Congratulations, you've become a parent!

Welcome to sleepless nights, spit-up and diaper changes.

Parenthood can be one of the most rewarding experiences in the world and bringing a baby home is one of those milestones that you will cherish forever.

Although it may be the furthest thing on your mind at this time, now is the perfect time to analyze your finances and, if necessary, to seek financial advice. Many new parents put their family's long-term financial wellbeing at risk by making quick decisions or avoiding issues altogether.

First things first, do you have a will?

No matter your financial situation, every parent needs a will to designate a guardian for his or her child just in case both parents die prematurely.

Without a will, a court will decide who will take responsibility for raising your child, and you won't have a say.

You'll also want to designate who will handle your finances after your death. You may wish for all your assets to pass to your child, but someone will need to handle the process.

This person doesn't have to be the same person you choose as guardian.

For example, your brother may be the perfect person to look after the kids, but not equipped to handle the money - so select the best person for each job.

Choosing a guardian requires some careful thought. Do they share the same values? Do they have the emotional, financial and physical means to raise your children? Remember to talk to them about it and make sure they agree with your decision and understand what their role would be. Make sure responsibilities are well defined and everyone is aware of their expected responsibilities.

Also, make sure you designate an alternate, in case the first person you named is unable to fulfill the role when the time comes. If your children are old enough to understand, discuss your will with your kids and explain the reasons behind your decisions.

Use professional help - the cost to have a will prepared by a lawyer can be less than $500 for typical family; this is a small investment considering what is at stake. This is not an area that you want to make a mistake or suffer an oversight by doing it yourself.

There's much more to providing for your new family than changing diapers and washing sleepers. You need to make sure that they are provided for should the unexpected happen.

This means reviewing your life and disability insurance coverage. Work with an advisor to determine the appropriate amount of insurance you need.

A rule of thumb is that, at minimum, most people need an amount equal to five times their annual income, plus any outstanding debt plus enough to cover the children's university costs. A stay at home spouse should be insured for at least enough to cover full-time child care. If you are relatively healthy, term insurance can be surprisingly inexpensive relative to the security it can provide.

After paying off any debt, you will need enough that can be invested to provide an income stream to replace the lost earnings of the deceased.

Don't overlook the cost of providing for additional childcare, retirement planning and saving for your child's education. An untimely death can be an emotional nightmare, but it does not have to be a financial one.

Consider adding a Child Rider to your insurance policy. A child rider is a small amount of insurance (normally $10,000-15,000) on the child's life that is added to the life insurance of the parent. This coverage is very inexpensive, typically under 5 dollars per month. The most significant feature of this policy is that most insurers let the child convert the coverage to their own individual policy up until they turn 25 without evidence of insurability.

So, if for some reason one of your children becomes uninsurable in the future, they could still be eligible for some insurance. The amounts vary from company to company, but up to $250,000 would be typical.

Although life insurance is important, you're far more likely to become disabled and unable to earn an income than you are to die. New parents should make sure they also have enough disability insurance to pay the bills and maintain their standard of living in if they are unable to work.

If you have coverage through your employer, double check the amount you would be entitled to receive and ensure it is adequate.

You can always top it up privately in the event the coverage is lacking.

If your baby is born today, the cost of a four year university degree could be in excessive of $100,000 by the time little Johnny turns 18.

A registered Education Savings Plan (RESP) is the best way to save for a child's education.

The government of Canada will help you save by matching 20 per cent of the first $2,500 of contributions you make to your child's fund each year (max grant of $7,200 lifetime).

There are also additional grants available for low income earners. Why not encourage grandparents or relatives to make a contribution to the education fund on birthdays and holidays? Every bit helps.

Deciding where to allocate limited resources is all about finding balance.

Forgoing saving for retirement to save for your child's education is just as foolish as ignoring education costs all together. Focusing on one goal while disregarding others can be dangerous. Start with life and disability insurance to protect against catastrophic losses, and then allocate what you can to retirement and education.

Oh, and take lots of pictures...they grow up fast.

The information in this article is not intended to constitute legal, financial planning or investment advice, and it may not be relied upon for such.

Please seek specific professional advice with respect to your particular circumstances, as each client's financial situation is unique and solutions may vary.

The strategies discussed herein are general.

Mutual funds are not guaranteed and their values fluctuate on a daily basis. Investments may decline in value and investors may or may not receive back the original amount invested.