Planning Financially for Children
Whether you are already expecting a little bundle of joy, or you are thinking about growing your family, one of the things that you should start mindfully planning for are your finances. You are likely already looking at ways to prepare in other ways, such as setting up a room for the baby. However, it should come as no surprise that children can be very expensive, which is why it's important to plan for all of the expected – and unexpected – costs. Here are some tips to consider.
Build an Emergency Fund
The first thing that most people look at is how much money they have set aside for an emergency. There are a lot of things that can happen both during pregnancy, as well as once the child is born. That is why it's generally a good idea to build up an emergency fund. If you already have an emergency fund in place, you may want to consider padding it a bit more just to be on the safe side.
Budgeting Money For Time Out of Work
While some employers offer a good compensation and benefits package for parents after the birth of a child, others do not offer much of anything. Take some time to figure out what policies your employer has and whether you will need some extra money saved for living expenses during this time. If they do not offer any paid time off, you'll want to set aside funds to take care of things until you or your partner can get back to work.
Consider Childcare Costs
Unless one of you plan on staying home with the child, you will probably need to pay for childcare. Sooner rather than later, take a look at facilities in your area so you can know how much you realistically need to budget for these costs. This can vary from area to area, as well as depend on the type of care and how many days you will need it per week. Taking time to examine childcare costs for your area will help you tremendously. While you may not need to have all of this money available immediately, you do need to have that money ready when the time comes to enroll in childcare.
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