Financial Planning Tips For New Parents - Preparations For A Baby
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Having a child can wreak havoc on your bank account, but planning ahead can help new parents tame the financial tumult. Here are six financial planning tips to consider when preparing for a new baby.
Having a child is exciting, and is likely to be one of the most rewarding things you’ve ever done in your life.
But temper tantrums aren’t the only chaos you can expect. Your finances might also be thrown into havoc, blindsiding you and your spouse with unexpected expenses.
So if you’re planning to get pregnant, or are already anxiously awaiting the imminent arrival of your little bundle of joy, you’ll want to plan your finances so you can better cope with the rocky financial road ahead.
Here are six financial planning tips to help prepare new parents (and their bank accounts) for a baby.
1. Create a household or baby budget
Financial planning is all about getting clarity, so the first thing new parents should do is to set up a household or baby budget.
The earlier you do this, the clearer about your financial position you will be, so don’t wait till your baby arrives to plan your budget. Between taking care of a newborn and adjusting to the demands of parenthood, you may find yourself lacking the time and energy to sit down and plan your new budget.
Of course, there’ll be a little bit of trial and error involved, especially for first time parents. But with online shopping platforms and parenthood websites all around, you should be able to arrive at an estimate that won’t be wildly far off.
This allows you to see if you have adequate finances to support the household with the addition of a new baby, and will alert you to any potential shortfall so you can take remedial steps in a timely manner.
Drawing up a budget also allows you to know whether you can afford to spend on extras, such as post-natal massages, a confinement nanny, or special supplements to aid recovery. If you can’t afford them, consider alternatives, such as asking your parents for help.
Also, don’t forget about birthdays and festivals and other milestones, which you will want to celebrate as they come.
If you start budgeting for those at the outset, you’ll be able to focus on creating great memories with your child without being distracted by financial stress.
