Monday, March 12th, 2012
One of the most significant financial decisions a young couple can make is when to start a family. Worries about money are one of the key reasons why couples delay having children. Being financially prepared for the first baby can help reduce the stress that sometimes comes with what should be a joyful occasion. There are three categories of cost to be considered:
Within the first year of baby’s life, you can expect additional costs to be several thousand dollars. A certain amount of financial assistance is available for new parents, including 14 weeks of Government funded parental leave and Working for Families Tax Credits. Financial stress can be reduced by setting a budget for baby. Ask other new parents how much they typically spend and look at ways of reducing the cost, such as buying second hand equipment, or borrowing from friends. While both partners are still working, try and live on the equivalent of one income. Not only will this give you time to adjust to living on less; it will also help you save for the additional costs so you can enjoy your baby.
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