Financial Tips for Expecting Parents
Posted on 03/06/2015
 

Congratulations on expecting a child or planning on having one!
This is an exciting and thrilling stage in your life.  You have shared the news with your ecstatic parents, announced to all your Facebook friends that you are expecting a child, and started look at baby pictures online imagining what your angel will look like. Then reality hits and the concerns start sneaking in with all sorts of questions in mind. Will I be a good parent? Will I be able to manage this change of lifestyle? And will I be able to manage the financially manage this? Suddenly everyone seems to be an expert. Your parents tell you how they managed in the good old days, your aunt shares stories about her neighbor’s niece’s daughter who just had a baby, your best friend start chattering away about how complicated it is to buy a child seat, and your sister might be sharing tips on how you are not supposed to rush to the baby every time it cries. The good news it that Mother Nature gives you 9 months to prepare for the big change in your life.

Whether you are still planning to have a baby or you are already expecting, bringing a new life into this world will be one of the most thrilling and exciting adventures you can go on. That’s why we decided to help decrease the financial stress of expanding your family by providing you with a few tips about how to financially prepare for a baby.

Consider your lifestyle changes
Fortunately, Mother Nature provides us with 9 months to prepare. This would be a great time to review your household budget. Start by taking a look at your lifestyle. Do you both have stable jobs? Do you go out a lot, eat out a lot? Your entire lives and schedules will definitely be changing when you have a baby!

Assess how the child will affect your budget then evaluate your main income and expenses and start looking at things you can already cut.  Will you or your partner leave work to take care of the child? If so, set a realistic budget. Take a look at all the lifestyle changes you can make and how they can positively affect your budget.

Careful with your shopping!
While baby shopping may be one of the most fun and exhilarating things you will do as an expecting couple, be careful as to not go overboard. Between maternity clothes, baby clothes, crib and other baby needs, you will already have a large budget to set aside.

Prioritize your shopping: it is better to buy a good quality car seat than a dozen cute little outfits that your baby might outgrow without even getting the chance to try on! Since you will be doing a lot of shopping, do not forget to take advantage of cash-back programs as well as credit card points.

Take an experienced mother - a sister or a friend – on your shopping trip! She will be more than happy to give you all the advice you need on optimizing your purchases, not to mention glad to go shopping along!

Who’s going to watch the baby?
If you are both working parents, consider all your options before one of you quits their job to take care of the baby. Depending on your financial situation, you can look into other suitable options such as daycare, hiring a nanny or use the help of a relative. Weigh in the total cost of each and compare as soon as possible to find the best option without cutting down your income in half.

Start a baby savings account
once you have an idea of the financial impact of having a baby, set a plan to reduce expenditure and start thinking long term.  In a blink of an eye, you will find yourself taking your kid to school and next thing you know, you are shopping around for colleges. Start saving for your child’s education from now. The earlier you save, the more savings you will accumulate.

Insurance
There are a lot of reasons to get medical and life insurance for a safety and peace of mind. Between doctor visits and prenatal ultrasounds, vitamins, blood test, you will already have a large amount of medical bills that might pile up. Also, now that you have a new life you are responsible for; consider life insurance for both you and your partner. It is not bad luck to think about it! Your family and friends may be there for your child if anything happened to you, but it will help reduce any financial difficulties that may arise and that may keep your child from having the stable future you want for him.

 

Once you’ve covered everything, don’t panic or feel overwhelmed! Unless your situation proves to be really difficult, you won’t need to keep on postponing anymore. Simple budget management will be enough to help you plan your future as a family and welcome your child into the world.

 

Rita Makhoul, Rampurple

© 2016 BankOfBeirut.com. All Rights Reserved