New parents will learn in this article 9 money tips that will help provides adequately for their kids and family.
1. Embrace the hand-me-down
Yes, new parent always want their baby to have something sparkling new and I strongly believe kids deserve it, however think secondhand of clothing, toys, furniture, bikes. this mean you are handed down money you don’t have. It will reduce cost for you as new parent and your kids will still enjoy the basic needs. Remember there are other needs that you can buy as secondhand like diaper, cereal, milk, soap, etc. so be a smart parent and embrace this money tips.
2. Saving doesn’t have to be a chore
You will be amazed how you will save a lot of money by wisely choose where to have your family picnic, vacation and other family activities. Your kids will still catch fun and not knowing that you are skimping. New parent need creativity to create fun –filled family activities within their budget. You can think of going for tourism trip within your country instead of travelling out of your country yearly. Visit to new place will be fun to your kids.
3. Teach your kids the 10 percent rule
Your kids can start learning about money as early as 2 or 3. That’s when you want to start the grocery-cart dialogue about why we’re buying this brand instead of that brand.
But the number-one rule to hammer on as money tip from the day your child can talk is the 10 percent rule. If your kids save 10 percent of money they get, from the time they’re babies until the time they stop working, they’ll have plenty to retire on and be financially free. This is a way new parent can start to teach their kids financial intelligence.
4. Show your kids that needs and wants are two different things
As new parent living by this rule when your kids are younger will help you to get through the first few years of parenting without making the common error of spending money you really don’t have on things you could truly live without. (You’ll figure out, for instance, that your kids can jump right from the crib to the big boy bed – they don’t need the toddler size. Even swing sets, if they exist in a nearby park, aren’t a backyard must.) Even better, if you model this rule for your kids, they’ll grow up knowing the difference themselves.
And when their chorus of “I want” gets out of hand, start an allowance and tell them to buy what they want with their own money. They’ll quickly realize money is a limited resource and they, too, will learn to prioritize.
5. Save in the fat times for the lean
There are the years you get a bonus, nothing in the house breaks, and your car is still running fine. And then there are the other years. It’s key to take advantage of the flush years to save more money, rather than spending every money you make. You’ll be glad you did when the financial tide turns out differently in other year.
6. Ditch debt for love
Here’s what the research shows: Recently married couples who accumulate debt fight more often about money. The more often you fight about money, the more likely you are to divorce!
On the flip side, recently married couples who accumulate assets have stronger, more stable unions. Having a baby is stressful enough. You don’t need finances to stress you out further. The family that saves together stays together. Be a wise and smart
7. Take a fresh look at your benefits
As a new parent if both you have health insurance policies, take the time to look over the policies to see which provides the best coverage and value for your child. When you look at the details, you may find it makes sense to cover the entire family under one parent’s plan and ditch the other or for your spouse to stay on his plan while you and the kids are on yours. It is good for family to have health insurance cover.
8. Make a will. Just do it
Quite frankly, research shows that 70 percent of adult don’t have wills. Those numbers include an awful lot of new parents, who risk subjecting their kids to a nasty guardianship proceeding if something happens to them simultaneously. I think it’s unconscionable.
I know the reason many people won’t come to this plate. It’s not the fear of facing the possibility of your own death.
9. Look into life insurance
If it would be difficult for your partner to raise your child without your income, you need insurance on your life. The same is true in reverse: If it would be difficult for you to raise your child without your partner’s income, you need insurance on your spouse’s life.
For most people, I’d suggest a term insurance policy, which is a death benefit without an investment account attached. choose a government recognised and experienced insurance company.
your comment and questions is highly welcome