Best Financial Tips For Expecting And New Parents:- When the little one arrives in your family, it indeed is a moment of joy and pride. Moreover, it puts the new parents head over heels with them.
The new parenthood brings with it happiness as well as stress as the new born need all the focus. One among such task that surpasses all others, is financial planning. Before your baby arrives, it is appropriate to create a to-do list so that later on things are pretty much sorted out. And also, you can give an uninterrupted attention to the little one. So, while deciding the baby’s room color and name, do check off some of these financial planning pointers for before and after baby birth circumstances.
A systematic approach towards parenthood can straighten up most of the things and lets you freely enjoy the happiest moment of your life. At the same time, apart from money matters, do not forget to squeeze out a little time away for the most needed fun vacations for yourselves.
1) Check Your Company’s Leave Policy
Knowing your company’s maternity leave policy helps you to decide over any additional leaves, which you might require after the birth. Until you resume work, the additional savings might be required to tide over your financial expenses.
2) Emergency Corpus
You should have an emergency savings cushion of up to 3-6 months of your living expenses. Pre-natal period gives you ample time to catch up with your savings.
Buy a life insurance policy - It is important to keep yourselves insured against unforeseen events. Consider 20-year level term insurance that will last until your child is grown.
3) Add Your Baby In Health Insurance
Though very few insurance companies cover newborns from day one, but you can still figure out a suitable health insurance cover for your child as its always better to have them covered.
POST BABY ARRIVAL
1) Stick To A Budget
The first year of baby birth brings with it a lot many expenses like increased health-insurance premiums, baby vaccinations and tests. Therefore it is important to a factor, all this in your budget, which will help you to stick to it.
2) Revisit Financial Plan
A newborn is a milestone in anybody’s life and the same has to be taken into account in your existing financial plans. The new addition into the family requires the addition of newer goals like your child’s education and marriage, which a financial planner will help to add and execute.
Expenses and savings after childbirth have to be re-analyzed so that any change does not hinder the progress of your other goals.
3) Stay Away From Marketing Tactics
Have you ever noticed how children are raised in older times, amid limited resources and negligible baby products? But, these days companies have found a way to mint money by luring new parents into buying newborn products which are completely unnecessary.
4) Prepare A Will
Either include your child in the existing will or create a trust for the benefit of the child which usually goes into effect only if both parents die.
5) Tax Decisions
You can look at the option of investing in your minor child’s name and if it generates an income, then it is clubbed with the parent’s income. But still you can claim upto Rs. 1,500 per child as a deduction from your income.