Many new parents avoid dealing with and planning for the life changes ahead. Below are a few of the most common mistakes new parents make, and how you can avoid them if you’re expecting.
Not creating a spending plan
The time before baby’s first birthday is usually the priciest, costing the average parent thousands of dollars in additional costs. If you’re planning for a new addition to your family, visit a baby cost calculator to run the numbers on what items you’ll need and how much they’ll cost. To help create your spending plan and future financial plan, you might also want to consult with your financial planner. If you don’t have a planner, try to get a referral from a friend or relative. Most experts recommend reviewing your plan every three months, or at the time of a life change – having a newborn certainly qualifies as a major life change.
It’s likely that many of your friends are in the same life stage as you are and have or are having babies soon. One of the best ways to save on baby items is to swap clothes and other essentials with friends. This is especially fitting for age-specific gear that baby will only use short term. Babycenter is a great money-saving resource for new parents. If you are in the market for something new, Viewpoints.com and eBay are two sites that offer reviews and price comparisons for a variety of makes and models. You can also search the site Craigslist for items at a fraction of the original price.
To protect your family, and to ensure the distribution of the wealth you’ve worked hard to create isn’t left up to the government, you need a will. There are several options in preparing for the “what if” and “when” life scenarios. First, you can hire a lawyer to draft your documents for you. If you don’t have one, you can find a wills and estate lawyer in your area at lawyerlocate.ca or Lawyers.com or get a referral. With a little homework and prep on your part, you can minimize the cost of working with a lawyer. Will preparation checklists will help. Or, you could draft your own will with help from such websites as legalwills.ca or lawyers.com Cost will vary depending on what you are creating. However, be aware that any ambiguities or inaccuracies could cost you and your beneficiaries in the future. It’s smart to have a professional review what you’ve created if that’s the route you’re going.
There’s a lot to think about before your little bite sized cookies arrives, but financial preparation should be added to the top of the list. It might seem difficult to plan for something hypothetical, or an event that’s not likely to happen for years – such as attending college or university, when you’re preoccupied with just getting through each day. Avoiding some common financial mistakes will not only ease your mind today, it will also set you and your family up for long-term financial security tomorrow.
And be sure to check out Angela’s full story in this week’s Globe and Mail.
If you’re a mom already, what’s one thing you overspent on tha you wish you didn’t, share your momma wisdom below!
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Today, when I switched my TV on, I caught the last few minutes of an interview, with a young woman,
talking of saving money. It was aimed at pregnant “first timers”, and alternatives to advertised rather
expensive items. Things mentioned stretch-mark cream and belly-wraps.
Can you please tell me (if you know), where I can locate that information. I have two expecting grand
daughters. Thank you.