If you are a new parent or have a little one on the way, you have a lot on your mind. With all the things you have to do to prepare for a new baby, financial planning is probably one of the last things on your to-do list. In this article, we list some quick money-saving tips for new parents and share some strategies you can use to prepare a solid financial plan to protect your child’s future.
The average cost of raising a child from birth to age 17 is $233,610 for a married, two-parent middle-income family, according to the latest report from the USDA (which calculated income and costs based on a 2015 study). Incorporating inflation costs to current standards, that number would be closer to $284,570. And that doesn't even include college, which can total anywhere from $80k to more than $100k, depending on factors like school choice, housing, etc.
You can start saving for the baby by cutting costs anywhere possible, such as dining out, cable television, or subscription services. Apps like Truebill can help you identify and cancel any unwanted subscriptions to lower your bills. The app can also find receipts where you might be due a refund on fees or outages.
Selling old clothing or furniture is another smart way to make a little money on the side. There are countless ways to start stashing away a few extra bucks each month — the important thing is that you have a plan in place.
According to a Care.com cost of care survey , 70% of families are paying childcare rates deemed unaffordable by the government, and half of the families surveyed spend 15% or more of their total income on childcare.
For new parents, these costs can be shocking: Two-thirds of parents said that before having children they had no idea that childcare costs would influence their career decisions, causing them to change jobs for higher pay or ask for a more flexible schedule.
As these costs continue to rise, it’s important to set aside a good chunk of your budget to cover childcare if it is necessary for your situation.
New parents can find themselves in a tight financial situation if they don’t set a budget before buying all the fun items on their new baby wish list. If you haven’t already done so, consider organizing your budget to automate some of your savings so you can save money for big-picture items before splurging on baby clothes and accessories.
Financial apps like Digit will optimize and adjust how much you’re saving each day and automate savings budgets for childcare, vacations, a new home, and more.
Additionally, you could save hundreds of dollars by asking your friends and family if you can borrow their gently used baby goods. Even more, online resellers like Facebook Marketplace or eBay are great places to find items you need for half the cost.
If you want to save for your child’s college education, it’s important to start a college savings plan while they are young. For a 4-year public school, you'd need to add $83,080 (in 2018 dollars ) to foot the bill—or $187,800 for a private school.
Since the average cost of a college education is continually growing, there is no better time than now to start a college fund. If you would like to pair college savings with a life insurance policy for your child, the Symmetry Financial Group SmartStart program is a great way to bundle savings goals into one plan.
SmartStart provides your child with life insurance coverage from infancy through retirement. The plan is coupled with a cash value savings component that grows tax-free and is available for your child to access later in life to use however they want — for education, the down payment on a home, or even as a retirement income stream later in life.
Speaking of financial protection: If you were to pass away unexpectedly, would your family be able to uphold their current way of life? Do you have enough savings in place to support your children if you couldn’t work due to a disability or unexpected job loss? If not, you will want to get life insurance.
Term life insurance is a great option for new parents, as it provides coverage for the period of time that you have financial dependents. Thankfully, getting life insurance coverage is now a quick, easy, and affordable process that you can check off your growing to-do list.
When you Request a Quote for life insurance, you will be able to access a cost estimate for the coverage you want and then get connected with a Symmetry Financial Group agent who can shop to find you the lowest premium rate.
And with all the money you will save on your policy, you might have room in the budget for a pair of fancy new baby shoes after all!
This article is not written by an insurance agent. It is intended for informational purposes and should not be considered as financial advice. For more information on life insurance, please consult with your Symmetry Financial Group insurance agent.