Q: When a new baby comes, it has an impact on a family’s finances. Are there any money management tips for new parents?
A: For new parents, budgeting and money management become even more important, because there are increased expenses, along with planning for the child’s future. The best advice is to begin planning and saving money before the baby arrives.
Q: What are some of the costs new parents should be thinking of as they start planning?
A: There are the obvious costs like diapers and clothes. But there is also the added cost to your health insurance. You should also start thinking about how you will save for their college education. Another thing to consider is your home and vehicle. Can they accommodate a baby and all the things that come with them like car seats, strollers? If not, can you afford to upgrade to something larger?
Q: Wow that is a lot to think about, what’s the best place to start?
A: It may seem difficult to think about savings for all of these things, but you have to be far-sighted when you have kids. Setting saving goals will make things easier for you. Sit down with your partner and figure out what your priorities are together, then make realistic goals and use direct deposit to start putting aside money every paycheck. Then by the time baby arrives your will have 9 months of savings already built up, it will be one less thing to worry about once your new baby is here.
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