Financial Advice For Young Families – Parenthood

One of the biggest obstacles for young families is financial control in order to have a family balance. Many changes in the lives of young people can affect their economy. Here are some financial tips.

Having children affects the finances of any family. Right from the start, daily expenses increase with every little person added to the family. Suddenly, you’ll have to pay for diapers, babysitting, medical bills, vaccinations, and a ton of other baby-related expenses.

At the same time, one of the parents can take a break from work or work fewer hours to care for the children (which means less income at the end of the month).

Financial advice for young families

Have a family budget

Before we talk about insurance and investing, you should focus on budget and estate planning. It’s a good idea to create a monthly family budget and then control spending to adjust the money to your needs and family lifestyle.

This way you will be able to know how much money you need each month.

Being able to have and stick to a family budget takes willpower. You have to analyze the money you have, know whether it is possible (or not) to have life insurance, whether it is worth investing in it or waiting a little …

There are families who open accounts to save each month, but that will depend on whether it is worth it or not (savings accounts sometimes do not provide access to money).

Children’s education

The sooner you start saving for your child’s education, the better. Education, even if it is public, can cost money and if it is private, it costs insurance.

It is necessary to have money saved not only for the children’s university, but also to be able to pay for another type of education such as extracurricular activities or activities that require investing money in children’s education.

If you start saving as soon as your child is born, you can build a good foundation before you have to pay school fees.

Keep in mind that the cost of education and supplements generally increases with each year of schooling. Education is expensive and with each more child it will increase, so it is necessary to save for it.

Have an emergency fund

It is also very important to have an emergency fund, because you never know when the “lean” period may come. Life is unpredictable, especially with children. Having an emergency fund can help you cover unforeseen expenses, be able to survive when there are periods of lost income, etc.

This money should be placed in an instant access savings account so that you can access this money whenever you need it. Discipline in being able to save is essential, both in terms of building up the fund and not using that money unless it is extremely necessary. This money will only be for emergencies, not just when there is some money in your purse.

What to do if you feel anxious about the home economy

The first thing to do is to stay calm. It’s normal to feel stressed about family finances when a new member comes into your life.

You might not know how to spend your money or what your family’s priorities should be. But when there is a baby, the priority is the baby and then the rest. Food, hygiene and basic needs are well covered.

If you need to temporarily do without other expenses like insurance, do so. If you have to stop buying expensive clothing brands for a while, you will need to do that as well. It is important to sit down with pen and paper and put the monthly income that you have each month and stick to it. This way you won’t have any unpleasant surprises.