So became a parent to a newly borne recently? Many congratulations to you on receiving the most precious gift in your life after getting married to your loved one. Making babies is easy these days but are you aware of those extra expenses that are going to add up on your checklist? After the baby arrives, you will expense related to nurturing and all other in and outs to give them comfort. Apart from this you also need to plan for their future as well. This is the most important step for new parents.
Here’s a quick guide that will help you to set your new family up for financial success.
1. Be ready to double your savings
After the newly born arrives in your family, your expenses also get doubles as previously your spending only on yourself. Now, you need to take care of your Lil one too, about their nurturing and comfort so that they may grow healthy and sound. You can also start an emergency savings fund which will help you meet at times of financial cash crunch.
2. Be aware of the benefits that you get at work
You might be aware of the maternity or paternity leaves which are offered to new parents. But are you aware of the benefits that your workplace offers? Some of the companies do offer extended unpaid leave, health insurance policy for your kid and various other benefits that you should be aware of.
3. Create a will for you little one
Now it’s a time to create a will for your child. Here you legally mention that who will take care of your kid after something happens with you and your partner. This is also a very important task that needs to be done by the new parents for the better and secured future of their child.
4. Start budgeting and fix to it
If you have never budgeted in your life, this is the time when you should start doing it. You should start planning about the regular expenses and the expenses that are incurred on the Lil one. This will help you to meet the expenses in a hassle-free manner.
5. Start a college fund
Most of the parents would like to save early nowadays seeing the rise in the cost of living and higher education. Opening a savings account at this time and putting aside some contribution each month would help you achieve your long term saving goal and meet all your child’s higher education needs.
6. Get a life insurance policy if you don’t have one
Life is unpredictable, one never knows what’s gonna happen next. So be prepared for the unexpected things coming on your way. Get a life insurance cover for your family that will save your family from any type of contingencies if happens. Becoming a new parent is the most exciting part of our life. By checking these financial items off your to-do-list you can easily take care of your new family.
Featured image source: Medibank