Financial planing for new parents – a quick guide

Fatherhood is a beautiful feeling for every father of a newborn baby. But then a baby changes the whole thing, including your bank balance. While many expenses are inevitable – like medical and vaccination costs – as a new parent, you can still slice major costs with some thought, planning and creativity.

Both parents have to sit together and device plans for kids to help him in the future.

It’s easy to fall into the marketing trick of private insurance companies selling baby products just after you become a parent. So someone wants you to purchase stuff as a gift of a lifetime to your spouse, and then most others want you to buy things that your baby will love (even before it can come to its senses!).

To get over these sales gimmicks, it’s important for new parents to take time to evaluate the baby’s needs versus wants. Most baby products that are marketed as “essential for babies and mothers” are not really essential products.

So before reaching to your wallet for splurging on your baby, keep in mind these simple tips that can save you a serious amount of money over the first few months and years of the newborn’s arrival:

1. Have a “baby budget”: Like you budget for every major cost item in your household, also create a “baby budget”, and then stick to it. Include the costs that will arrive the moment your baby does and will be incurred in its first year. Key items that must be a part of that budget are – health care products, child care, and daily baby products.

2. Avoid big brands: Spending on baby products is guided by more emotions than any other sort of buying. After all, you don’t want to compromise at all on your baby’s needs and products that satisfy the same. But be careful not to stock up on too many items of big brands – that price their products way too expensive, expecting to cash in on the emotional buying behavior of new parents. Especially if an “essential” item is available in a dependable, lower-priced brand, consider trying that one out instead.

3. Don’t Overbuy: As we mentioned, becoming a parent is a highly emotional moment in one’s life, and especially when you are a first time parent. In this emotional moment, as it happens with so many first-time parents, they cross all their budgets to buy those fancy, adorable, baby clothes, toys, and other paraphernalia. If you are an about to be parent, it’s very important that you make a budget and not overshoot it. If you happen to find something special that your baby simply “can’t do without”, do one simple thing instead of buying instantaneously – write it down on a wish list, and then save money to buy it sometime later or in a sale.

As we mentioned, becoming a parent is a highly emotional affair. So just take care of your emotions while spending money on the baby, Instead, spend greater amount of time with your baby. Kids are after all your most priceless possessions and grow up all too soon. Happy parenthood.

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