Without a doubt, becoming a parent is an exciting event in your life, whether it's your first child or your fourth. It’s a phase where you are happy and nervous at the same time about how the future will unfold. You might have been preparing for this event for a long time (or not!), but when you actually experience it things sometimes seem uncontrollable and stressful.
For obvious reasons, once your baby is here you will be caught up in the daily tasks such as feeding them, changing diapers, and getting them to sleep. During this time, you also have to be thinking about how to plan for the future. Every time a new member is added to your family, your finances are going to need to change and shift. For new parents, money management and budgeting is a challenge that you need to tackle early on, otherwise you might find yourself struggling to adjust as well as you thought you would.
The best thing is to do some financial planning before baby arrives, so you can be prepared for the increases in expenses and decrease in time to manage those expenses. It helps to have a plan or a to-do list to welcome a new family member. Having a money management plan in place and financial matters sorted out before the arrival of the baby can help ease burdens and help give your new baby your undivided attention.
Devise a Budget Plan
Budgeting is the most important step when you know that there will be some change in your cash flow. If you are new to parenting, you might not be able to calculate the exact amount of costs you are going to incur on baby-related expenses. If you are not sure what to add into your budget, start by calculating costs of the necessary things. Once you have that done, you can concentrate on the upbringing of your child. You should go through this budget plan every time you are expecting in order to keep track of it. New parents should be on same page as far as financial planning goes.
Want to know more about money management for new parents? Check out this video form KIMT News 3, featuring our Member Services Representative, Pam Evans.
Know Your Employment Benefits
Employer’s benefits can save you from many financial worries that you may face during the initial stages of your parenthood. There are different kinds of employer benefits that you may be entitled to. The most common benefits are life insurance, medical insurance and child care. Once you are informed about your benefits, you can worry less about the affording health care for your new baby.
Always Have a Contingency Plan
Things may not always go as planned. Sometimes you need to spend money for an emergency, or when unforeseen circumstances call for it. In this case, you should have some emergency cash reserves. With kids the unexpected can and will happen all the time.
Prioritize the Savings
It may seem difficult to think about savings for the future when you’re busy raising kids, but you have to be far-sighted during the upbringing of your children. Saving goals make things easier for you. For example, in the early years you may save for the education of your children or save for purchasing a new house. It’s better to save early on rather than relying on loans with fluctuating interest rates.
Consult With a Financial Advisor
Consulting with your financial advisor is important. Whether you want any kind of help with your budget or the savings, your advisor will get you through it. Consulting with a financial advisor can help alleviate concerns and some of the stress you may have.
Put Your New Family on the Path to Financial Success With First Alliance Credit Union
Better planning from the start can help a great deal in meeting the requirements of parenthood. If you need help setting up a financial plan for your new family, contact a First Alliance Credit Union money navigator today. They can look over your finances and help you put together a plan that works best for you and your family.