He’s $30,000 in debt and has a newborn at home. With living costs soaring, how can he get his finances in order?

Shawn, 30, has entered a new chapter of his life: fatherhood.

Making $50,000 a year as a carpenter, he lives with his partner in Toronto, splitting $1,600 in rent. He's figuring out how to pay off a large amount of debt while expecting to spend more on child care.

I want to pay off $30,000 in debt after a bad investment," he said. It's not ideal right now, especially with a child."

While he's not a huge spender, he does also believe in buying organic groceries, which is a little bit more expensive. On a typical day, he'll bring food to work and cook at home for almost every meal ,with the exception of some weekends when he and his girlfriend will have a date night.

With a baby around, it'll change a lot," he added. I have always believed in organics and healthy choices so I am willing to spend more to cook at home. With the child, our food costs and everything else has gone up $600 a month."

His girlfriend, who is now on maternity leave, makes almost double his income. Still, he doesn't want to rely on her to figure out his finances.

I don't want my partner to pay for any of it so it's just loading up," he said. Also my work is inconsistent and it's a little challenging to get my goals together."

While they're happy in their rental situation, the looming $30,000 in debt has really eaten at Shawn. He said that he feels embarrassed that he's become a father in this situation.

How can he combat this? We asked him to share a week of spending to get a better idea of his finances.

The expert: Jason Heath, managing director at Objective Financial Partners Inc. on Shawn's situation

Congratulations to Shawn and his partner on the birth of their baby. It is an exciting time, but can be difficult financially. They are a one-income family right now, but even after she returns to work, their cash flow will be squeezed by daycare costs and other expenses.

We can start with the good news.

Ontario recently signed a deal with the federal government to introduce $10-per-day child care by September 2025. The cost reductions will be phased in over time. The goal by the end of 2022 is to have child-care fees reduced by 50 per cent on average for children under six. Infant daycare fees in Toronto are upwards of $100 per day, so Shawn and his partner will definitely benefit.

The bad news is that kids can be expensive beyond diapers and daycare. There are children's activities, clothes, and saving for college or university. In Shawn's case, their family may someday outgrow their one-bedroom apartment. So, they could even see their housing costs rise.

Shawn mentions he is doing a lot of work in cottage country. That prompts the question whether being closer to work could be beneficial for him and his partner, depending on where she works and what flexibility she may have when she returns. It is definitely something to consider.

Shawn's debt is going to present some challenges.

It is $30,000 and he describes it as loading up." I suspect that means it is increasing rather than decreasing. He keeps his spending fairly modest with low-cost hobbies like hiking and by eating most meals at home and packing his lunch during the week. You can really only pay down debt or save by earning more than you spend.

Some combination of higher income or lower expenses needs to happen. If Shawn's expenses are set to rise and his credit-card debt continues to increase, he may need to consider talking to a licensed insolvency trustee about options including a consumer proposal. This could be a way to work out a reduced repayment plan so he can start fresh and he and his partner can focus on long-term financial goals for their family.

Results: He spent less. Spending in week 1: $1,330 Spending in week 2: $472.5

How he thinks he did: I think it was typical of how much I usually spend," Shawn said, adding that his first week shared was a time when rent and car insurance were included.

Everything is getting more expensive and I just hope we can get back to a better place."

Take-aways: The most eye-opening thing from this exercise? For Shawn, it's Heath's advice about moving closer to his work and out of the city.

We had a discussion since (my partner is) doing mostly remote work and is currently on mat leave," he said. We love the city, but it's impossible to keep up, especially with a child."

Shawn is also hopeful for the $10-a-day child care, but hopes it comes sooner.

It's absolutely ridiculous here," he said. With that in mind he hopes that they both can eventually go back to work while their child goes to daycare.

When it comes to debt, Shawn has always been scared to tackle it, but at least now he knows the steps.

As I said before, it's embarrassing. But I have to just figure it out," Shawn said, adding that he'll look into an insolvency trustee soon.

I'm going to remain hopeful and just be honest with my finances going forward."

Are you a millennial living in Toronto or the GTA who needs help with saving your money? Be a part of #MillennialMoney and email evyk2002@gmail.com

Digital design by McKenna Deighton.

Evelyn Kwong is a journalist based in Toronto and a former Toronto Star team editor. Follow her on Twitter: @evystadium