The pandemic that started in 2020 has proven to the world that there is no stability. If two adults can take care of themselves, the situation is different if there are kids in a family. If you are getting ready for pregnancy, are expecting a baby in your family, or have already got a child, this post will be useful. We have prepared financial recommendations for couples who have got kids, especially if one of the parents stays at home to take care of little bundles of joy.
Why is a Family with Kids Different?
Having decided to give birth to kids, a lot of people think about a doctor and hospital to choose, read books about pregnancy and the first year of children, as well as how to take care of them. However, not every family understands how different their financial situation will become. Aside from the extra expenses you will incur, there are more things to take care of. So, here are the recommendations from experienced parents.
Tip 1 – Make sure you and your spouse are on the same side
For a financial plan to work, both spouses must agree on how the money can be spent and saved. If one spouse is more money savvy, it doesn’t relieve the other spouse from knowing how to take care of bills, budgets, savings, and how much money is in their accounts. It is essential to create a secure document that lists all of your accounts, cards, and passwords.
Tip 2 – Learn to make sacrifices
Yes, it is the most difficult habit to get used to. But some say that happiness is a choice! Try turning those sacrifices into a challenge and try to find better ways to enjoy life while spending less money. For example, you can buy some items that have been used. Furniture and appliances (including a car) may be acquired from the second-hand market. In almost every city, there are communities where you can buy used items or exchange things.
Tip 3 – Always create an emergency fund
The emergency fund is a source of security for you and your family. This is an absolute must! Unexpected expenses, unemployment, and illness — you must be prepared for them. Ideally, an emergency fund should be sufficient to cover 3-6 months of expenses. Try to save at least 10% of every paycheque until you reach your goal. Add additional funds to your emergency fund from time to time to speed up the process.
Tip 4 – Look for new ways to make a profit
It is especially useful for a parent who stays at home with kids. If you used to be an office employee, it is time to think about remorseful job opportunities. Even when your baby grows to the age of a schooler, it does not mean that you will have a possibility to return to your full-time work in the office. There are plenty of online possibilities nowadays — from Forex trading to tutoring and copywriting. Think about a possible job and start learning and mastering new skills. You might need to learn about CFD trading, commodities, and securities on the Forextime website. Alternatively, you can polish your writing skills to be able to take freelancing jobs.
Tip 5 – Take care of life insurance
This is usually not the first thing young couples think about. But the truth is that life insurance is a great way to protect your family’s future. This is especially true if you have a mortgage to pay, children or only one of you is employed.
Tip 6 – Manage your budget
Anyone can create a budget, but not everyone can stick to it. Managing the budget in the modern world is simple — there are a lot of applications for this now. All you have to do is enter all the details and credit/debit card information, and the app will start tracking your budget on its own. Don’t forget to enter any purchases you make with cash.
Tip 7 – Plan your holiday carefully
We all need a break from time to time! But the problem is that we sometimes underestimate the financial aspect of the holiday. Food, hotel, airfares from Nigeria to resort countries, gas, car rentals, entertainment, etc. — expenses are often much higher than we expect. There are several valuable ways to cut costs when it comes to vacations:
- Prepare for it throughout the year — pay for everything gradually (tickets, hotels or flats, car rental). This will protect you from spending a huge amount at once.
- Look for last-minute or promotional offers on hotels and flats.
- Travel during periods of low tourist activity.
Tip 8 – Don’t forget the fun money
Every couple needs a little fun! Without this, a feeling of limitation will come, which eventually develops into difficulties in marriage. The money for fun should be an amount that you both agreed on and included in your monthly budget. And you can spend it on whatever you want, and you do not need to consult with each other. This will help you feel, at least once a month, free, solvent and, therefore, happy.
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