Everything changes once you have a baby, including your finances. In fact, how you spend your money is just as important as how much you save. So, as time your child grows, it’s important to have enough money put away to cover everything that might come up. Even if you just found out you’re expecting, it’s never too early to start preparing gif their future. In this article, we’ll talk about some of the costs you should be saving for – before and after birth.
Before Baby Arrives
Having a baby is expensive. Even if you have excellent health insurance coverage, every aspect of the delivery might not be covered by your insurance. In some situations, you might not have met your deductible and will still have to pay out of pocket. In other situations, additional procedures might not be covered under your policy. In any case, it’s important to start saving well in advance. If you’ve been planning on getting pregnant, then you might have already started to put more money away each month. If your pregnancy comes as a surprise, then it’s time to kick your money saving skills into action. Cut out unnecessary costs out of your budget, which may include eating out, getting your nails and hair done, and even shopping at expensive stores.
Toddler Years
Once your child is a toddler, you might want to think about starting a college fund. While some parents are able to do so from day one, others need a little more time to get their finances in order. Strive to save as much as you can each month without cutting things too close. The focus should be on building a savings account that your child can access when they go to college.
Tween Time
Once your son or daughter hits tweenhood, you should be thinking about expenses that go along with this time period. Typically, children in this age group might need braces, so if you don’t have dental insurance, you should start saving for this.
Teen Years
You heard about the terrible twos, but sometimes the teen years can be just as turbulent. From asking for the latest tech devices to stressing over choosing which college they want to attend, being a teen can be tough. If your child is planning on going to college, they will definitely need a way to cover the costs. In some cases, they can apply for financial aid or scholarships. Another viable option is to apply for student loans. Student loans can be used to pay for tuition, housing, and help with expenses associated with school. It’s a good idea to shop around and compare different loan products to ensure you get the best rate.
Young Adulthood
As a young adult, your children are on their way to becoming independent. Now is the time to talk to them about managing money the right way, not taking on more credit than they can pay back comfortably, and also planning for their financial future. If they plan on moving out after college, talk to them about the importance of creating a budget that suits their lifestyle. They need to understand the importance of being financially responsible prior to leaving.
Speak Your Mind