Couples do a lot of preparation before becoming parents, but there are still many things they need to learn even with that. Good financial practices are something that first-time parents need to start doing early. The cost of raising a kid can increase as time goes on, so it is best to start even before having a kid.
Although we understand that parents want to give the most out of their kids, there are times when being frugal is better than impressing them. This way, you will be able to secure their future and provide for them. More than just finding higher-paying jobs, here are some things parents need to consider.
Start saving for a house
Housing is one thing that a lot of people tend to forget about when they start families. Many of them think that their simple apartment will be enough. But when it comes to those with kids, it really is a better option to have your own home. It creates a lot of freedom and more security.
Homes create a sense of permanence, and in a way, it does signify permanence. With homes, you don’t have to worry about rent and finding a new place in case you want a second child. It means kids have a lot more room for themselves. They will be able to run around freely and play games, which has positive benefits to their mental and physical health in the future.
Get a family car
One thing that will make your lives so much easier is owning a family car. For one, it saves you a lot of money on commuting because you can carpool with your spouse and kids. Freedom is another huge benefit of having a car. The kids will have many more opportunities if they don’t have to worry about distance or commute.
Normally getting more debt is not good practice, but it is worth the investment if it's for something like a car. There are things you can do to make sure that you don’t overspend on a car. Some suggest getting a car loan pre-approved before you check out a car. This way, you have an idea of how good your credit is before getting anything. You are also able to set a price limit for yourself.
Open a kid’s savings account
When it comes to saving for your kids, it’s always better to start earlier. Starting a kid’s savings account for them can teach them the value of money and help you save for their future. They will also learn how to save for short-term or even long-term goals. It also teachers them financial independence.
When choosing the right bank account, you should consider one that yields the most returns. Many starter accounts have low maintaining balances and don’t charge any monthly fees. Some would waive the fees for minors, too. Be sure to pick one with a good interest rate and explain to your kids what interest does to their money.
Plan your meals before shopping
Are you in the habit of deciding what you eat at the last minute? Plan your meals and shop at once to save money on groceries. With this, you can maximize the items you buy as well. It can also help you avoid eating out because you already know ahead of time what you will be making.
According to studies, ordering from restaurants is five times more expensive than cooking, and meal kits are three times more expensive. Cooking at home really is the more affordable option and encourages healthier eating as well. You can make use of meal prepping to reduce the time spent on cooking meals. This means cooking some foods ahead of time and storing them in the fridge for other days.
Bring more books at home
Reading is an extremely great hobby to have and instill at a young age. Not only does it make them more curious and intelligent, but it also boosts their creativity. Books are also a more affordable option. Even if the kids don’t have expensive gadgets, they won’t become too bored because they can always borrow books or read what they have.
One thing you can do is buy more books for your home. You can ask your kids to read in their free time. This can even go a step further by becoming a challenge for them. Reward them for every book they read, and they will be more motivated to read. This is also great for children who don’t have a lot of nearby siblings and cousins because they won’t be too lonely.
Being frugal doesn’t mean they can’t have nice things. By creating good habits, you can avoid overspending and going into unnecessary debt over things that were never that important. It will be a lot harder in the future if you spend too much during their earlier years.
