Today – Financial Planning for the Expanding Family
Planning to expand your family can be a very exciting prospect, but it is important to consider whether you can financially afford it in your current state.
Today we are going to be talking you through a few ways that you can use to help determine whether now is the best time to be introducing little ones to the family and a few handy tips on how to keep costs to a minimum once they arrive.
Assess your current financial situation
It may be a good idea to consult with a financial advisor as to whether having a child is currently in your means, this way they can help you set up a plan as to how to budget and plan ahead.
Take into account your current earning and start to brainstorm some of the outcomings you are likely to face when expanding your family such as medical costs, food, clothes and everything that comes with having a child that you may not have already thought about.
If you haven’t already taken out health insurance and are planning to have children in the foreseeable future, it is a good idea to do so.
Health insurance can help ease the strain of the costs that are sure to pile up when having a child such as ultrasounds, midwife fees and the birth itself.
If you already have health insurance, be sure to check whether you are covered and to what extent you are when it comes to bringing a little one into the world.
Discuss maternity/ paternity leave
When planning to have children it is important to discuss with your employer your rights regarding how much time you and your partner are entitled to and whether you will be getting paid for this.
Taking time off work can have a significant effect on your household income, which may make it hard to raise and support a child.
Start to save early
If you know that you are wanting children in the next few years, it may be a wise idea to start putting bits of money into a separate savings account here and there.
When it comes to expanding the family it is the little costs that will soon amount a lot, so putting aside money each month is a great way to save and if you change your mind dont end up using the money towards having a child you still have access to it.
Attempt to start on a clean slate when financial planning for the expanding family
Before bringing a child into the world, it may be worth assessing your current financial state and clearing off any debts that you may have so that you can essentially start afresh
By clearing your debts you will be able to keep track of the finances you have available to raise children within your household without having to put money aside to clear off loans.
Start a 529 account
You may have only just brought your little one into the world, but it is never too early to start planning and putting away money for their future ventures.
One way that you can put your mind at ease is to set up a 529 plan that will allow you to put away money that can be used towards college fees later in your child’s life
The sooner you set up and start adding to your 529 account the more interest you will gain on your investment, but it is also important to note that like any investment you could lose money due to the economic state at the time you are wishing to withdraw.
Create a will
Whilst we’re sure that you will do everything in your power to support your children, it is important to consider a time where you may not be around to do so.
Creating a will that will see your children being left some money when you pass is a great way to ensure that they are financially stable throughout their lives and will provide both you and them with comfort.
If you’re looking for some more helpful tips or advice on loans or how to improve your credit score? Then check out this useful link from www.crediful.com.
Bringing children into the world is a big step that people often find very daunting so we hope that we have been able to provide you with a few steps and solutions to easing your financial strain.
The tips we have discussed are just some of the few we have found useful over the years, so be sure to let us know if you have any additional ones that others may be able to introduce to their baby planning.
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Financial Planning for the Expanding Family is a feature post