Creating a secured
financial future for the newborn is one of the most important things young parents
should do, but very often many of them do not know what to do and where to
begin.
When a
baby is born, parents generally receive gifts such as a baby blanket, hooded
towels and words of wisdom about sleeping schedules, etc. But nobody mentions
about the long-term financial implications of having a baby in the family or
how to budget for the growing family.
Here
are four financial tips for young parents.
Look at the monthly budget again
Everyone knows that after the arrival of a baby in the family they need to spend more, but most people do not realize that the increase will be significant. Apart from the significant expense on diapers, infant food, and medicines, regular visits to the pediatrician, expenses pile up quickly in parenthood.
Everyone knows that after the arrival of a baby in the family they need to spend more, but most people do not realize that the increase will be significant. Apart from the significant expense on diapers, infant food, and medicines, regular visits to the pediatrician, expenses pile up quickly in parenthood.
Generally, if it is your first
child, your cash outflow on one-time purchases
such as swings, cribs, car seats, toys, etc., will be big. So, revise your monthly budget accordingly. Similarly, do not underestimate the day-care or nanny expenses if both parents are working full-time.
such as swings, cribs, car seats, toys, etc., will be big. So, revise your monthly budget accordingly. Similarly, do not underestimate the day-care or nanny expenses if both parents are working full-time.
Update medical and life
insurance
Generally, it is rare to see insurance policies that cover the child from the day of birth. But, when the baby completes 90 days, she becomes eligible for health insurance.
Generally, it is rare to see insurance policies that cover the child from the day of birth. But, when the baby completes 90 days, she becomes eligible for health insurance.
Review your estate plan
It is essential especially after the first child’s birth to review and update your estate plan documents, including your will and any trusts. For instance, make sure to nominate a guardian for minor children in your will.
It is essential especially after the first child’s birth to review and update your estate plan documents, including your will and any trusts. For instance, make sure to nominate a guardian for minor children in your will.
Consider saving for higher
studies
The term ‘consider’ means that you should start saving towards higher studies of your child after your needs are taken care of.
The term ‘consider’ means that you should start saving towards higher studies of your child after your needs are taken care of.
To conclude,
the entire world knows that having a baby is expensive but follow the above tips
to set off both you and your child on the path to financial success.