How to Financially Prepare for Starting a Family
Making the decision to have kids and start building a family is one of the most memorable and important decisions a person will make in their lifetime. Everyone is understandable excited and overjoyed when they finally make this decision, but most people are also nervous too. There are a lot of different preparations that need to be done before having a baby and it can be enough to overwhelm anyone.
One of the preparations that needs to be taken care of is financially planning for having a baby. Many people do not realize the financial burden of a new child until they begin to start making all of the investments they need to in order to provide for that child. Every parent wants to give their children the best life possible, but no parent wants to go into debt to do it. There are a lot of things parents can do to avoid debt. Here are some tips in how to financially prepare for starting a family.
Families can get a lot more deals on everyday expenses than couples can. Bundling certain expenses can help any new family save a lot more money and have better services. For example, families should learn more about bundling together insurance policies to make the burden of adding another member to the mix less intense.
Plan for schooling right away
School can become one of the biggest expenses for parents. There are always public schooling options, but there are many parents who want to pay for private schooling, or need extra day care time outside of school hours. Parents who want to use these options should start planning for it right away, creating a savings account that they deposit into monthly for the expense.
Open a college fund
College is another one of the big expenses that parents need to start thinking about right away. Paying for college is one of the biggest expenses of having children, and parents who want to pay for their children’s tuition will need to save for years to make that happen. Setting up a 529 college plan will help get parents on the right track towards paying for college.
Create a new budget to adjust too
A couple’s budget will change drastically when they bring their new baby home. Parents should take some time to estimate how their new budget will look before the baby arrives. This will make the transition easier for everyone and help the parents adapt financially to their new lifestyle.
Build a cushion
Having an emergency fund is important in every stage of life. However, the emergency fund of new parents needs to be bigger than that of a couple. Parents should work to create a new emergency fund that will support the whole family and be able to cover unexpected expenses like medical bills for the new baby. These preparations can help any new parent feel more secure and ready to bring their new baby home.
Tina Hamilton is a journalist, blogger and social media guru. You can usually find her online or walking along one of Southern California’s beaches with her dog, Joey. Look for her on Twitter.