When starting a family, you might need to adjust how much you save. But that doesn’t mean you should stop saving money or contributing to your retirement accounts. Quite the contrary, it is more important than ever now! And remember, every penny counts toward your overall portfolio.
Assessing your current lifestyle can make a big difference in how much your finances need to change once you have a baby. For example, you will be spending lots of time taking care of your beautiful new bundle of joy.
As such, you might not have as much time to watch as much TV, so do you really still need all those extra channels? It is an easy way to save an additional $20 to $60 every month! Making adjustments to your lifestyle and finances when you start a family is the key to reaching your goals and saving money. Here are some tips:
- Start that 529b college savings account
Give your child the opportunity to get a head start financially by starting a college savings account as soon as you can. The 529 allows you to save for college tuition with considerable tax savings. Earnings in 529 plans are not subject to federal tax, and in most cases, state tax, as long as you use withdrawals for eligible college expenses.
If you are not sure about investing in a 529 account, set up an independent account in their names where you save money over 16 to 18 years that will go toward their college education. Planning for your children’s future is a huge part of starting a family.
- Buy clothes on sale
You will find out when you start a family that babies outgrow clothing quickly! Most of the time, it is not worth buying at full price. The good news is, that there is always a sale on baby clothing. And because you know they are constantly growing, you can purchase larger sizes as well. However, keep in mind that sales are tempting! The point of shopping on sale is to save money—not to spend twice as much because those adorable clothes are on sale.
- Accept Gifts Offered
When you first have a baby, lots of friends and family will want to help you. They will offer to help you with babysitting, bring you gifts, or cook your meals. Take the help! You might be able to save on hiring a nanny or on sending your baby to daycare right away.
The great thing about baby gifts and hand-me-downs is that most people tend to give you stuff you’ll actually use. You can save a ton of money as a result of the gifts you get since you won’t need to go out and buy them.
- Consider making your own baby food
A food processor, some Pinterest baby recipes, and fresh organic fruits, veggies, and grains. That’s all you need to whip up some amazing meals for your little one as they transition into eating solid foods. And since you can make these meals in bulk and freeze them, you’ll save a ton on baby food. Plus, you’ll know exactly what you’re feeding your baby.