To start a family is a huge step, and to take it, you need to make sure you’re emotionally, mentally, and financially ready. There’s a lot of financial planning that needs to happen before you start a family. From the cost of diapers to preschool to college, there are many aspects of parenthood that can be expensive. Whether you’re planning on becoming a new parent or planning to add another member to your family, here are some useful tips to keep in mind. Follow these financial planning tips and start your family off right!
Include medical expenses in financial planning
The first bit of financial planning you have to do as a future parent is for all the medical expenses. Getting pregnant, carrying the child, and having it can cost a pretty medical penny. Before you decide to have a baby, make sure that you can provide what’s necessary. You’ll need to support the medication, checkups, and procedures for both the child and mother in the future. Setting aside some money for possible medical expenses is always a good way to go.
Think about your mortgage
If you’re planning on starting a family, chances are, you’re going to have to move to a bigger house. However many kids you’re planning on having, you’ll need to find a house that can accommodate your family, and this can take a lot of planning. Before you add anyone else to your family, consider if qualifying for a mortgage is something you can do. When buying a house, find a balance between what you can afford and what your future family needs. Your house needs to support your whole family, so it’s important to figure out early on if you can afford it.
Create a family budget
Budgeting is an essential part of parental financial planning. If you want to start saving and planning, you need to know where your money is going in the first place. Look into your average monthly spending, keep all your receipts, write down where the money is going and how much.
Figure out how much money you’d need each month for family-related expenses plus a little extra. Once you’ve figured out how much you’re going to need, work on setting it aside for your family’s future. To start a family, you need to do a lot of planning, so bring out the organizers and spreadsheets and get to work!
Look up your employer entitlements
If you or your partner are employed, before having a child, it’s a good idea to look up what your employer can offer you. Businesses offer different policies and benefits when it comes to their employees. From paid and unpaid parental leave to certain entitlements for new mothers, there are plenty of things your employer can do for you.
If you’re considering starting a family, check in with your employer first. See what they can offer you and look up the terms and conditions. Check if you’re eligible for any benefits as well as if there are any drawbacks or things to worry about should you need time off work. Knowing this valuable insight beforehand helps keep you prepared and can save you time and money down the line as a new parent.
Sort out your existing debt
Before you become a parent and enter a world of financial difficulties, you need to sort out your existing debt. If you can’t avoid getting into debt, the next best thing is to learn how to manage and maintain it.
Managing your debt is essential if you want to make room for and support your future family. The best way to go about doing this is to always be on top of what you owe and how much. Try to always pay off your debts on time and in full to avoid any extra expenses and costs. Reduce what’s costing you money in the long term to be able to plan freely for your family in the future.
Research government aid
Many countries want to help and support new parents and encourage them to have children. Depending on where you live, your government can offer you certain kinds of aid. You can receive anything from financial help to parental leave from your government to help you become new parents. If you’re planning on having children, it’s a good idea to explore your options and research what aid your government can provide you. However small or insignificant, this helping hand might save you in some cases, so it’s important to be aware of it.
Planning out your finances is an essential and responsible part of becoming a parent. Making smart parental financial decisions starts with factoring in your future medical expenses. Creating a family budget early on is a great way to prepare for the future of your household. Don’t forget to think about your mortgage and sort out your existing debt before becoming a parent. Do your research, check what benefits you’d be eligible for, and you’re on your way to making smart financial decisions for your family!