10 Financial Tips for Starting a Family

June 30, 2022

So you’re thinking about starting a family – check out these 10 financial tips as this exciting new chapter of life begins. 

  1. Make a New Budget

A new addition to your household calls for a variety of new expenses. It’s important to factor in all of the diapers, wipes, bottles, and other necessities to a new budget as soon as possible. Deciding what adjustments you need to make to your budget before expanding your family will save financial stress down the road.


  1. Buy Clothes On Sale

Whether it comes to baby clothes or maternity clothes, there are many new outfits to be purchased. Keep in mind this new attire usually only lasts a short amount of time. Before you know it, that baby bump will disappear and your once three-month-old baby’s clothes will be out-grown. If you’re looking to save, opt for more budget-friendly options found on sale racks or in thrift stores.


  1. Accept Gifts and Help

Starting a family is an exciting time for everyone in your life and loved ones are often willing and eager to give you support. Sometimes that support can come in the form of gift giving or offering their services. Either way, don’t turn them down out of politeness. Instead, realize the people who are offering want to help.


  1. Create a Savings Account for Your Child

It’s never too early to start saving for your child. Raising children is expensive, and as they grow up, costs like college or buying a car can seem out of reach. If you plan on assisting your child with future expenses like these, it might be a good idea to consider opening a savings account for them. This way, your money can build over time rather than having a large expense sneak up on you in the future.


  1. Make Meal Changes

Starting a new family comes with having another mouth to feed. This could mean having to make some budget-friendly meal changes. Making meals at home is typically a cheaper option than dining out. One thing many people don’t realize though, is the cost benefits of shopping for groceries at your local farmers market. Markets like these can save you up to 40% more on groceries.


  1. Review Your Insurance

Adding little ones to your insurance plans is important. All of the sniffles, scrapes, and doctors’ appointments can add up – even in the first year alone. Doing your research on new insurance plans and calculating it into your budget will relieve financial stress in the future.


  1. Establish / Build Your Emergency Fund

An emergency fund is important on its own, but when you have a family to consider, the impacts can grow even more. The consequences of getting in an accident or losing your job can make it difficult to support a family. Experts say you should aim to save for three to six months of expenses, but putting any money you can into your emergency fund is a great start.


  1. Consider Hand-Me-Downs

It can be surprising how many family and friends have high quality clothes and items that they don’t use any more. For example, baby clothes that were grown out of after only a few months. Strike up a conversation with families who have older children now. They might be more than happy to get rid of some lightly used treasures.


  1. Evaluate Housing Changes

Starting a family could get you thinking about your current housing situation. Wanting to up-size for more space or move to your desired school district are normal thoughts. Despite these preferences, make sure to consider whether it would be financially healthy for you to take on a new mortgage. Bulking up your savings the first few years into starting a family could benefit you more than rushing to move now.


  1. Keep Your Job in Mind

Finding a work-life balance can be challenging at times, especially with a new family under way. Make sure to sort out what your work and child care schedules will cost and look like. Continuing to keep your job in mind, research your employer benefits. A few examples to look out for are information on parental leave, flexible spending accounts, retirement plans, or other offers.


Tags: Tips and Tricks, Budgeting