It’s going to be Mother’s Day on Sunday, so in the spirit of celebrating all of the great moms out there, we’ve created a list of important money tips for new moms. I think we can all agree that being a mother is tough, whether you stay at home, work full-time or a little of both. Sometimes it can be easy to start neglecting your finances. We don’t want to see this happen, especially when raising kids, we want you to have the best financial health possible.
Our Top 5 Money Tips for New Moms
Adjust your budget This may seem like common sense, but once you become a mother your priorities shift and so should your budget. In our minds, we think, ‘Oh, well, I’m not going out and spending money with my friends anymore, so why follow a budget?’ While true in some ways, chances are you’re spending way more money now that you have a child than you ever did partying with your friends. Most debt experts recommend reviewing goals, investments and your budget every few years. Motherhood is the perfect excuse to refocus your finances. Look for ways to save You don’t have to buy everything new. We know how tempting it is to buy all of the new, cute baby things – motherhood is practically an economy of its own – but you can save tons of money by opting for hand-me-downs or buying secondhand. Honestly, babies can’t tell the difference between a new shirt and a gently used one, not to mention they will outgrow it before you know it. We recommend only buying certain items brand new, such as car seats. Better safe than sorry in that department. You can also save money by sharing a nanny with a friend. If you nanny-share you stand to save up to 20% on your childcare, the socialization is just an added bonus. Don’t neglect your retirement This is a tough one for moms because to them kids always come first. However, in this case we recommend getting your retirement in order before you start putting away money for your child’s education. Doesn’t seem quite right? Well think if it like this, in a worst case scenario your child can get a loan to pay for school, you cannot get a loan to retire, nor can you work forever. Consider it an investment in your child’s future by making sure you can afford to live once you retire.
Get life insurance pre-baby Trying to start a family? Opt for a life insurance policy before you get pregnant. If you wait until you are already with-child it could mean more expensive coverage. Life insurance may seem like just an extra cost right now, but once you have a family it is essential. Time is money, baby When you have a baby, you want to spend all the time in the world with that tiny little person and watch them as they grow. However, your time has value. Not only do new moms need ‘me-time’, but think about how much your time is worth. Many moms don’t bother with childcare when it comes to shopping or running errands and simply take them along. You may think you are saving money on childcare, but in turn, if you bring your kids along to the store chances are you end up spending double on ‘extras’. Simply consider the value of your time: 30 minutes of shopping alone, sticking to your budget versus an hour of shopping with kids, spending more than you planned.