Financial Planning for a Baby

Financial Planning for a Baby

Financial Planning for a Baby

A baby is an expensive affair, at the time of delivery and also for a long time thereafter. As a parent you might be worried about the expenses and justly so. Foresight, early planning and budgeting in the pregnancy can help immensely.

Some tips to help you have your finances a little in control after the baby includes:

  1. To have control over finances post the baby begin before the baby arrives. The earlier you start the better:
    1. Control the expenses, mainly on your credit cards. Try and cut down cards to one and also the expenses on it.
    2. If you don’t have a monthly record of your expenses begin recording them now. You will have an idea of where you can control your expenses.
    3. Check up on your maternity health benefits available at work and also the amount of maternity leave you can take (max).
  2. After the baby is born,
    1. Find out and add your child into your medical insurance and plan for a life insurance to be in place.
    2. Sure as a parent you want the best for your child but do not go overboard with the spending. Buy limited clothes – you cannot imagine the pace at which the baby will outgrow them in no time. Be it baby food or nappies, both are expensive so try and buy them in larger quantities to get a better deal. Accessories like strollers, bedding, etc. can be expensive and you might want to consider used ones to save on money.
    3. Factor in childcare expenses if you plan to get back to work and set aside money for the same.
    4. Expenses will just keep happening from now on, day-to-day to education till college. Start saving now.

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