Here Come The Girls

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How to Financially Prepare to be a New Parent 

Being a parent is expensive, which is a confusing notion to wrap your head around when you just look at how many people have kids, or multiple kids. With the cost of raising a child so high that even single people would balk at the cost, how do they do it? Cutting corners and pinching pennies is the obvious answer, yes, but for those who are in a privileged position of having a great job and healthy income, the answer instead lies in planning.  

Plan properly and you can give your child the life they deserve with all the help and support you can expect. It is fine then to wait for that promotion and to wait until you have reached a point in your lives that you can easily manage the weekly costs associated with raising a child, especially since the initial years are often the most costly when you consider day-care Look for easy ways to make money now, such as selling cars, and other items you no longer need. 

Ensure You Can Manage The Weekly Costs Comfortably  

The cost of raising a child (outside of London) and supporting them until they are 21 or have finally graduated from university has risen considerably in the last few years. Now, it is estimated that it will cost on average £230,000 to raise one child 

Break down that cost by week and you can easily calculate how feasible it is to raise a family. In London, for example, the weekly cost associated with raising a child averages out to £226.15. You can cut this cost down of course with unique solutions, but knowing you can comfortably afford this cost is a good way to start.  

Start a Savings Account for Your Child  

Putting away money for your child is smart. Even if they don’t use it for their university, they can instead put it towards their first house or to start a business or whatever else is necessary when they are an adult and need a leg up in life. Rather than put the money into an account they always have access to, put it into a savings account so that you can earn money on interest.  

Many parents are doing this, and today the average saved before the child is even born is £900, with some parents having £2000 or more in savings for their child. 

Create (Or Update) Your Will  

When you have a baby, it is important to update your will. Hire a will writing solicitor and an accountant to ensure that your assets go where you want them to be. On the off-chance you were to die before your child turns 18 they will have a portion of your assets, but if you want to ensure they are cared for after you are gone, updating your will to reflect this is a must.  

Get Life Insurance  

You have a child, and things happen. If you or your partner or both of you die, you want to know that your child will have at the very least the financial support you are not there to give, which is why life insurance is key.  

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