From the moment you discover you’re expecting a little bundle of joy, talk turns to their name, who they’ll look like, and what kind of birth you want to have. It’s an exciting time and while we try to prepare ourselves physically and mentally for the imminent arrival of a baby, very few of us consider how to prepare ourselves financially.
Taking steps now to ensure you and your family are financially secure when your newborn arrives is essential. Here I’ve gathered some helpful ways you can be better financially prepared for your newborn. Read on to find out more.
Start thinking about their future
Your baby may not have arrived just yet, but it’s never too early to start thinking about their future. By saving a little each month with a Junior ISA, you’ll have created a healthy nest-egg for them by the time they turn 18. They can then utilise this from the moment they hit adulthood. For more information on ISA allowances for Junior ISAs, click the link. We all want our children to have the very best start in life, but these contributions can ensure that their journey into adulthood is as smooth and as financially stable as possible. This gives you both total peace of mind.
Don’t forget about your own future
When you become a parent, it’s only natural that their needs and wants come first. But, in your haste to ensure they have everything they need, don’t forget about your own future. Planning for your retirement is something all adults should do as soon as they enter the workplace. Making regular contributions to a personal or workplace pension for 30+ years means you’ll have a comfortable and stress-free retirement, so even if the unexpected happens you won’t be a financial burden to your children, particularly if you need long-term care or medical treatment. The better prepared you are for your retirement, the more time you’ll be able to spend with your growing family.
Write or adjust your will
No one wants to imagine the worst-case scenario, especially when you’re celebrating the birth of your newborn and adjusting to this new, exciting part of your life. But knowing that your child or children are taken care of should something happen to you/your partner will give you total peace of mind. If you should suddenly pass away, having appointed a guardian will ensure your children are taken care of by those who love them most, without having to go through any sort of court process. Reach out to a solicitor for more information on estate planning.
And finally, work out a post-birth budget
While it’s easy to add up the immediate cost of your newborn in terms of prams, car seats, cribs and even their first clothes, it’s important that parents take additional costs into consideration and how they’re likely to affect their budget in the long-term. Diapers, formula milk (if applicable), childcare costs, baby food, even insurance and toys all come at a monthly cost that could significantly alter your income and your current spending habits. Sit down and work out your post-birth budget to ensure you’re as well-prepared as possible.