Financial Struggles for New Parents
Starting a life with that special someone is supposed to be fun, adventurous and memorable, yet challenging and intriguing at the same time. You learn so much about yourself and your partner; how you operate together, how you make decisions together and how you overcome challenges together. While it’s a different enlightening experience for every couple, the one commonality between relationships is how adding a third person can quickly cause change, for the good and the bad.
Having a baby and starting a family is one of the many, beautiful opportunities life offers. While not everyone chooses to have children, the people who do need to understand the responsibilities, especially financial responsibilities, that accompany babies. You could have the best relationship, but once a third individual is brought in, stress can arise and the situation can flip.
In the simplest terms, a baby is a full-time job. While bringing a new person into the world is a bundle of joy and emotions, there are financial decisions that need to be addressed prior to having children. The more decisions made ahead of time will lead to less financial stress and struggles in the future. Start by answering these questions.
How stable are your finances?
Ask yourself how adequate your insurance policies are? This includes medical coverage, health insurance and even life insurance. Not all insurance policies cover procedures associated with or needed during pregnancy. If your plan doesn’t cover what you need, you’ll want to plan for the high costs associated with these medical needs. The last thing you want is the bundle of joy you bring into the world to come with unexpected price tags(1). Do you have disability insurance and life insurance? In the worst case something happens to you and/or your partner, do you have a plan ready for financial support.
Let’s face it, babies bring a sense of joy, innocence and sweetness into this complex world. On the other hand, babies bring high expenses and sometimes financial burdens. Do you know how much a child costs? When preparing to have a baby, it’s crucial you plan for the following expenses so you don’t set yourself back:
- Cost of baby food, clothing, medical care, education and childcare
- Maternity and paternity benefits from work
- Adequate savings and investments prepared if need be
As you examine the different expenses, make sure you have control over your other financial responsibilities too. This includes paying down any debt, if possible, prior to the baby’s birth and possibly meeting with a financial planner or institution to discuss financial standings and effects.
While having a baby sparks so many positive emotions, those emotions can go awry when financial struggles are added. Don’t let finances take away from this happy new life. Be prepared and plan ahead. Once your baby is brought into the world, the financial obligations and challenges will quickly shift. It’s best to be ahead of the shift than stuck two moves behind.
Ready start planning for a family?
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