Ready to Start a Family? Debt Advice to Start Off on the Right Foot
If you’re thinking of starting your family, make sure you follow the advice in this week’s blog to start off on the right foot!
The birth of your first child is a life-changing event, in more ways than one. Beyond the joy and excitement that ensues, it’s important to keep in mind that starting a family comes with serious financial changes and challenges, especially in today’s financial climate. Parents face more financial hurdles than their parents did and raising a child can cost up to $13,000 a year. If you’re thinking of starting a family, here are some things to consider before you take the plunge.
- Baby Gear
Preparing for a baby means making sure you’re ready to welcome them in your life. Your faithful second-hand car might have served you well, but it may not be up to transporting your baby safely. You also have to consider the cost of preparing a nursery, and that’s assuming you have the space for it in your current home. Make sure you have a plan to deal with these costs.
- Smart Budgeting for New Expenses
Diapers, clothes, formula and bottles are just some of the things you may need—and they add up quickly! You’ll need to make sure you have enough money to cover the increase in regular expenses that come with a baby, so stick to a budget and avoid impulse purchases your child will outgrow in a month.
- Have a Plan for Childcare Costs
If both parents are working, you’ll have to budget for childcare expenses. Look into employer-run daycares, nanny-sharing programs or reach out to family members to save on costs. In any case, make sure you factor childcare into your budget for once you head back to work!
- Research Parental Leave
It’s important for you and your partner to find out what kind of parental leave options are offered by your employer. Find out how much time you can take off work and how much time is paid, then figure out whether you need to save up money before the baby comes, and when you need to go back to work.
- Think About Long-term Savings
Raising a child is expensive. Maybe you want your child to attend private school, or maybe you want to start a college fund. If you’re thinking of having multiple children, you might need to move into a bigger home. Your best bet to deal with these expenses is to start saving as early as possible, even if it’s just a little each month.
- Have a plan for Paying Down Debt
Before the baby arrives, take an inventory of your debt and start putting together a plan to pay it off, especially credit card debt. If an emergency happens, being able to take on unplanned debt can be crucial, so the sooner you start to pay back your debts, the better.
Debt Help For New Families in Eastern Ontario from D. & A. MacLeod Company
When starting a family, one of the smartest moves you can make is to reduce your debt as soon as possible. If you think you might need debt help, visit D. & A. MacLeod Company Ltd. Our team can help you plan for the future. Contact us today for a free consultation.