Deciding to have your first child is an exciting time in your life, however it can also raise a few concerns, particularly when it comes to finances. Raising a child is an experience which will enrich your life, and being in the right financial position will allow you to enjoy your new family even more. Here are a few key points to remember when doing your financial planning before your first child arrives.
Assess Your Financial Position
One of the hardest questions you will have to ask yourself is establishing if you are financially ready to support a child. If you have any outstanding debt, or have trouble meeting loan repayments and bills, you may have to postpone your plans for children until your financial position is stronger. It can be a good idea to seek the advice of a qualified specialist such as Fox Symes debt solutions to work on improving your finances. They can offer budgeting assistance, as well as debt consolidation advice, allowing you to get rid of your outstanding loans and credit cards as fast as possible.
Work on a Budget
When you have consolidated your debt and have worked on strengthening your position, you can start working on a budget. Think about your current income and expenses, and then study how this might change once you have a child. You may need to consider changes to your lifestyle to allow you a greater capacity for savings.
It is a well-known fact that education can be one of the largest expenses you will face when you are raising your child. The best plan of attack is to start saving as early as possible. Whether you choose to save into your own account, invest in an Educational Savings Plan or explore the possibility of increased repayments in view of re-drawing on your mortgage, your decision will depend on your individual position and preferences.
The cost of childcare can seem exorbitant, and many parents are trying to find ways to balance this expense with their own care solutions. Having the children cared for by family members, even just once a week, can make a huge difference to the expense of childcare over a year. You may be able to consider one parent staying home to provide care while the child is young, as even with the loss of wage, it can be both an emotional and financial benefit for the family. Finding jobs that allow you to work from home or coordinate your own business are becoming increasingly popular with stay at home parents. The savings on the cost of childcare can mean that your income doesn’t have to be as high. Being adequately prepared for your child’s arrival will ensure that they get the best possible start in life. You can focus on the enriching experience of raising your child without constantly worrying about the next month’s bills and expenses. Having a strong financial plan is the key to looking after your family, both now and in the future. Written by Emma Jane