Here Are Six Steps That Can Help Manage Your Money For A New Addition In The Family!
The time has finally arrived for you and your spouse to begin a family together! It is an exciting time, and there is a lot you are both looking forward to. Maybe you have even let close family and friends in on your plans and the celebrations are rolling! However, one serious matter to consider is whether you have properly financially prepared for this new phase of life you both are entering. Here are six steps to take to make sure you’ve got all the ground covered in money matters by the time your bundle of joy arrives!
Review Your Health Insurance
Before your baby arrives is the best time to take a good look at your health insurance policy to make sure that it is the right plan for your new family. If you are covered by health insurance through your employment, contact human resources and start asking around for information about the insurance plan, or ask to be directed to the insurance provider. Make sure you find out whether you will be responsible for any out-of-pocket expenses so you don’t have nasty surprises, and find out how to add your baby to the plan for coverage. An early review gives you enough time to ask questions and to start saving up if you have to pitch in for payments.
Setting yourself up by registering in advance for your diaper supply, foods, milk powders, and baby cosmetic supplies is a must. This gives you head start on the finances and keeps you in the loop when it comes to the babies’ goods. Friends and family usually pitch in for the big purchases, so it can be good to pool monies and go shopping for big items and cut expenses at the same time. Doing this early also means you have more time to shop around instead of settling in desperation for the first cost you come across, for example!
Set Up a Baby Account
Babies need a lot of things. Ask any parent and they will not hesitate to agree on this! There’s the regular stuff like formula and diapers, then clothes and toys and bathing accessories, but then their car seats, furniture, and even child care in some instances. Saving for all of these things in advance puts you in the lead and gives you peace of mind. You will thank yourself later for having started early! Build your savings by setting up a stop order straight from your bank account into another separate account designated specifically for baby.
Create a New Budget
Preparing for a new baby means preparing for life changes, too, as your lifestyle is likely to change a lot. Big changes may take place and require a change in your budget. For example, perhaps previously both husband and wife were working, but now the wife may choose to be at home to care for the baby. This means adjusting your lifestyle and your budget in order to survive off of one income.
Start a College Fund
Don’t laugh – it isn’t too early. The sooner you start saving for your child’s education, the better because education is expensive and student loans are a killer. Time is money, and if you choose a good investment where you can earn handsome interest, you’ll benefit by making more out of your money by having a head start. Also, starting early means you can get away with putting a smaller amount in and still getting bang for your buck! Compound interest is the magic here…
Life Insurance and Your Will
With a family comes responsibility, and it’s only fair as parents to ensure that your child is well looked after, which includes being taken care of in the event of your death. Setting up a life insurance policy is important for peace of mind that should something happen to the main caregiver in the family, the family will survive off of the funds in the policy. Creating a will is just as important to preserve finances and to ensure that everything goes smoothly in the event of death. If you have existing policies or documents, it is best to review these since there will be big life changes now that you are starting a family.
There’s a lot to be excited about, and you shouldn’t have to be worrying about your finances in this beautiful time! Manage your money matters and be sure that you have everything taken care of so that you can let go of that stress and embrace this great transition!
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