In order for your family to be financially stable, proper planing is key. In as much as it is enriching to have kids, it is also expensive. Having a sound financial plan and planning ahead can save you from any financial problems in future. Having a baby is a big deal and both parents should sort their money affairs first.
Since having a baby simply means new expenses, parents should pay attention to the following aspects of financial planning:
Monthly budget changes
With a new member in the family, your monthly budget must have some changes. If you had planned on having a kid, you have some extra time to save and prepare for the kid. If not, you might want to reconsider your monthly budget as soon as possible. Budget changes means, adjust some payments such as increasing your medical cover to fit the extra member.
Come up with an emergency fund
This will be essential especially since, you have a new member who you know nothing about. An emergency may arise where you will need to use some funds. To be effective, it can be an amount equal to three months of income (after tax and deductions).
Save monthly for education
Open a cash savings bank account where you will be able to withdraw every month as your child advances their education. Stay faithful to it. This account will enable you avoid things like buying an education policy. This is because, if you start immediately your child is born, you will have close to three to four years of savings.
Put up a life insurance
This is for the purposes of deciding how your family will be taken care of when you, the breadwinner cannot earn anymore. Put adequate life insurance and disability insurance, in case you are declared not fit work.