Bringing a child into this world is a lot of responsibility. Here are the things you need to consider in this regard.
Children are the finer points of one's life. Deciding on starting a family will be one of the most important decisions of your life. This decision, however, should be accompanied by various considerations that are financial in nature. Clarity on the current state of your finances and their future projections are critical when you are thinking of bringing life into this world. Providing a stable environment for a young child to grow up is not a small feat and should not be taken lightly. Here are the steps you need to take.
Getting Your Insurance in Order
People often forget the importance of a well researched insurance policy. It cannot be stressed enough that, starting a family requires careful deliberation about the insurance policy that has your family covered. History of illness from your side of your family as well as your spouse’s side needs to be discussed and adequately covered under the insurance policy you intend to take. A highly customizable policy that lets you access a higher cover and add more dependents would be ideal in this scenario. Insuring your child’s healthy future is a crucial step that cannot be ignored.
As a working couple, it is easy to sit back and marvel at the sheer power of what is possible with the combined salaries of yourself and your spouse. The lifestyle choices that you have already made and the priorities you have set for yourself will drastically change with a new baby coming. This new circumstance of a baby come attached with new sets of priorities that will take a toll on your finances. Strict planning cycles that compliment your money for the education and upbringing of your child should be practiced right from the point that you decide having a child would be a good idea. Availing a child plan from mainstream banks would not be a bad idea either. Paying monthly premiums, you get access to a nest egg that would serve nicely as your child grows up.
This is entirely a cultural consideration. Indian’s traditionally prefer marriages to be a grand affair with a lot of pomp and a lot of noise. A majority of the Indian parent’s view it as a priority to be liable to throw a lavish wedding for their children. In fact, it would not be out of place to say that, some parents consider saving for their child’s marriage more important than the family’s insurance needs or education. So, planning well for your child’s marriage with well placed investments and savings schemes should also be an early consideration into your own marriage.
Contextualising Daily Expenses
A child can bring so much happiness into your life. The hard truth, however is that you will need to be financially astute to not get bogged down by the increasing daily expenses your family will have to cope with after the arrival of a child. Good schools, college, insurance policies are of course important facets of raising your child responsibly. At the same time, you will need to be financially flexible to provide your child with small things that will bring him/her immense happiness. These things could vary from, a monopoly board to a playstation. It is important to not get impeded by the weight of future expectations and simply live one day at a time and watch your child grow into a healthy and well rooted member of society.
Financial planning for your children should start early. Priorities will need to be realigned and dreams and hopes repurposed according to what is best for the child you are about to bring into this world. Communicating with your partner about what is important and saving early are key factors that can help in this regard.