How to Afford a Family BY JULIANNA STEEN PHOTO BY FREEPIK.COM
I t’s expensive to have a family in this day and age, but it shouldn’t feel impossible. Learn how to prepare your budget and manage your finances with these tips and tricks from financial
START AN EMERGENCY FUND Create a financial “cushion” with money specifically set aside in case of job loss or other emergencies. “The majority (56 percent) of U.S. adults [c]ouldn’t pay for an emergency expense of $1,000 or more… from their savings account,” Bankrate’s 2024 Annual Emergency Savings Report states. Most Americans are not financially prepared and rely on credit cards and loans to pay for unexpected costs. The best way to circumvent this is by planning ahead and saving money for “in case of emergency.” How much is enough? “You should include 3 to 6 months of expenses in your emergency fund,” Moody shares. Start building your savings so you can feel comfortable about the expenses that come with adding another member to your family.
REVIEW INCOME AND EXPENSES REGULARLY For some, reviewing your budget might mean sitting down to go through income and expenses annually, but for others, it could be monthly or quarterly. Decide what works best for you as a couple and intentionally talk through your spending consistently. Be prepared to make changes You don’t know what you don’t know, so don’t hesitate to ask fellow parents and mentors for advice. Asking questions like, “Do I really need this?” can save you a lot of money and stress. Plus, those around you will be happy to share what they’ve learned so you don’t have to make the same mistakes! to your budget accordingly. USE YOUR VILLAGE
advisor Beth Moody. GET A HANDLE ON PRE-BABY EXPENSES
Before you even touch your budget, figure out what will change with your income after you have your baby. Then write it out. “It just makes it real. Expenses are hard to grasp,” Moody explains. “For example, how does the cost of daycare fit in?” Practice living for a few months with your new budget—the one that includes the new baby-related expenses like daycare. It’s important to have a baseline financial plan to begin with so you can adjust your spending accordingly.
66 JANUARY2025 | BRPARENTS.COM
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