Managing Your Finances After A Newborn

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A new birth signifies new beginnings, for the baby as well as for his family. A family awaits the arrival of their newest member for nine long months. This is a time of joy, excitement and intense emotional ups and downs. A new birth also signifies a new set of expenses to the family. You now have to take into consideration the wants and needs of another person, staring right now up until he moves out of home. While this thought may seem daunting, many parents do not think of this until much later. In their new found happiness and bliss as a family, most parents think of nothing more than the day to day expenses of a new baby. Follow these tips and you will be certain that your baby’s future financial needs are also taken care of.
Make a List of Possible Expenses
Before the birth of your baby, make a list of possible expenses that you may have to incur after the baby arrives. Start with the obvious, such as hospital bills and doctors’ fees. Add on things such as diapers, pediatrician’s fees, vaccinations, formula feeds and any other expenses that comes with a newborn baby.
Evaluate Your Income
Before the arrival of your kids, you need to evaluate your income. Compare your income to the list of possible expenses after having the baby. If you and your partner’s incomes do not seem to be enough, think of ways to fill in the gap. Speak to a wealth management specialist on how you may go about this. He may advise you to obtain a loan, work another job, invest in a profitable market or change your bank account.
Start Saving
Start your baby’s wealth management right after his birth. Once your baby has a birth certificate, go to a bank and open a savings account in his name. Allocate a portion of your salary to go into that account automatically each week or month. Most children’s savings accounts do not allow any cash withdrawals until the child is 18 years of age. Therefore, by the time your child is 18 years of age, he will have quite a substantial amount of money to do what he likes. Link here for more information about wealth management.
Little children, especially babies, are much prone to sicknesses and accidents. Therefore it is important that you set up a budget for such emergencies. Define an emergency and list down a set of general events at which you are allowed to withdraw from the emergency fund. Keep this budget in a separate bank account from your day to day expense account. If a situation does not fall under your definition of emergency, do not withdraw from the emergency fund.