Financial Planning Tips for New Parents
Raising a child is expensive and can bring a real strain on your finances if you are not prepared. However, you can start your financial planning now to lessen this strain in the future. Below, we are taking you through our top financial planning tips for new parents that you need to follow.
Save for An Emergency
Before you start to save for any type of future financial challenges, the first thing that you need to do is save for an emergency. Accidents are just a part of life, and there will always be unexpected costs that arise that we may not have previously budgeted for. One of the best things that you can do for you and your child is to make sure that you have an emergency fund in place as this will give you the peace of mind that you need to pay your emergency bill without having to worry about it too much.
Save for College
After you have your emergency fund together, you will then need to start thinking about saving for college. We all know that college is expensive, costing hundreds of thousands of dollars in most cases. While this may seem entirely out of reach, as long as you start to save now, you will be able to offset much of this cost. It is never too early to start saving for college, and you should open a bank account to get this savings process started. The BB&T bank accounts are a great choice and will enable you to separate your own finances with your child’s college savings.
Update Your Will
If you have a growing family, one thing that you cannot forget to do is update your will. You need to have an updated will in place that will outline how your finances and family are to be taken care of should something happen. Although we don’t like to think about this sort of thing happening, you will want to make sure that you are prepared. This won’t cost you much to do and will give you the peace of mind that you need.
Save for Childcare Costs
One of the most significant costs you will find with having children is the childcare that comes along with them once you return back to work. You will need to know exactly how much you are going to roughly be spending on childcare each week so that you can plan this in advance and maybe even look into adjusting your career path to make it more flexible and lessen your need to get full-time care.
Get Life Insurance
Finally, when you have children, you are no longer just merely thinking about yourself. You need to make sure that they will be financially okay should something happen to you. Life insurance is the best option here, and if you are young and in good health, then it won’t cost you much at all. Get this sorted before the demands of a new baby take over your life!
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