Congratulations on becoming new parents! What are the most important decisions to take after starting your parenthood? What are the important monetary mistakes that all modern new parents make? The team at Credit Health Care has listed the important points that you should consider.
Now, we are here to discuss in details about the monetary tips for parents to follow. The things which will talked about in this poos are as follows, They are always reducing your debts, making budget for kid(s), prioritizing your spending, must keep emergency fund, do preparing a will, having insurance for your kid(s), understanding Child Tax Credit, buying gender neutral items, getting newborn clothes wisely and also saving for children education. Do note that, According to the survey made by United States Department of Agriculture (USDA), the new parents spend an average of $12,000 on their child in the first year only. Moreover, do note that, taking care of baby(ies) can get really expensive with the rising costs of living and essential items. The things that you need to buy right away are kid(s)’ furniture, gear, clothes, toys and mare more items.
What are the easy money-saving tips for the new parents? In recent times, I have been blessed with a kid and thinking about the financial issues of being a new parent, so can you suggest me with the ideas hat I can implement right now? For the readers to want to know about the important ways to manage finances as parents must read the full blog.
Always Reduce your Debts
Do remember that, you cannot make any kind of planning, where you have huge amount of debts and your credit score is very poor. Proper planning in advance for your children is essential for the parents to reduce the burden of debts.
You can definitely tale the helps of financial experts to help you guide through this phase and also help you to make the right arrangements before the birth of your child(s). In an earlier post, we have talked about the tips to decrease your debt, so do read it and come back.
Make Budget for Kid(s)
One of the biggest mistake the new parents make is not making a realistic budget plan. Also plan a realistic budget that reflects your new lifestyle. If you find you cannot stick to the budget on the first or second try, do not give up.
One of the simple solution that you must take is to simply adjust your budget until you come up with one that works for your family. Moreover, you need to always think ahead and the make the budgets in an according manner.
You May Also Like: Frugal budgeting tips to save more Money
Prioritize your Spendings
Another mistake from new parents is not deciding on the things that they should spend after having baby(ies) and end up overspending on useless items. However, the need of the hour is to prioritize the items in which you will put spend the money.
You should never forget to track your monthly expenses which will further help you to draft a saving and spending list. Furthermore, you should note that this practice can ease some of the pressure off your day-to-day spending activities.
Must keep Emergency Fund
Build an emergency fund. Do aim for a small, achievable goal as low as five hundred dollars then set the bar higher. Always try to make it an automatic payroll deduction and increase it when your paycheck goes up.
Moreover, the child-care costs exceed rent for many American families, are on the rise. However, some couples decide to forgo the hefty cost of child care by having one parent stay home, which means the entire family must make do with less money at a time.
Do Prepare a Will
The next in line, we are going to discuss in detail about your debt record. It is vital for all the new married couples who are starting their new family, that being in any kind of debt is the worst financial mistake that anyone can make.
However, you also need to understand that, if you are suffering from high debt or credit cards related debt issues like many fellow Americans, you can take professional help and try your best to bring back your financial condition back on track.
Have Insurance for your Kid(s)
For the purpose of insurance, you must notify your employer within thirty days of the birth to ensure that the child is eligible for any dependent benefits. Also, buy appropriate health care coverage to protect your family.
In addition to that, do take life insurance for your children. You can also review your employer’s life insurance plan and determine if it is adequate for your needs. Otherwise, consider getting additional life insurance policies.
Understand Child Tax Credit
It is important to understand Child Tax Credit. For the records, the Child Tax Credit is given to taxpayers for each qualifying dependent child who is under the age of seventeen at the end of the tax year.
Do remember that, the current Child Tax Credit is nonrefundable and it can only reduce the taxpayer’s liability to zero. However, do note that, some taxpayers can supplement the credit with the additional Child Tax Credit, which is refundable.
Buy Gender Neutral Items
One of the easy tip to save money for new parents is to buy gender neutral clothes. The biggest advantage is that, you can use them later for your future children. Moreover, you can invest that money in costly items such as strollers, car seats and high chairs.
Try to find many adorable clothes that come in different colors such as yellow, green and black. In addition to that, do note that the online flash sales can help new parents score deals on baby(ies) shoes and clothes.
Get Newborn Clothes Wisely
It is a true fact that the kid(s) tend to grow much more faster than adults. However, sensible parents who also want to save some money on clothes that buy the next size up so your children can fit into the clothing without growing out of it.
Moreover, you also have the chance to modify the clothes as per you needs. One unique example is that, you can turn the shirts and tunics and pants turn into capri pants as your children gets bigger and taller with age.
You May Also Like: Credit How to Save Money for Marriage
Save for Children Education
You should note that, one of the most challenging and important financial task for the parents is to investing for a child(s)’ future educational expenses ans you need to do proper planning for the very purpose.
In addition to that, do understand that the cost of college education is increasing and you can also take the help of employer-sponsored savings program. This money can be easily utilized at the time when your child(s)’ education bills come due.
Things to Remember:
So now, you have got a better idea to mange your money when your are having a new born kid(s). There are also chances the parents may disagree on the financial activities but they should have a common ground. The millenials are already burdened with many financial burden and having a kid(s) do adds up to their owes in a great extent. They should also need to change their mindset on money and think about the different ways to manage financial security. The most important decision of your life such as having baby(ies), buying a new house, getting a new car can only be accomplished after you have done proper planning of the needs of the family in the long-run. There are chances that the new parents as they lack experience tend to make many mistakes but you can learn fro the situation and move ahead. For further help, you can also take advice from your own parents and grandparents or someone who have the knowledge of raising children.
🐷 Money saving 🐖 ideas that new parents must followhttps://t.co/JGjlMGB1Yx#moneysaving #finance #financetips #newparent #newparents #creditscore #financenews #financehacks #Moneysavinghacks #moneysavingidea #money #saving #parents #spending #emergencyfunds #debts #budgeting pic.twitter.com/i8yX5oZOua
— CreditHealth Care (@Credithealth24) August 16, 2018