Having kids is a pretty wonderful time of life.
The satisfaction you get as a parent seeing your kids smiling back at you for the first time when they are a baby. Witnessing them take their first steps as a toddler. Sending them off to their first day at school.
Life changing, happy experiences that just can’t be replaced.
And while having kids for most people is an immensely enjoyable experience, what is actually happening on a practical level is your income typically goes down and your expenses go up.
The perfect financial storm.
We get asked the question all the time, “When is the right time financially to have a child?”
And the honest answer is you never are.
It is just a matter as to what degree you can absorb it.
Take for example this article from BT which pegs the cost of raising two children for a middle income family $812,043 (from birth until they finish their education, in 2011-12 dollars).
A considerable amount of money!
So being mindful of this can help you make better decisions on a day to day level around expenses and even start making plans and preparations for the future.
As the article suggests, proactive steps such as:
- Ensuring you have a handle on your day to day budget
- Starting to save consistently
- Getting access to all you are entitled to from Government assistance
- Making sure you have right insurances and protection in place
You see as people, we just don’t know what we can handle until have been thrown into the middle of it. Until we have been tested, both emotionally and financially.
But a bit of planning and foresight can certainly help in the long run.
If you would like to speak with one of our financial planning experts about getting ready for your new family please call (07) 3231 4250 or email firstname.lastname@example.org
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