Arguably, the single biggest way you can change your life is by having a kid. While you’re expecting, you’ll receive an endless barrage of advice.. “Eat grapes, you’ll have a girl.” “Soak your feet with olive oil and honey, or else you WILL get diabetes.” “Don’t go water-skiing in your ninth month.” And while the most important thing is making sure the mother is healthy, it’s also a good idea to think about planning ahead as much as possible when it comes to finances. Here are some things to consider before having a baby.
Start Saving for College
If you put away even $50 per month for 18 years, you have over $10,000 for your child’s college fund. But anything helps! Just starting the habit right from the get-go will make it easier to put more money in when you get a lump sum, or when your financial situation improves. Whether you end up saving $15,000 or $2,000, start immediately.
Prepare a Will
This isn’t something you want to think about, obviously. But consider setting up a trust, or, at the very least, make sure you name a guardian for your child in the event that someone else needs to step in and take care of him or her. It will avoid a lot of legal headaches if something tragic happens.
Revisit Your Financial Goals
Re-evaluate your short term goals, mid-range goals, and long-term goals (car, house, college, retirement) and decide how they’ll need to be altered for a baby. Try your hardest not to skimp on the retirement fund – but don’t completely ignore immediate needs like child care and potential home renovations if it will benefit the whole family.
Shop for Life Insurance
Don’t rule it out. You might be able to save a balance and borrow against it, which could be helpful if you come across financial hardship. It’s not just you anymore, you have another mouth to feed – and perhaps more than one in the future!
Anyone out there have any other financial advice for parents-to-be? Leave it in the comments!