3 Money Tips for First-Time Parents
I can vividly recall the moment I found out. Seeing the word "pregnant" clearly written across the screen of my digital pregnancy test conjured feelings of happiness and sheer horror all at once. My husband and I didn't plan our first baby, which meant there were no budget plans in place; as a married couple in our late 20s, we really had no idea where to start, either. We really could have done with a first-time-parents financial to-do list. Thankfully for new parents reading this now, Money has kindly compiled one. Scroll down to read the site's essential money moves.
Start a baby savings fund.
You should already have a savings plan in motion, but it's time to ramp it up now that a baby is coming. First you'll need to perform a cash-flow analysis that breaks down your income so you can clearly identify the areas where you can cut costs and boost savings. Then set up an official baby savings fund for all those onetime expenses, such as a stroller, crib and car seat, including the continual costs of daycare and diapers.
Set up life insurance.
Before I had my son, life insurance never even occurred to me; besides, I never really had anything anyway. Now that I'm a mom, it's a completely different scenario. Life insurance is one way to ensure your child's financial security if anything were to happen to you or your partner. There are several options available, but according to Money, "One of the most important aspects of life insurance is to make sure that if an unexpected event befalls you, your spouse and children can maintain their economic quality of life."
Plan your retirement.
Millennials are already doing this, so it's time you did too; preferably before baby's arrival. It's common for parents to focus on their child's financial future instead of their own, but this is just as crucial. To take care of your child, you need to take care of yourself first, because that little one is going to need you—emotionally, physically, and financially—for a very long time. Leading by example and showing your kids what good money habits look like will help prepare them for the future too.
To read more essential money tips for first-time parents, visit Money.
Start your baby savings plan today and jot down your to-do list in this gorgeous journal.
What are your top saving tips for first-time parents? Do you have life insurance or a 401(k) savings plan yet? Why/why not? Let us know in the comments.