Giving kids a better and financially healthy future is every parent's dream. Some achieve it with better financial planning. A second child will not be financially risky as the first one. In fact, there are plenty of savings opportunities if you're preparing for baby number two.
Spend time considering the expenses and savings that come with the addition of a family member, so that you can be prepared for any financial adjustments that need to be made.
To help you get started, here are some tips to check:
Plan your expenditures. You will need money to pay the pediatrician, and for all the utilities. You could budget and re-budget in many ways. When you are waiting for a second child you will be aware of what money wise will take to raise the second one. Plan all the expenditure you could avoid for now.
Reduce and reuse
Rethink your income and expenditure. For a second baby, there are many things what not to spend on. Parents can re-use the old commodities for the second child. For example, crib, stroller, toys etc will not be needed. You can save this money to spend for your baby's daily needs.This could be an important financial decision.
Bring peace by buying additional cover
You need to buy extra medical cover as soon your family is going to grow. Existing insurance covers might not provide enough coverage to all your family members. Purchase of a new insurance cover is also necessary. Otherwise, you may need to make adjustments to the existing policy. This will be the big financial decision.
Always expect the unexpected with children. An emergency fund in an easy-to-access account of about six months to a year worth of expenses is necessary to meet unexpected situations with your kid.
Save for them
You cannot prepare for everything in advance. But you can begin somewhere.If you expect to send your child to a college you should start saving now. These could include a certain type of education or funding for learning an expensive sport, art forms etc.
Change of will
This might be an important time to keep an eye on your all assets and financial obligations. The major two assets will be your home and vehicles. You will soon have two children to continue your legacy. It is not an early decision, you could start by knowing your net worth and dividing the assets. Making them as nominees will take away the stress of unexpected events.
A child fund might help you start a savings scheme. You can modulate, adjust, or outgrow this depending on your second child's needs. Create funds to meet your little one's future expectations. At the same time, you could invest in a plan that takes cares of your retired life too.