Money should not get in the way of starting or expanding your family. This is a joyful time meant to be celebrated, so congratulations on thinking about or adding a new family member!
Yes, money matters, but taking a strategic approach to the way you save and invest could help alleviate some of the financial stress associated with this momentous phase of your life. These five tips can help prepare your budget and maximize savings goals.
The first and perhaps best thing you can do when it comes to finances and expanding your family is talk it out. Clearly communicate with your partner and anyone else who is directly involved with financing your newest addition. Be mindful that the road to financial success will be paved with pre-determined goals, budgets, and back-up plans. Honest conversations about concerns, aspirations, and what matters most is crucial.
Examine your current personal or household budget. New family members are expensive, so find places where you can cut back to start saving more. Consider these monthly necessities that will directly impact your budget:
This is hardly a comprehensive list of family expansion expenses, but its aim is to get you thinking about all your baby-budget needs.
Write them down, add them to your current budget, and take action. Work with your partner and family to see where you can realistically cut back and set up a game plan for baby-budgeting success.
As you work through your budget, you may notice areas where you’re overspending (dinners out, fancy lattes) or interest rates that are super high. Make sure you have a thorough understanding of your debt. Include interest rates and term lengths so you can calculate your compounded debt over time. Knowledge is power, so take the time now to know exactly where your money is going, especially when it comes to some of these most common debts:
There are so many wonderful things to look forward to! You and your growing family have a world of promise ahead, so don’t forget about the important long-term financial goals you have, such as:
There are all kinds of families and all kinds of ways to financially support them. Communicate with your loved ones. Be open and honest about your present financial situation and where you realistically aspire to be. Keep in mind that the decisions you make today could directly impact your family’s future. Be thoughtful in your approach to your finances so you can focus on cherishing this exciting time in your life.
Starting or growing your family is an exciting time in your life. A home equity line of credit can provide the access to cash you need to be best prepared for your newest addition. To learn more, please call 1-888-333-1206, visit us online, or Ask a Citizen at your nearest Citizens branch.
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Disclaimer: The information contained herein is for informational purposes only as a service to the public, and is not legal advice or a substitute for legal counsel, nor does it constitute advertising or a solicitation. You should do your own research and/or contact your own legal or tax advisor for assistance with questions you may have on the information contained herein.
1 Contact your tax advisor regarding the deductibility of interest.