Are you a first-time, second-time, or third-time parent? We understand that every parent is different, and managing money with a newborn is almost always a new challenge. During this time, most parents find themselves unable to balance life, let alone consider their finances. At times, it could be prevailing circumstances like job loss after getting a newborn or simply not having the right footing in money management.
It’s easier to be a bit reckless when you’re the only party spending the money, but when a newborn is involved, the whole narrative changes. However, it’s never too late to change your financial habits and still live comfortably. In this guide, bankruptcy attorneys in Philadelphia will help you out on financial management with a newborn:
1. Make A Clear Budget
For first-time parents, budgeting with a newborn can be an uphill task since you don’t always know what is involved or what to expect. Either way, it’s still possible to budget by making a list of the essentials and making adjustments to your lifestyle.
If you need help with the baby essentials, you can seek help from existing parents, especially those who recently had their babies. At least, they know the current market, most necessities, and they can help you dodge many money blunders they made. Also, there are many unforeseen baby expenses like emergency hospital visits, baby gear, etc. Don’t forget to plan emergency spending as part of your budget to cater to these.
2. Buy the Essentials
One major mistake first-time parents make is shopping for too much baby gear before the baby is born. The truth is, most babies outgrow these clothes within no time. Also, the baby may be born overweight, unlike what you expected, yet you had shopped for smaller clothes. What happens to all that baby gear? No one should ever make you feel under pressure to spend a fortune on your baby. Besides, you could have moved to a bigger home, or the medical expenses may have taken a toll on your previous savings.
Take time to settle in, take one step at a time, and buy essentials like supplies for bathing, diapering, and feeding, as well as linens and bedding. Besides, you can also get second-hand clothes or donations from your friends and family, especially on items they don’t need anymore. At least, you will have saved up a few dollars of your money.
3. Open a Baby Savings Account
Any good financial management plan will always encourage saving, mainly due to the emergencies that may occur once in a while. Sure, it can be tricky to save up money during this time, probably due to reduced income, fewer working hours, unlike before, or the many expenses that come by. However, it’s not entirely impossible. Also, remember, the baby will grow up someday and need a good education, so it will be thoughtful of you to open up a savings account for that.
If you have problems saving and have a stable salary, you could direct your bank to cut a fraction of the money and transfer it to the baby’s savings account. You can also open the account in a different bank but still access it when the need arises. A better way of not feeling like you’re taking all your earnings into the savings is to downgrade the expenses and stay disciplined to the necessities.
4. Get Smart About Buying Baby Supplies
With the rising interest in the baby product business, there’s bound to be competition in the market. This works to your advantage since you purchase bulky baby supplies like baby formula, diapers at much cheaper rates. Additionally, you will frequently come across coupons for baby supplies. These could also save you a great deal. With the availability of social media, it would be easy for you to spot great deals and coupons from your favorite baby products company, so be on the lookout for such. You never know when you’ll get lucky.
5. Review Your Insurance Plan
Insurance is vital in coverage of the significant emergency expenses, mostly medical emergencies that come by, especially with a newborn. Insurance certainly saves you from financial stress, especially in hard times. Therefore, if possible, adding your child to your insurance plan is one of the safest things to do.
If you used an insurance plan for your prenatal care, you know the first-hand feeling it gave you, knowing it covered all your medical expenses at your preferred hospital and pharmacy. Also, you can use the insurance plan to settle for the best pediatrician for your child. Just make sure that you cross-check with your insurance provider to prevent any unnecessary mishaps.
Money can give you a real headache. Therefore, you must take charge of your money as early as possible to not struggle much on rainy days. Even with a low income, money management is still possible. If you can manage a low income wisely, it will get easier to manage a higher pay once it increases.
About the Author
Roni Davis is a writer, blogger, and legal assistant operating out of the greater Philadelphia area.