While becoming a parent early in life can be stressful, there’s a lot to be said for raising kids in your 20s. It’s likely that you’ll have more energy than you might as an older parent, and it’s unlikely that work will have taken you far away from your own parents, so help may be more readily at hand.
However, one of the downsides is that you probably won’t have built up much in the way of savings yet. In this article, we look at the ways in which you can handle your finances to better support your growing family.
Connect with Other Parents
Other parents are one of the best sources of cheap hand-me-downs. There are a large number of social media groups dedicated to the local exchange of baby clothes, toys, books, buggies and other resources. After all, kids grow out of things fast. The chances are that many of the items you pick up second hand from these sources will still be in great condition, and might even come free if you can pick them up.
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Make Your Own Entertainment
As your little one grows, they’re going to need a lot of stimulation and play to help them to develop and keep them occupied. Baby groups and other public activities are great to get them, and you for that matter, socialized, but they can also be pretty expensive. Take a look online to discover things you can make and do for your kid for free. To ensure they don’t miss out on socializing, why not organize regular play dates with your parent friends?
Manage Your Loan Repayments
Student loan repayments can be a real burden when you’re supporting a family. It’s important to note that you can refinance yours, as you may see a change in the interest rate and the amount you’ll have to repay.
With the right refinancing strategies, you could even pay up to 100k in student loans.
You can also apply for the interest to be deducted from your taxable income to ease the burden at tax time. You’ll be able to do this if you’ve attended a qualifying course at an eligible institution on at least a half-time basis and if your loan was disbursed within 90 days before the academic period starts or 90 days after it ends. If your modified adjusted gross income (MAGI) is $70,000 or less, you could qualify for a full deduction. Between $70,000 and $85,000 and you could achieve a partial one. You may not be eligible if it’s above.
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Make Sure You’re Getting All the Correct Benefits
Depending on your income and family situation, you may be able to apply for certain types of financial support from the government or your local area authority. Be sure to do your research, as benefits of this kind can really help to lessen your burden.
Hunt for Bargains
Keep your eyes open for sales, store clearances, bulk buying opportunities (especially when it comes to diapers) and other chances to save. If you have the space, stock up on reduced priced non-perishables where you can. The savings you make here will have a great impact on what you can afford further down the line.
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