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Planning Financially for Children Thumbnail

Planning Financially for Children

Whether you are already expecting a little bundle of joy, or you are thinking about growing your family, one of the things that you should start planning for are your finances. You are likely already looking at ways to prepare in other ways, such as setting up a room for the baby. However, it should come as no surprise that children can be very expensive, which is why it's important to plan for all of the expected – and unexpected – costs. Here are some tips to consider.

Build an Emergency Fund

The first thing that most people look at is how much money they have set aside for an emergency. There are a lot of things that can happen both during pregnancy, as well as once the child is born. That is why it's generally a good idea to build up an emergency fund. If you already have an emergency fund in place, you may want to consider padding it a bit more just to be on the safe side. 

Budgeting Money For Time Out of Work

While some employers offer a good compensation and benefits package for parents after the birth of a child, others do not offer much of anything. Take some time to figure out what policies your employer has and whether you will need some extra money saved for living expenses during this time. If they do not offer any paid time off, you'll want to set aside funds to take care of things until you or your partner can get back to work. 

Consider Childcare Costs

Unless one of you plan on staying home with the child, you will probably need to pay for childcare. Sooner rather than later, take a look at facilities in your area so you can know how much you realistically need to budget for these costs. This can vary from area to area, as well as depend on the type of care and how many days you will need it per week. Taking time to examine childcare costs for your area will help you tremendously. While you may not need to have all of this money immediately, you do need to find a way to get that money when the time comes to enroll in childcare.

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.