Becoming a parent changes many aspects of your life, including your finances. When you’re expecting or getting ready to adopt a child, there are so many things to think about that it can be difficult to know where to start. Here are some of the first steps you can take to prepare for a new addition to your family.
Choose the Right Baby Registry
Creating a baby registry can be a lot of fun — and if you choose a store that has special deals for parents-to-be, it can also save you some money. Many retailers offer price-match guarantees, free gifts and special perks, like an extended return period. In addition, some stores give you a discount on any registry items that you purchase yourself. Shop around to find the deals that work best for you.
Review Your Budget
Before the baby arrives, take a look at your budget. Your financial needs change when you add a new person to your family, and your household income might change as well, so your budget needs to reflect those changes. Talk about your financial situation as a family and come to an agreement about your priorities for spending and saving.
Expenses often go up with a new baby, so now is the time to look at your spending and see if there are areas where you could cut back. Instead of categorizing your spending as “good” or “bad,” use these guidelines to create a budget that you can stick to.
You may also run into additional expenses if you’re adopting a child. We offer an adoption line of credit that is specifically designed to help with the unpredictable financial challenges of adoption. You’ll have the flexibility to pay expenses as they come up, without borrowing more than you need.
Find the Best Way to Save
There are many different ways to grow your savings. The account that’s best for you depends on your needs and goals. If you’re saving for one-time expenses that you’ll be paying for within the next year, like medical expenses that aren’t covered by your health insurance, then a regular savings account may work best. If you have a longer-term goal, like paying for college, then you’ll want to look at college savings plans like a Coverdell Education Savings Account (ESA) or a 529 plan.
Get Advice from an Expert
When your financial goals and life circumstances change, it can be helpful to talk with an expert about your options. If you need help creating a budget, finding ways to save or planning for your financial future, just visit any VyStar branch or call us at 904-777-6000 or 800-445-6289 to make an appointment to talk with a Money Makeover coach. We also offer free financial counseling services to VyStar members if you need more guidance.