Having a baby is an exciting time for your family. However, along with the new bundle of joy comes a hefty price tag. The USDA estimates that the average cost of raising a child until he/she hits 17-years-old is over $230,000. One way to reduce the stress of this statistic is to focus on getting your finances in order early using these six tips.
- Buy life insurance. You don’t want to put your kids in a situation where they can’t afford to live if you were to pass away. Term life insurance can be an affordable option that will ensure your child has financial protection. Get a no-obligation quote from Atlantic Federal Credit Union Insurance.
- Create a budget. This will be the most important thing you do. Between doctor’s visits, diapers, and daycare, your monthly expenses can increase considerably once you add a child into the mix. Setting up a budget before your baby arrives is the best way to start saving for all the extras. There are multiple Apps available to help create a budget and track expenses throughout the month.
- Start an emergency fund. Planning ahead for the unexpected is the best way to protect your growing family. When creating your budget, try to put money into savings every month to build your emergency fund. The rule of thumb is to be able to cover at least 6 months of household expenses. The last thing you want to worry about is finances if something unexpected happens to you or your family.
- Open a checking account that pays you back. Take advantage of checking accounts that pay you back for your purchases, such as Kasasa Cash Back. That extra money paid back from your everyday purchases can help you save for those unexpected costs that come from having a baby.
- Start saving for college. The cost of an undergraduate degree is increasing every year. By the time your child is ready to enter that point in his/her life, the expense can make or break his/her future. Building a savings account for college will help cut some of the costs your child will encounter.
- Save for your retirement. This seems like a strange tip when you’re so young, but it’s crucial that you start saving right away. Building your retirement now will ensure that you’re taking advantage of many years’ worth of compound interest. Do you have a vision for your finances for the next 5, 10, 15, or 20 years? Atlantic Financial Services can help you organize and set a strategy for your future.
Don’t let the stress of welcoming a new child overwhelm you. Setting up your finances ahead of time will help you adjust to new expenses.
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