Having kids early: Planning and cautions to be taken
Read on to know the plans and precautions to be taken to avoid financial difficulties while having kids early in one’s life:
Assistance for bringing up a child: When you have kids early, financially you may not spend too much for bringing up the kid. You will be young and strong enough to take care of the kid. Expenses for hiring nanny is saved thus. Hence ensure that the savings are properly invested so that they grow into a sizeable amount to plan your retired life.
Learning financial lessons early: When you have kids early, you face financial difficulties early and realize the value and importance of money at a very young age. So, learning new financial products is easy at a younger age. Make use of lessons to accumulate more wealth and avoid making financial mistakes. You plan more prudently and save more money.
Career: Taking a break for bringing up kids is tough after climbing up in a career. Hence ensure that you plan to have kids in that phase of your career when you stand in the initial stage of your career itself. You can take a break for maternity and then build a career easily again without any break. Thus, you can have a continuous career and financial growth.
Retired life: By having kids early you can get rid of your commitments and will be freed early. Hence the empty nest stage will come soon. Hence retirement planning without depending on your kids becomes important.
Easy to regain strength and normalcy: When you have kids early the medical expenses are less. You can easily regain your strength without much medical intervention. But non-medical expenses of the kid will be high like buying accessories, baby food etc. Hence you need more liquid funds rather than medical insurance.
Insurance premiums: Insurance premiums will be less due to younger age despite maternity risks. Hence plan to take life insurance policies at a young age itself.
Temptations of youth: Never compare yourself with other couples who have kids at a later stage. If you spend more on vacations, outings, and shopping in spite of the heavy expenses incurred towards bringing up the child, you may have to take up too much of loans. So have small budget outings instead. Avoid high budget vacations and impulsive shopping.
By using all the above tips and precautions control your expenses and save more in spite of having kids early. Moreover, when your kids will grow up and have kids, you will be strong enough to support them physically and financially. Thus, the benefits pass on to the next generation also.