Having a child is a joyous yet costly experience in your life. The endless supply of diapers, toys, cute onesies, and childcare add up to a startling $12,680 in the first year alone. WebMD’s recent publication reveals this.
The financial costs of parenthood are dissuading many Americans from embracing parenthood. A survey disclosed that approximately half of couples are delaying having children due to economic reasons.
Bringing a life into this world is expensive, but you can take proactive steps early on to ensure a stable financial future for your growing family. If you plan to start a family soon, here are some tips to help you get your finances in order.
#1 Explore Your Contraceptive Options
Sexually active women who don’t use contraceptives are at an increased risk of unwanted pregnancy. Unplanned pregnancies strain a couple’s finances due to medical expenses and lost wages of the mother.
There is no foolproof way to prevent pregnancy, but you can lower your risk of conceiving by using contraceptives. Unless you’re financially ready to have a baby, it’s essential for you to use contraceptives. This will give you time to prepare financially for a baby.
Condoms– male and female– are 98% effective in preventing pregnancies. Another affordable option to prevent pregnancy is to use oral contraceptive pills. These pills contain hormones that keep you from getting pregnant. When taken regularly, birth control pills are 99% effective in preventing pregnancies.
Intrauterine devices (IUDs) are also popular among women who want to delay pregnancies. Healthcare professionals insert these devices made of plastic and copper or progesterone hormone inside women’s uteruses. Once inserted, these devices can prevent pregnancies for up to ten years or even more.
In regard to intrauterine devices, opt for any but Paragard. Though long-lasting, Paragard IUDs are drawing complaints from thousands of users because they can result in severe injuries.
More than a dozen lawsuits have been filed against the manufacturer of Paragard, Teva Pharmaceuticals. Plaintiffs in the Paragard lawsuit allege that the manufacturer failed to warn customers about the device’s potential to break or fracture during removal.
Qualifying injuries, TorHoerman Law explains, include uterus perforation, excessive bleeding, pelvic inflammatory disease (PID), and complications from an ectopic pregnancy. Instead of Paragard, you can go for Kyleena, Skyla, Mirena, or Liletta IUDs.
#2 Start Saving
A recent release of The Wall Street Journal discloses that raising a child costs over $300,000. That’s a whopping sum.
If you’re planning to start a family within a year and a half, you should start saving money right away. The idea behind this is to ensure you have sufficient funds to meet your child’s expenses once they arrive in the world. By starting to save early, you will be better prepared for the financial responsibilities of parenthood.
Assessing your current financial condition will help you determine how you can save for your child. Track your spending using budgeting apps or tools. This will help you identify the areas where you can cut back on expenses.
You must also prepare a budget and stick to it, regardless. It will prevent you from spending more than what you should. Avoid unnecessary debts and try paying off your current debts.
#3 Find Out How Much Maternity Pay You Will Get
There is no national policy for maternity leave in the US. The country has left it to the states to determine their own policies regarding paid maternity leaves.
Eight states in the US offer paid maternity leaves. These include Oregon, Washington, Rhode Island, New York, New Jersey, Massachusetts, Connecticut, and California.
However, UK residents are eligible for Statutory Maternity Pay (SMP). You will receive SMP if you have been working in the company for no less than 26 weeks and are still working the expected week of childbirth, i.e., the 26th week of pregnancy. On average, you will receive at least £123 every week in the eight weeks if you’re paid weekly or two months if paid monthly.
Whether you reside in the US or the UK, you must find out if you’re eligible for maternity pay. This will help you plan your finances for the period accordingly.
#4 Sell Your Junk to Make Space and Money
Once you start trying for a baby, declutter your space. You can sell all items lying in your storeroom or garden shed and make some dollars.
Apps like Ziffit allow users to sell CDs, DVDs, books, and games online. If you’ve got bundles of DVDs or books, put them up for sale on Ziffit or related apps. You can also sell clothes that you don’t like, wear, or fit in. Depop and thredUP are two apps where you can sell your clothes (even used) and make money.
Handbags, shoes, furniture, and fitness equipment are other items you can sell online and earn some money.
Wrapping it up, the financial aspects of raising a child cause many parents to delay parenthood. However, you can alleviate your worries and embrace parenthood confidently through careful planning.
The tips mentioned above will help you get your finances in order, allowing you to provide for the needs of your growing family. Be sure to start early, though. Early financial planning will guarantee not only success but also peace of mind when you embark on the new chapter of parenthood in your life.
