Three Financial Tips for New Parents
When you're expecting, you have so many things on your mind. Like wondering if you'll ever get a good night’s sleep again... or if you'll be able to fit into your regular clothes someday... or what to do about child care, not to mention the cost! It can all seem so overwhelming. But, don’t stress. You'll get through this. And the joy of having a baby will soon make all these worries fade away.
It's true, having a child can put a dent in your wallet. So here are three financial tips for new moms that you might want to consider:
1. Toss your old budget
Money management is a big worry for most new parents. Establishing an updated, doable budget and tracking your spending can ease these concerns. Besides including the usual items in your budget – such as housing payments, utilities, groceries, and transportation – be sure to make room for new costs, including baby food, clothing, diapers, and childcare. You'll likely have to adjust your budget a few times along the way to get it right.
2. Get money from the IRS (seriously)
Since your expenses skyrocket as a new parent, isn't it only fair the Internal Revenue Service (IRS) gives you a break on your taxes? You can save money each year by taking advantage of current credit and exemptions for eligible parents, including the:
- Earned-income tax credit (EITC)
- Child tax credit
- Child and dependent-care credit
- Dependent tax exemption
3. Prepare for the unexpected
We know you never want to think about this, but, if something happened to you, how would your baby be financially supported?
Term life insurance can be a smart option. As the name implies, this insurance lasts for a defined period of time – 10, 20 or up to 30 years. You can choose the length and amount of protection. It's relatively inexpensive, easy-to-obtain insurance that can help pay for your child's expenses, and give you some peace of mind.
Life insurance for children is another option. This insurance helps build a nest egg for your child that grows throughout their lifetime. And it offers other worthwhile benefits, too – like providing guaranteed insurance protection as your child becomes an adult, no matter their health or occupation.
Want to learn more? Gerber Life has been helping moms just like you protect their families for 50 years.Join Now
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