Preparing for the patter of tiny feet is an exciting, if not somewhat daunting time, and such a momentous event will clearly have major implications for household finances. So, while the financial planning may not feature at the top of prospective parents’ ‘to do’ list. It is a key action that will need to be tackled.
Raising a child is an expensive business, particularly when childcare and school fees are factored in. Additionally, new parents typically find themselves having to meet these extra costs on a significantly reduced household income. This means most people find themselves more financially stretched when they start a family than at any other point in their lives.
Take stock of your finances
It’s therefore vitally important to work out a budget before the baby is born. Opening a savings account is also a good idea in order to amass the funds required to cover initial expenses and help finance the early months when money can be particularly tight. In can be a sensible strategy that will ultimately reap rewards in the long run.
Look to the future
It’s also advisable to consider other financial planning issues when starting or expanding a family. For example, your new arrival may necessitate extra life cover, a change to named beneficiaries in a pension, a new will or the opening of new savings or investment products.
Review your finances
In short, thorough financial planning before a new arrival is essential. So, if you’re considering parenthood, it could be the perfect time to review your finances so you can be sure you, and all your family, stay financially secure.
Contact us today for a free financial planning consultation and ensure you have everything set up as you begin your journey into parenthood.
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