The excitement of becoming a new parent can at times blind one to the looming financial implications. As a new parent you will mostly focus on giving everything you have to your bundle of joy.  This includes your time and love and as time goes on your bills will start increasing.  For most parents the discovery that there is more to brining a family than love and time comes too late. It is no wonder then that new families find themselves deep in debt within a few years.
     However, it is easy to avoid this pitfall by learning from mistakes other parents have done. This guarantees a more comfortable life and more peace of mind. With your finances under control it is easier to budget and bring up your new family without much hassle.
     Below are some of the most common mistakes to avoid as a parent to ensure you live a quality life:
1.      Failure to Plan Ahead

The demands of modern lifestyles are many and as a parent you might realize belatedly that you were too steeped in work to even realize there were new financial responsibilities on the way. In fact some parents only get to see their kids after they have been born due to work commitments out of their home towns.

However, you can create financial strategy early enough by talking to a financial advisor to determine how your finances will change once the family starts expanding.

2.      Ignoring Increasing Debt

Debt is as American as American pie as one analyst observed recently.   A 2015 report by Federal Reserve Bank of New York the average household debt in the U.S is $132,529. The level of debt has increased by 10% according to the U.S BLS. Most new parents have a source of income and accessing credit is easy.

With a credit card it is easy to accumulate more debt and if you welcome a new member into the family without controlling such debt the repercussions can be devastating.  It is important to look at debt control measures such as debt settlement to avoid saddling the household with debt.  A new parent should endeavor their debt to manageable levels.

3.      Overlooking Tax Credits

Did you know you could enjoy tax credits as a parent? For instance, child tax credit and dependent-care credit can help you save a lot of money that can go into other aspects of household expenditure. If you are unsure about such tax credits talk to a financial consultant who will guide you on how you can claim such benefits.

4.      Failure To Invest In Life Insurance

What are your priorities as a parent? Should you invest in a personal loan for your vacation or life insurance coverage for your family?   A 2015 Insurance Barometer Study shows life insurance has fallen down to no 7 in terms of financial priorities by households with 60% of parents seeing no need for such cover. This is the worst mistake you can make because you don’t know what can happen tomorrow. Always protect your family in case you leave them behind.

These are just a few of the financial mistakes you should avoid as a new parent. For better quality of life reduce debt, invest in life insurance and always plan ahead.

Author Bio

James Lou is a debt settlement consultant based in New York. He has over 24 years in the industry. Lou is also an avid writer and mentorship speaker in the country.

 


Comments

dell
03/15/2017 3:44am

nice

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04/04/2017 4:54am

That is definitely happen with new parents and they wanted to save the money but they can’t. For them here is the wonderful article to save money for future. In this cutting edge saving money is most important and significant to sacrifice.

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