Bringing another human into this world to experience life with you is the most beautiful feeling ever!Keeping these emotions aside, have you thought of other ways in which you can make this experience more pleasant? Read this article to know more about these 7 expenses you should be prepared before you meet your bundle of joy!
Before having a baby, some of the essential things you must consider are: are you mentally and physically ready? And most importantly, are you financially prepared?
Your child’s education may be something you might consider too early to plan for, but if you budget it right, you and your family can sail through this journey pleasantly. After communicating with your partner about the crucial aspects you need for your child, you can start considering the right ways to save up for the future of you and your family!
You must take into account the fact that having a child is not a one-time expense. Your overall costs will include one-time expenses as well as ongoing expenses.
Let’s first have a look at the expenses that will come your way when the little one arrives :
1. Medical expenses
Medical expenses during childbirth can also be considered a one-time expense. There are other things to consider along with just the process of delivery. If you have not taken a medical insurance plan that covers the expenses of the procedures related to maternity, then make sure to understand the costs incurred.
Find out if it will be a normal delivery or a C-section. Once you’ve covered that, you can start considering the other things like post-delivery expenses in the hospital and the preliminary health services required for your newborn baby.
It’s always good to estimate the costs beforehand so you can start saving for them well in advance.
2. Expenses once the baby arrives
Baby expenses are an important aspect that needs your attention once your beautiful baby is born. From new clothes to towels to diapers, take it all into account and ensure you set aside funds for these ongoing expenses.
Even though they’re so tiny, baby clothing is adorable, and it’s okay to purchase a few special outfits for your newborn. However, as a whole, they are a substantial financial drain because newborns quickly outgrow their toys, clothes, and other items. Shop economically without hesitation, whether online, through friends, or in person. It’ll make you handle your finances much easier.
If your partner would like to take help, consider that as well. For all of these things to function smoothly, make sure you and your partner are involved in the financial planning and budgeting process.
3. Expenses that will take place in the future
If you are going to be a step ahead and want to plan far ahead, set up funds for your child’s education and health. Open a bank account for your child. Many banks offer free accounts for this reason. Make regular deposits into this account. Start doing this before they reach adulthood, and the wonder of compound interest will transform this tiny investment into a useful sum.
Constant increase in price due to inflation is inevitable; it’s important to keep in mind that the cost of higher education is rising rapidly. The power of compounding can be used as a weapon against this, but you need to stay invested for a long time. The sooner you begin saving and investing for their future, the better your chances of succeeding in providing for the child’s education.
Indeed, we can’t predict what the child will do with their life, but it’s still important to save money now so that it’s there when the time comes. Currently, you must picture the type of education you wish to deliver; the scenario will be very different if your child wants to study in India versus pursuing a degree abroad.
You can make mutual fund investments in manageable chunks over time through an SIP. If your objective is to fulfil a medical or educational necessity, you should restrict your SIPs to that one specific reason.
Don’t ever dip into your SIP funds for anything else. Factors such as monthly salary, future large purchases (such as a home or car), the presence of dependents (such as parents), and so on all affect how much of one’s income can be put into SIPs. Therefore, it’s essential to take into account the aforementioned factors.
If you’re raising a child, it’s always good to expose them early on to many parts of the world so that they are prepared when they are growing up. By allocating a small travel fund for them to use whenever needed, you’ll be able to give them a great childhood and also make them global citizens who don’t feel out of place when they travel later on as adults.
Medicine expenses are another crucial aspect you cannot overlook when you have a baby. You need to have insurance or a fund that protects them in case of mishaps in your life. This will give them the money required to survive or live comfortably. Also, having money aside for medical use protects them from diseases, so budget wisely.
Children are a wonderful gift — if sometimes an expensive one. The main thing to remember is that averages don’t mean much when the range is as wide as it is with costs around a baby. Good health insurance can protect you from hospital bills for the most part, but only planning and budgeting can help you handle the rest.