Parenting is one of the toughest but most rewarding jobs in the world. According to society’s standards of measure, successful parenting consists primarily of raising morally responsible and well-cultured kids into adults.
However, there’s more to parenting than imparting good morals in your kids. Good parenting also includes familiarizing yourself with certain tips that might help you to weather all manner of financial storms.
This post shall discuss the top five financial tips that every parent must know.
- Come Up With a Family Budget
A family budget is the surest way to keep tabs of your expenditure. Using the budget, you can easily estimate your financial strength at the end of every month, as well as uncover the areas where you could be losing money unduly.
Here’s how to go about drafting a family budget;
- Get a bank statement
If you’re a busy parent, you don’t need to physically walk into your bank whenever you want to process a bank statement. You can spare yourself the trouble by taking advantage of internet banking services offered by many banks nowadays. That way, you can have your bank statement sent to you at the end of each month, or on an interval of your preference.
- Determine your monthly expenditure
Once you have your bank statement, now determine how much is coming in and how much is going out. At the very least, you should be living within your means, which essentially means that your expenditure shouldn’t exceed your income.
- Determine your family’s essential expenses
Examples of essential expenses include food, rent, mortgages, and utilities. The conventional wisdom is to meet the costs of your essential expenses at the beginning of each month, before spending on anything else.
- Determine your non-essential expenses
Non-essential expenditures vary by each family. For instance, parents with teenage children won’t need to invest in toys. Similarly, those with kids aged 2 or below may forgo entertainment expenditure. The most important thing here is to prioritize your non-essential expenses, depending on your family’s needs.
Now that you have everything in order, proceed to make your family budget.
- Take Up a Good Insurance Policy for Your Kids
There are numerous insurance covers that you should consider applying for your kids. Examples include education insurance, medical insurance, accident insurance, and final expense insurance. You’re probably already acquainted with the first three but are wondering what final expense insurance is.
Also known as burial insurance, final expense insurance covers the bills associated with your demise, such as medical and burial expenses. There are numerous insurance companies today that offer final expense insurance as part of their package. However, finding a reputable final expense insurance company isn’t a walk in the park, especially if you don’t know what to look for.
At the very least, choose a fairly reputable firm that enjoys a long history of customer satisfaction, as is evidenced by reviews from their previous clients. You can then proceed to request mutual of omaha life insurance with the peace of mind, knowing you’re dealing with professionals.
- Take Advantage of Your Family and Friends
If you’re a new parent, the chances are that you’re not the first one to have a baby in your family or circle of friends. There could be many parents in your family or friends circle who’re ready and willing to offer free gifts to you. Taking advantage of these priceless offers will go a long way in saving yourself from needless expenditures.
An excellent way to go about this is to plan a baby shower and invite all and sundry. Almost everyone that shows up will carry a gift for the expected bundle of joy. So, for the first few months, you won’t need to spend on newborn stuff, such as nappies.
Also, you might consider checking out offers by retail outlets on baby-related shopping. For instance, Amazon frequently offers discounts for parents that set up a baby wish list.
- Boost Your Savings
Many parents already appreciate the importance of boosting their savings. With enough savings, you won’t need to borrow money to buy gifts for your kid or treat the family to a weekend getaway. That will ensure that you don’t plunge into needless debts.
One of the money-saving tips you can implement as a parent is to avoid impulse buying. To do that, apply the 30-days period, where you subject your impulse urge to spend on an item to a 30-day wait period. If you still have reasons to buy the item thirty days on, it’s worth spending on.
Another golden money-saving rule is to apply for a savings account that offers you the best interest on your money. And while you’re at it, work out an arrangement with your bank to automatically deduct a certain percentage of your monthly paycheck to your savings account.
- Make Extra Money on the Side
Whoever coined the phrase ‘stay-at-home parents’ might not have had the best interests of new moms and dads at heart. The phrase resonates with staying at home tending to your kids’ basic needs without sparing any time to venture into income-generating activities.
It might have been the case several years ago. However, many parents can now juggle between changing their kids’ nappies and engaging in an income-generating activity. The fact that you’re on paid parental leave isn’t a reason to be complacent, not when you have skills that you can use to earn extra bucks on the side.
The good news is, there are plenty of passive income opportunities that you can pursue from the comfort of your couch. Examples include data entry gigs, articles, academic writing, blogging, and tutoring, to mention but a few.
There go our top financial tips that every parent needs to know. Implementing the above tips will go a long way in helping you secure your children’s financial future.