Parents should increase their efforts to save and invest, spend within their means, take a fresh look at workplace benefits, and utilize tax credits to prevent financial blunders.
1. Be Financially Ready With An Emergency Fund
Every household should have an emergency fund with six months of savings set aside for unforeseen events.
2. Don’t Overspend For Your Newborn’s Needs
Plan out what is essential to get initially, borrow from family or friends for some items and consider thrift shops.
3. Avoid Lifestyle Inflation
Remember, young kids will size out of these things fairly quickly. Avoid throwing lavish birthday parties even though you want to celebrate each year.
4. Saving Early For College
Start saving early for college to benefit from tax advantages and compounding growth. You are not limited to the plan offered in your home state.
5. Keep Up Your Retirement Savings
While saving for your child’s tuition is essential, do not sacrifice your retirement savings. Many parents do that, but it is not a good idea.
6. How To Talk To Your Children About Money
Our children take their cues from us in several different ways. Start to teach your kids early about money at an age-appropriate time.