mortgage, it has an angle
