I’m not a parent yet, but I have enough friends and family with babies to know that a new baby brings a lot of excitement and family togetherness. It also means rethinking your family’s finances. Now is the perfect time to start thinking about education savings, life insurance policies and the new expenses that will require budgeting. As you grow your family the credit union has some helpful tips to help prepare you and your family.
Review your household budget. A new child will not only change the day-to-day dynamic of your family, but it will also change your spending habits. Now’s the time to review your budget and to start putting money away early for diapers, formula, doctors’ appointments, daycare, etc. From what I’ve heard, it all adds up very quickly! You should also consider the amount of time you may be away from your job while you or your spouse are on maternity leave. Will you still get paid during that time? If not, then you will definitely need to put some funds back to live off of during that time frame. The credit union offers many options for saving your money. Start saving early so you can relax and enjoy this special time with your baby.
Start or check your emergency fund. If you don’t already have a “rainy day fund,” now’s the time to anticipate some emergencies. Life happens and most kids are accident prone, so we suggest having three to six months’ worth of living expenses set aside in an emergency savings account. A High Yield Online Savings account would allow you to save money quick and easy.
Start investing for your child’s future. Investing for your child’s future may be one of the most significant investments you’ll ever make. Acting now will lay a dependable financial groundwork for the long road ahead. But where do you start? The credit union offers a CUbby Kids account for kids 0-12 years old. It’s a great kids account with plenty of perks that your baby can one day enjoy. College is costly and a fantastic way to begin saving for your child’s education is to open them a Coverdell Education IRA. Start your child off on the right foot so they’ll be financially prepared in the future.
With 18 or more years until your little one leaves home, time would seem to be on your side. But, as the saying goes, blink and their all grown up. Now is the perfect time to take the steps to set your family up for financial success.
Until next time,