Between the stinky diapers and late-night crying sessions, you also have a host of new financial responsibilities as a first-time parent.
Your bundle of joy is a precious investment, and you want to provide your child with everything he or she needs and more. However, when you've been used to supporting only two people, you can experience a bit of sticker shock when you start to see how quickly the costs of parenthood start to add up.
Considering you stand only to spend more money as the years go on, follow these tips to keep your checking account out of the red as you start your parenthood journey:
- Borrow items from other parents. One thing new parents quickly learn is their children grow fast. Before they know it, their babies have outgrown their clothes, and they have a ton of unusable clothing. If you're friends with these parents, ask if you can borrow these used clothes. Your children will likely grow just as fast, so there's little incentive to continuously buy new clothing when you can borrow what you need. Plus, if you can keep the clothing, you can pass it on to future new parents.
- Purchase life insurance. Once you're a parent, you must start thinking about your child's life - even the possibility that you won't be in it. If something were to happen to you, your partner or both, you want to ensure your child will have everything he or she needs. Life insurance provides a financial safety net.
- Don't underestimate the cost of child care. One of the biggest expenses new parents will take on is day care services. If you and your partner are working full time and don't have a family member who can watch your baby, you'll need to pay for child care, which is costly whether you opt for group day care or in-home services. Talk with your partner and determine if it would be more affordable to have one parent stay at home until your child is old enough to attend school.
- Create your own baby food. Packaged food for babies costs more than you need to spend - especially when you can mash up your own food. Instead of paying for baby food, make your own to save some money.
For more information about smart ways to manage your finances, contact Landmark Bank.
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