While there is nothing that can prepare parents for the love they will feel for their newborn, there are some practical, tangible financial tips that can help ensure that a child's future is financially sound before they even exit the womb.
Birth of a child
Educating yourself on your own financial goals and bills will give you a great point of departure for determining how much money you have available to spend on your child. Making a simple list of necessities such as diapers, wipes, toys and clothes will give you an idea of your child's monthly expenses and how they will change forever. Beware, this may cause some alarm.
Talk to friends and family members to ease your anxiety about your impending added expenses. People have been raising children for years and many have been doing it with very little money and planning. However, a little anxiety is only natural when it comes to raising a family. While there are new calculations that come out each year about the hundreds of thousands of dollars it costs to raise and educate a child, don't fall for the hype. Being a parent is priceless.
All the hype and anxiety about parenthood should help you implement a practical plan to save money and steer clear of pricey impulse buys that will burn through your budget in no time. While a designer bassinet sounds wonderful, your infant will soon grow out of it and will be needing an even more expensive racecar toddler bed. By talking with your partner about what you will splurge on and what you will buy second-hand, your budget for your little one can become more practical and concrete than just an ambiguous, well-meaning intention to save.
By talking with other parents about money-saving tips, you will learn about the best second-hand stores in addition to brands and buys that are worth the expense. The library is a wonderful place to rent baby DVDs and books to discover which ones you would like to add to your baby's permanent collection. Try online parenting Websites that are full of budgeting ideas and informative product reviews.
After you have made a budget and had a discussion about how you might allocate your funds and budget for expenses, open a savings account and begin an automatic deposit to pay your child each month with a set dollar amount. Shop around for a competitive interest rate and be sure the amount is one that you can afford long-term. Once your little one arrives, all you need is his or her social security number to transfer the account. Let friends and family know that the account is in place after the birth and they may feel more generous knowing that their check is going directly to a high-yield savings account for Junior.
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