Have you got a new baby on the way? It’s an exciting time, but it can also fill you with fear, especially if you’re worried about making ends meet. To ensure that you cover the most important things, here are five of the best money tips for new parents.
- Find Creative Ways to Save
You might not realize it but there are many ways in which you can save some money while still covering costs for items your baby needs. When it comes to clothing and items for the nursery, don’t rush out to buy everything brand new. Post on social media that you’re looking for items and watch as your friends, family, and acquaintances rush in to help you out! Another idea is to host a swap party with friends where you can exchange items with each other. Finally, go online to score great parenting deals, which can sometimes be achieved just by signing up to a registry on sites such as Amazon or Sears. There are lots of ways to save money all around you!
- Set Up an Emergency Account
You never know when an emergency situation will crop up and with a baby in the picture, it becomes even more crucial to ensure that you have some money set aside for any problems that strike. How much should you have in this account to gain cover from it? Aim for three to six months of your household expenses as a minimum amount. Having this money ready for use on rainy days gives you a cushion during a difficult time without you having to pull money from elsewhere, such as your child’s nest egg.
- Take Charge of Employee Benefits
You and your partner might qualify for employee benefits that will come in handy now that you’re a new parent. An example is a dependent care account. What this means is that you use pre-tax dollars to pay for your child’s expenses, placing them into an account so that you can cover costs related to looking after your children. Examples of expenses that can be paid for with a dependent care account include day-care, preschool, and babysitting costs. It might feel scary to have some of your paycheck kept aside, but it can really help you down the line.
- Start a Baby Savings Account
It is vital to start stashing away some money for your children’s future. You can also get them into the habit of saving money from when they are about two or three years old by teaching them the importance of saving approximately 10 percent of their monetary gifts or allowances which will be directed into this special savings account. It’s amazing how quickly that savings account will grow and it will definitely come in handy for their future, while also ensuring they continue to prioritize saving in their lives.
- Create a Will
Yes, it does feel like a macabre topic to think about when you’re filled with joy at the new life in your home, but having a will is a vital part of parenthood and the sooner you get it done, the better. Up to 60 percent of adults in America don’t have wills! That’s a really scary stat because it puts your children at risk of a lower quality of life should something happen to you. Get your will in order and make sure you choose a guardian who will be responsible for and loving towards your kids to ensure that they have happy lives should the worst happen. Once you’ve got your affairs in order, you’ll feel empowered about the future so you can spend time on other things, such as enjoying your gorgeous bundle of joy.