Four Important Financial Advices for New and Not So New Parents

     Yesterday, as the kids and I went to an indoor mini golf activity, I just realized that very soon my oldest will be in high school. After that, every two years to be exact, I’ll have a freshman. In just a blink of an eye, the kids will be in college!
     Where did time go? I know that it flies fast but not at this rate. Anyway, this got me thinking.  Am I ready for it? College, weddings, empty nesting?
     Whether you are expecting your first child or taking care of your fifth, I would like to share with you these four important things which most parents tend to put aside until the very end.
As most of us have heard or experienced, having a child can be a very expensive thing. Therefore, it is important for families to carefully plan out all of their expenses. When a child is involved, there are often many unexpected expenses that come into play as well. Needless to say, you need to be wise when it comes to money when you are raising a family in this very difficult financial times.  Here are some useful money saving advice for new and not so new families.
Photo courtesy of Magickal Goodies

1. Start planning for college immediately 

It is never too early to start planning for college. The cost of college tuition continues to go up every year. If you wait until your child is in high school to start saving for college, it will be far too late. However, if you do get a late start and you need some extra cash to finance your child’s college education, visit one of the many New York private banking locations to find out about the various loans they offer. There is certain to be one that suits your needs. 

 

     This is one of my priorities. When my kids were younger (babies), I would put all their monetary gifts in an educational plan I got for them. I also remembered asking their godparents not to buy them those cute yet really pricey clothes and toys. Yes, they could buy them presents but I let them know how helpful a $10 deposit to their educational fund is. Those who were still paying their college loans readily understood.  I mean, if a child is under 3 years old, she wouldn’t know the difference of a $50 Barbie doll from a $10 one. Right?
2. New expenses

 

Before you have a child, it is important that you understand the financial burden that will be coming your way when the little one finally arrives. Items such as wipes, diapers, clothing, food, formula, babysitters, day care and visits to the doctor will all need to be figured into your budget. Being able to afford these essential things for your new child may require you to give up some other things. For example, the cable TV and your gym membership may need to be cancelled.

 

        This is something I learned later on. The older a child gets, the more expensive he or she gets.  A baby wouldn’t care if his or her shirt is from an expensive boutique or from a discount bin.  As my children got bigger, I’ve noticed that they now have a say on their clothes, shoes, activities and more.  Most of the time, if they are not paying for it, their choices tend to be on the higher side.
3. Life insurance and wills

 

Now that you have a family, it is important that you do what is necessary to safeguard their future if something should happen to you. This is especially important if you are the primary breadwinner in your family. If you are relied upon for financial support, having an updated will and life insurance policy is critical. If you should pass away suddenly without either of these things in place, your family could be left destitute. 

 

      This is something most don’t like to talk about.  However, it is really crucial.  I’m the primary caregiver of my children. However, I can’t even imagine what will happen to my them in case I passed soon.  My children with food allergies for instance, can’t cook their food yet.  Who will care for them in the even both my husband and I are gone?  How will they care of these kids with special needs?

 

4. Go to a financial planner

 

New families often find it useful to go to a financial planner after their new baby is born. A financial planer can take a look at the parents finances and construct a budget for them to follow so they can prevent going broke. This is definitely worthwhile if neither parent is good at managing their money.

 

      I think this advice is not only applicable when a new baby is born.  In fact, I think we (that includes me) should go for consultations more often. With our busy daily routine and never ending life changes, a new set of eyes and ideas can definitely be beneficial.  A financial adviser can help us stay on track of our goals and even make new ones.

Do you have some common or unique financial tips to share?  I love to hear from you.  Please write them down at the common section below.

        Have a great week!- Roz

(Note: This is a sponsored post which meant that I have compensation for writing this article and posting a link.  Please see my full disclosure here. )

4 comments

  • Roz.. these are such great tips! I know we have to update our will too, it's been way too long. I can't believe how fast time flies and financial planning always seems to go to the bottom of the list. Thanks for a great article!!

  • Oh boy… I remember the "writing a will" talk a few years ago with my husband, we hated the whole process, but we put on our adult pants and got it done. this is a great post! You don't realize when you begin your family all the financial planning actually involved.

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