For a lot of young parents, financial planning can seem like a pretty simple game, if you earn a decent pay check and save a little for retirement, you are pretty well sure that all that changes with the arrival of your first child.
The key to financial acuity as a parent is to get your financial priorities in order, here are some of the first things you will want to do to make sure you and your family are on solid footing.
Here are few tips for you:
- BUDGET, BUDGET, THEN BUDGET SOME MORE: Expenses pile up quickly in parenthood more than ever, it’s important to have budget and stick to it.
- GET HEALTH INSURANCE: You have to think about potential emergence room visits, medication and lab tests. Once that new baby enters your life, you will probably be spending a lot more on medical bills than ever before.
- PREPARE FOR THE UNEXPECTED: when you become a parent for the first time, you are probably not thinking about your mortality, but if your family depends on your income, you have to plan for the worst, that means taking out life insurance.
- PUT A WILL TOGETHER: one of the most important things you can do as a new parent is put together your will, if haven’t already, it’s not just about helping your family avoid disputes over your possessions, it’s also the document where you can designate a guardian should something happen to you and your significant other.
- OPEN A COLLEGE SAVINGS ACCOUNT: these can help families set aside funds for future college costs, fund contributed to the savings account can be invested and grow tax-free.
As a new parent you need to make some financial changes that will serve you new expected family will, making the necessary financial arrangements now will minimize stress down and allow you to spend the most time loving and caring for your new born.