New parents' top money mistakes
By Vanessa Santilli • Bankrate.com

Mother-to-be Nadine Ponte is taking financial steps to prepare for her new baby.

"We plan to put away money for our future children for their education fund right from the start," says the Toronto-based Ponte.

But not all new parents take the necessary steps to ensure their new addition won't jeopardize plans for their own financial future.

Here are ten of the biggest money mistakes new parents make and tips on how to avoid doing the same:

Mistake No.1: Failing to plan
Be sure to incorporate expenses related to a child into your financial plan, says Biljana Manojlovic, a certified financial planner for the Royal Bank of Canada in Vancouver.

"A financial plan is a living, breathing document that needs to be updated every time a major life changing event occurs -- and the birth of a child is definitely one," she says.

Manojlovic says her clients tell her they feel much better knowing what they need to do to get where they want to be.

Mistake No. 2: Stopping retirement savings to overspend on the baby Try to come up with a spending plan before the baby comes, advises Manojlovic. "Not only will this help you stay on budget, you will feel more in control of your finances as your child grows."

Mistake No. 3: Having inadequate life insurance "Life insurance should be reviewed as part of a financial plan once the baby is born," says Manojlovic. The basic calculation for how much life insurance you need is simply to add all your debts, mortgage and income to support the surviving spouse and provide education for the children, she says.

Mistake No. 4: Getting kids accustomed to the name brand lifestyle
New parents can sometimes get caught up in the name brand game and can become convinced that if they don't purchase the most expensive brands, then they aren't giving the child everything they need, said Ponte.

Laurie Campbell, executive director at Credit Canada in Toronto, says dressing your child in brand names will likely result in their wanting more as they get older. "By explaining that it's nice to have brand name items as something special but not for everything, [parents] will save a ton in the pocketbook," she says.