The birth of a child brings happiness, hopes and dreams. Many refer to a newborn as a bundle of joy. But before you welcome your child into this world it is important to be prepared on all fronts. Are you financially stable enough to take care of the child? You need to make sure that your financial assets and liabilities are enough to sustain a healthy grooming experience for your child. Here are a few things to consider in terms of finance while welcoming a new member into the family:
Surviving on a single income
For a few weeks of pregnancy the mother of the child will have to stay home. Are you stable enough to afford this? Arrangements have to be made for a steady post-pregnancy recovery as well. The result of these arrangements is increased expenses and decreased income.
Note all maternity benefits
You need to find out what maternity benefits you are entitled to. As per the Maternity Benefits Act, a woman who has been part of an organisation for a minimum of 80 days during the 12 months preceding the date of her delivery is eligible for a paid break of 12 weeks or 3 months.
You will find some baby products and clothes out of your budget, yet enticing to buy. Remember that your child will outgrow it soon, therefore stick to necessity. Strike the balance between expenditure and proper grooming of your child.
It is important to make arrangements for unforeseen circumstances in your life and possibly the life of your newborn. Your newborn is more susceptible to sickness in the growing phases and it is advisable get health insurance if you can.
Expenses grow with the child
Prepare yourself for increase in expenses as your child grows. Keep yourself ready and strategise well. As your child grows, so will his needs and demands. Education, healthcare and lifestyle are some of the things that will involve increased financial expenditure.
According to a recent study, the average middle class family spends around eight to ten lakhs on childcare upto the age of three since conceiving. Plan accordingly and make sure you are stable enough to welcome your newborn into the family. Be sure you are financially secure enough to take care of your child before you take a major step in family planning.