Money Matters Blog

Entering parenthood can be one of the most exciting – and scary – times in life. The financial aspect of raising children is just one small piece to the parenting puzzle, but it’s an important piece. We’re here to help you make smart money choices you might not have thought to make. 

1. Re-think Your Budget 

Budgeting for two is completely different than budgeting for a family of three. The list of supplies needed for a baby is long and continues to grow as the baby gets older. Spend time sitting down with your partner to map out a new and improved budget for when the baby arrives. Don’t be surprised if the diapers and childcare expenses cut into your dining out or entertainment fund for awhile!

2. Get Rid of Debt 

It’s easier said than done, but if you’re in debt, getting rid of it before your baby arrives will be extremely beneficial. Not only will the debt still be lingering until you pay it off, but on top of that, you now have a baby’s expenses to pay for. Don’t let the baby purchases add to the pile of debt you’re in. Consider buying secondhand baby gear instead of brand new and sell what your baby grows out of to buy the next size up. Get a jump start on reducing your overall debt by contacting a Loan Officer to inquire about debt consolidation.

3. Start a College Fund 

Although it may sound like you’re getting ahead of yourself by saving for your newborn’s college tuition already, your future self will be thankful. 18 years goes by faster than you think and the cost of college continues to grow as time goes on. The sooner you start saving, even if it’s a small amount, the less stressful paying for tuition will be down the road.  Check out our Galaxies Unlimited Kids’ Club for some unique and fun savings options.

4. Don’t Forget About Retirement Planning 

Just because a new member is entering the family doesn’t mean you should put your future on the back burner. Remember to make your retirement fund a priority, too. Not only will this be of benefit to you, but it will take the financial stress off of the entire family’s shoulders in the future. Grow your money with compound interest by starting sooner rather than later! 

5. Increase Your Emergency Fund 

Just as your budget changes when you have a child, so should your emergency fund. With another person in the house comes more possibilities for an emergency to happen, so you’ll want to be prepared. Increase the emergency fund you currently have to enjoy greater peace of mind when disaster strikes. 

6. Evaluate Your Life and Disability Insurance Needs

With a larger family comes larger responsibilities. Nobody likes to think about what might happen if they should become disabled or pass away, but there is no doubt you would want your family taken care of financially. Consider what it would take for your partner and new child to adjust to life without your income, and adjust your insurance policies accordingly.

Exciting times are ahead and with a new baby comes great joy. Becoming a parent can be scary, but with some planning, you’ll feel well prepared and excited. We hope this financial advice will benefit you and your growing family in the years ahead.