Whether you're just beginning to think about starting a family or expecting baby #3 next month, one thing's almost certain — your expenses are about to change. You'll need to adjust your spending habits so your income can support the costs associated with supporting a larger household. Here are five things to consider as you prepare your budget for a growing family.
When you're expecting a new family member, moving into a larger living space may top your to-do list. While a larger home or apartment can better accommodate a growing family, it can also undo a tightly-wound budget. Security deposits or mortgage down payments are the highest upfront costs, but don't forget to consider other expenses. The costs of moving, higher utilities, and additional furniture can add up quickly.
With another mouth to feed, your food budget can climb quickly without adequate planning. Learn ways to lower grocery bills by using coupons and filling your car with items that are on sale. It's also possible to keep costs down by planning meals and limiting dining at restaurants.
3. Life Insurance
Life insurance provides financial support for loved ones left behind after your death. If your family depends on you financially, they might need that extra protection. Life insurance could cover funeral and estate-related expenses, like paying off a mortgage or providing college funds for children. Compare insurance premiums and policy rates since they vary by insurance carrier.
4. Health Insurance
Health insurance is one of the biggest expenses for a growing family. While it's easy to feel overwhelmed by your options, search for a plan that meet your family's current health needs and budget. Speak with a health insurance professional if you're unsure which plan is the best match for your situation.
5. Child Care
Child care consists of both a financial and a logistical cost. If you plan to use daycare services, factor in the additional time getting your children to and from the child care location. As kids get older, their extracurricular activities can become even more demanding.
A new family member will fill your heart and change your life. They will also affect your monthly budget and possibly your long-term financial goals. We invite you to schedule a complimentary, no-obligation consultation with a Vermont Federal CFS Financial Advisor* who can provide comprehensive financial guidance based on your specific situation.
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