Having a baby is undoubtedly the most beautiful thing, but it is a big responsibility. The baby needs time and attention at all steps and is physically and emotionally dependent on the parents. Besides, the financial stress also increases as the expenses increase by many folds with a baby. Every parent wishes to provide the best of everything to their child and thus, this has a financial implication too. It is imperative for all couples to plan their finances before they plan a child. Some of the things they need to look at are:
Before or when you get pregnant, check with your employer regarding maternity leaves. Most of the recognized companies have dedicated leaves for maternity which are paid in nature. But if you work for a small company and they do not have any such clauses, you might have to make alternate arrangements. You can start with saving your personal leaves, sick leaves etc.
If you have any debts or credit card settlements, do it before the kid arrives. Your expenses are only going to rise after the arrival of the little one. It will raise the debts furthermore since there might be some delay in clearing off the debts.
For larger plans such as buying a car of house, it is preferable to do it before the kid arrives. Even better if you can get them done before planning for a kid. This will allow you to keep your complete focus on the little one.
One of the simplest ways to improve your financial condition is by increasing your source of income. If there are any job offers or part time offers, and you feel satisfactory take the job.
Insurers have a lot of good plans when it comes to the future of your children. Assess the various options and look for a plan that offers premium waiver option along with other features and benefits. Some time invested in deciding the right plan will pay off in the future.
The first question that you need to ask is whether you will be able to work post pregnancy. If the answer is yes, you would need to look for a day care centre as close to your work place as possible. If the answer is no, you might have to ascertain if a single income is going to take care of the household. Taking a look at various work from home options might be a good option as well.
A quick assessment of your different expenses is important while planning a kid. Try to get rid of impulsive and unwanted purchases. A good approach would be to open an account and start depositing a certain amount on a monthly basis. Even if it is a small amount, it will come in handy during later stages.
This is a topic that no body wants to but must talk, especially while planning a kid. No body knows what the future has in store. Planning for such unforeseen events will ensure that the financial needs of your children and family is well taken care of.
If you have an existing health insurance plan, take a quick look at it to see if it would cover maternity expenses or not. Also, if it covers expenses such as screening checkups, vaccinations, pediatrician checkups etc.
With kids in the house, you definitely need funds for emergency. There are various emergencies that can take place with a kid in the house. It is important to create an emergency fund so that you are not caught off guard.
A lot of the times parents get carried away with brands. With kids, make it a point that you are buying clothes that are comfortable. Buying branded clothes and fancy items will only add to your expenses. However, when it comes to baby gears, ensure that they are comfortable and safe at the same time. No corner cutting on that aspect.
Make a budget for all household related items such as shopping, car expense, household expense etc. And it is important to get into a habit of not exceeding these limits. Creating a budget is a good way to find out where all your money is actually going. You can review and made adjustments to the budgets as well.