If you and your partner are thinking about having children, then it is a wonderful adventure. It does need some consideration and planning, though. There are some steps that you can take, to make sure that you go into it as prepared as you can be. One of those ways is to be financially prepared. You are never going to be completely ‘ready’ for a baby. There are so many reasons why you could put it off. You might want to own your home or have traveled the world before you have children. But if you are at the point in your life where you are thinking about it, then here are some things to think about and prepare for.
- Have a Steady Income Source
You don’t need to be raking in millions of dollars to be able to afford a baby. But it can help a lot if there is some security in your current income. If you are temping or change around jobs fairly often, then it might not be the best time. It can relieve a lot of stress in your life if you don’t have to worry about where your income is coming from. No job is going to be 100% secure in today’s climate. But there are some situations to be in that are safer than others. So have a little think about how things are for you and your partner at the moment.
- Think About Maternity and Childcare Plans
If you and your partner are both currently working, you will obviously need some maternity leave when you have your baby. Then the big decision comes as to how much leave you will have? How much can you afford to be away? Will you even return to work at all? So answering these questions is good to decide ahead of time. If you plan to return to work, it is never too early to look into how much childcare will cost you. Then you can work out if it is a viable option for you.
- Start a Savings Account
Let’s face it, having children does cost a lot of money. The good thing is that isn’t all at once. So you have time to put money aside and save for larger things. You might want to put money aside for more everyday things like beds, bikes or toys. You might want to save money for things later in their life like college or a wedding. If so, you might want to look into setting up something like a RESP fund. Putting money aside to help pay for a registered education savings plan is a great idea with kids.
- Pay Off Debt
With an extra mouth or two to feed, the stability of a job is important. It is also important to not have to worry about paying off debts every month with your income. So if you currently have some debts, work out a strategy to repay them as soon as you can.