How to Financially Prepare Before Having Kids
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The panel included Rod Griffin: Senior Director, Consumer Education and Advocacy, Experian & Christina Roman: Consumer Education and Advocacy Manager at Experian; Beverly Harzog: Credit Card Expert and Consumer Finance Analyst for U.S. News; Paulina Likos: Investing Reporter at U.S. News; Take Charge America; Lawrence D. Sprung: CFP® President of Mitlin Financial, Inc.; and Andrew Chen: Founder, HackYourWealth.com.
Questions We Discussed:
Q1: What are some anticipated expenses to plan for before having a baby?
Q2: What are some money moves to make before having a baby?
Q3: How do you know when you’re financially ready for kids?
Q4: What are some ongoing lifestyle changes you might need to account for when having kids?
Q5: What are some ways to save on essentials for babies?
Q6: What are some strategies for protecting your child’s financial future?
Q7: What are some ways to save on babysitting and childcare?
Q8: What are some strategies to save for a child’s higher education?
Q9: How does having kids affect your debt and credit?
Q10: Any final thoughts or tips on how to financially prepare before having kids?
Retweet these insights from our community:
A1: Expenses to plan for ahead of time include hospital bills and baby essentials, and if you plan to take unpaid time off from work, you’ll have to plan for that as well. #CreditChat
— American Consumer Credit Counseling (@ACCC_TalkCents) September 23, 2020
A2. Pay off as much debt as possible, achieve a fully funded emergency savings account with at least 3-6 months’ of living expenses, get used to planning and following a budget, take out life insurance. #creditchat pic.twitter.com/JhPmXeMx5r
— Take Charge America (@TCAsolutions) September 23, 2020
A3: It’s important to be in a situation you can reasonably feed and care for a baby, but I’ve seen people do it on a wide range of incomes. I think it’s important to be as emotionally and mentally prepared for kids as possible. #CreditChat
— Christina Roman (@Teena_LaRo) September 23, 2020
A4: Considering the expense of children is high, parents will likely need to save more money to attend to the rising costs of children’s needs. This means, spending your money wisely and saving more since the family now has more responsibilities/expenses. #CreditChat
— Paulina Likos (@Paulina_Likos) September 23, 2020
A5a. Be open to hand-me-downs. Baby clothes are a no-brainer, but also things like strollers, high-chairs and cribs. Just be sure they’re up to current safety standards and haven’t been recalled for any reason. #creditchat
— Take Charge America (@TCAsolutions) September 23, 2020
A5a. Be open to hand-me-downs. Baby clothes are a no-brainer, but also things like strollers, high-chairs and cribs. Just be sure they’re up to current safety standards and haven’t been recalled for any reason. #creditchat
— Take Charge America (@TCAsolutions) September 23, 2020
A7: Depending on schedules, try to set up a child care solution with another parent, grandparents or even share a nanny. Look into military family subsidies, child care vouchers (states vary) and tax deductions or credits related to child care. Get creative! #CreditChat
— Beverly Harzog (@BeverlyHarzog) September 23, 2020
A8: Apart from a 529 plan, you can invest in a mutual fund by allocating money for the investment on a consistent basis. Remember that you will be taxed on any profit through a capital gains tax when you decide to sell the shares. #CreditChat
— Paulina Likos (@Paulina_Likos) September 23, 2020
A9. Children can greatly increase you expenses but that only effects your debt and credit if you allow it. If you continue to live within your means and save #CreditChat
— Larry Sprung, CFP® (@Lawrence_Sprung) September 23, 2020
A10. There’s no “perfect” time to start a family, but you’ll have less stress and more enjoyment if you plan and prepare as much as possible. #creditchat pic.twitter.com/nQC5QRfrHR
— Take Charge America (@TCAsolutions) September 23, 2020