Starting a family is something most of us look forward to as we age. However, it also can be really costly. So a couple planning to raise a child should be ready to adjust their financial plans from the beginning.
Check out these financial moves that can help you when starting a family:
Include your Children in your Health Insurance Plan
Having your kids added to your health insurance plan is one of the best financial choices you can do when starting a family. Even before your child is born, take the time to pay your financial advisor a visit to discuss having your future kids included in your plan so they’re also covered between their birth up until the end of the enrollment. So don’t be shy and contact your health insurance provider as soon as possible.
Purchase a Life Insurance
Once your newborn arrives, he or she becomes your life, so it’s just appropriate to buy a life insurance for your family.
Life insurances are designed to protect your family on most worst-case scenarios, that’s why it’s important to purchase one in exchange for a monthly premium. It’s also better to acquire one as early as possible since life insurance calculators offer better rates for younger people with pristine health.
If you’re still a bit apprehensive to dabble into insurance, learn more about IPONsurance –https://www.robinsonsbank.com.ph/products-and-services/branch-banking/iponsurance, a no-fuss savings account that serves as an insurance as well.
Consider Long-Term Disability Insurance
Disability insurance provides coverage in the event that you get too sick or injured. This covers a percentage of your income during the time you won’t be able to work. When getting one for yourself and the rest of the family, consider your monthly wage, expenses, and savings.
Create a Household Budget
Let’s be real, having a child means more expenses for you and your partner. A child’s basic needs such as clothing, diapers, food, and medication can eat up your monthly salary if you’re not careful.
Make sure to include (and prioritize) your child’s necessities when working on your monthly household budget. Adjustments need to be made such letting certain luxuries go. To better manage household finances, you may want to consider using budgeting apps.
Create an Emergency Fund
In life, you can never really predict what will happen next. In case of an emergency such a calamity or a career problem, having a back-up fund can definitely save you and your family. It’s always best to open a savings account that can cover at least 6-12 months of monthly expenses. Having an emergency fund is also more important for families especially if they rely on a single member’s income.
Once you have your own family, it really is better to be safe than sorry. All these insurances make sure you and your loved ones are covered no matter what life brings you. So when the thought of starting a family crosses your mind, better start ticking off these financial moves one by one as well!