As any parent fully understands, the job of raising children comes with nearly endless responsibilities.
Keeping children safe, helping them to learn and grow in healthy ways, and setting them up for success are of course the broadest concerns, but there is so much more to consider. For example, parents’ finances become significantly trickier the moment kids come into the picture. Not only are children themselves very expensive, but they also bring new financial concerns to light. So, here are 5 financial precautions and safeguards for new parents to consider.
1. Start A College Fund
At some point, parents need to face the unfortunate fact that higher education is incredibly expensive. Of course, there are always some opportunities for scholarships, financial aid, and student loans, but if you want to have the opportunity to send your children to the universities of their dreams, it’s best to start a college fund as early as possible. Whether you do this through your bank, or simply by setting money aside on your own, 18 years of build-up can yield a surprisingly large chunk of tuition when the day comes!
2. Obtain Proper Car Insurance
Car insurance is of course important because in most cases it’s illegal to drive without it. But in addition, parents have extra incentive to talk to Aviva and make sure they have the best possible coverage. Why? Because a car crash – even a minor fender bender – is about the quickest way to lose several thousand dollars out of nowhere. Such a loss can be an enormous burden on parents, and insurance can help to lessen costs.
3. Obtain Proper Home Insurance
Home insurance is important for the same reason as car insurance, in that it can help you to avoid major repair costs following instances of vandalism, weather damage, etc. However, home insurance is also important in providing your children with a proper home environment. Kids feel safe at home, and being able to address repairs quickly and easily helps to maintain that sense of security.
4. Consider An Emergency Reserve
This one isn’t complicated, but it’s one that many parents often never get around to doing. A disaster or emergency fund, however, can be a very good idea for parents. Of course, with kids in the picture it may not always feel like you have extra cash to put into such a fund. But at the same time, having kids multiplies the chance that a disaster or emergency may happen in your family, and at such a time a relief fund can be of huge help.
5. Teach Your Kids Good Habits
Finally, it’s never too early to teach your kids good financial habits. It could be everything from teaching savings through a piggy bank, to teaching money management through a small allowance, or even teaching them to work for income when they’re old enough for summer jobs. Whatever the case, kids who are financially sensible will make things easier on you as parents!
This is guest post by Byron Davis. Byron is a freelance writer who covers a variety of topics on parenting, marriage, and the home.