“Of course, the reward of raising kids is totally worth it, whatever it costs. Nevertheless, it’s better to be prepared than to be sorry. Here are some money saving tips that will help you save for your family’s future.”
Starting a family is exciting, but studies show that the average cost of raising a child ranges from $183,000 to $282,000. More couples are factoring finances into the decision to start a family.
One out of five parents are now delaying having another child for monetary reasons. Therefore, it’s wise to have sound financial preparation if you want to have kids soon.
The Morning Ledger’s article, “5 Money Saving Tips for Couples Who Want Kids,” first highlights the importance of creating or updating your estate plan. Anyone over 18 should create a will as part of their estate plan. If you have a family with a baby on the way, this should be a top priority. If you’re not here to care for your baby, who will do it? Without a will, the court makes this decision.
Create a ‘Baby Budget’ Beforehand. Start living on your “baby budget” ahead of time, and calculate your change in income. You should begin living on a new budget before the baby arrives. If you do this, you can put the extra cash that is accumulated into savings.
Purchase Adequate Life Insurance. Getting life insurance is for the benefit of your family, and provides you with peace of mind.
Save First. To be able to do the three items listed above effectively, always divide your money as soon as you get paid so you’ll have your monthly saving goals set before you run out of money. It’s also a good way to develop your budgeting and financial management skills.
Don’t Overspend. It’s tempting to splurge, but overspending is the opposite of saving. To avoid doing this, organize your shopping by having a list of the things you need to buy. Do your homework first.
Reference: Morning Ledger (November 10, 2016) “5 Money Saving Tips for Couples Who Want Kids”