4 Financial Tips for New Parents
Is your family growing? Bringing home a new baby can turn life upside down in some unexpected ways – and completely shake up your family’s budget! Here are four smart financial moves that can help you manage the highs and lows of parenthood.
1. Create a baby budget. Baby gear is expensive, from diapers and onesies to strollers and car seats. So make a list of your estimated expenses for diapers, formula, child care, and equipment you'll need to buy as the baby grows. Doing so can help you plan for expenses and avoid surprises. Also, check with other families for creative ways to trim costs – potentially, you could share baby gear among families or start a babysitting swap.
2. Build a financial cushion. Life doesn't always go as planned. For example, a parent who plans to go back to work after parental leave may decide to stay home for an extended period of time. Or, it may become clear that your home needs some babyproofing improvements before the baby is on the move. Having an emergency fund to cover expenses that pop up can help you avoid using credit cards.
3. Start saving for the future. It's never too early to start saving for your child's education. Open a savings account at Community Resource Credit Union to get the ball rolling. You might also consider saving for college tuition with tools such as a 529 plan or Coverdell education savings account.
4. Prepare for the unexpected. It's worth the peace of mind to protect your child's future by making a will, naming a guardian, and reviewing the beneficiaries on your financial accounts. Consider disability and life insurance if you aren't covered already.
At Community Resource Credit Union, we offer a variety of tools to help your finances keep pace with your growing family. Visit a branch or call us at 281.422.3611.