Children can light up a family, and strengthen relationships, especially among married couples. However, parenthood comes with extra financial responsibilities. Several experts have attempted to explain just how much it takes to raise a child. One obvious thing is that if you do not plan, and save, for your child, you will be frustrated with each step of parenthood.
Some of the areas you should be prepared for, before the birth of your child, include the following.
Even before your baby is born, you will start spending money. You should save for a good health care plan, and insurance. Do this when you are planning to conceive, or as soon as you realise you are pregnant. There are a lot of things you may have to buy, ranging from books on parenthood to a baby cot. The sooner you start saving for them, the better.
From Newborn to Pre-School
It is interesting to watch how fast children grow. At this stage, you will spend money on nappies, food, daycare, a nanny, and other needs your baby might have. For most parents, spending time with their children will mean taking up fewer job hours, resulting in a reduced income. If you start saving before birth, you will not feel the pressure.
If you do not prepare for paying school fees and financing your child’s education, you will face a lot of trouble, when they are ready to go to school. Financial advisers recommend that you start saving for education, right after your child is born. No amount is too little. Put it in a fixed deposit account, so that they can use it for going to college, without you getting into debt.
Adolescence to Adulthood
As children grow up, their financial needs get bigger. At this age, you should start teaching them the value of saving, and make them work for their own money, by doing small tasks, and taking up light jobs.