June 8, 2015 | Posted by: Carlo Miguel Castañeda | Personal Finance
June 8, 2015
A survey on family planning showed that around 49 out of 100 women at child-bearing age are using a family planning method. This is just one way that you can explore the possibility of growing your family. Your finances and the way you manage it also play a role in determining whether or not you and your spouse are ready for children.
“Think there is never a time where everything will necessarily line up just perfectly on the way to parenthood, whether it’s financially, emotionally, or physically,” says mom and saving advocate Valerie Rhodes, “But there sure are some steps you can take ahead of time to ensure you are in the best position possible to welcome a new little one into your life.”
How do you know that you’re financially ready for a baby?
You’ve talked about it
It is one thing to say “I want us to have a baby,” and another thing to talk about it in terms of finances. When you do talk about it from a financial standpoint, it starts your planning phase as a family. Planning a baby means visiting your doctor regarding the pregnancy. You should also consult your financial advisor regarding your savings.
The Sign: You start putting together a budget that covers potential costs before the baby arrives, and you’ve already considered your future as a family in terms of savings, insurance, etc.
You’re financially stable
Financial stability means that you and your spouse know your budget, and can balance wants and needs out. You’ve also been working in the field of your choice for some time, and saving has long become a part of your routine. There’s also an emergency fund ready should you need it.
The Sign: Basic stability in terms of career, savings and investing can be an indicator that you are financially ready to have a child.
You’ve paid off all debt
Debt management is a large part of a married couple’s financial stability. If a couple has any debts, wiping them out in a timely fashion allows for better management of funds, savings, and any investments you both want to make.
The Sign: Cleared debts, timely payments on your credit card and any other bills may mean it’s time for that conversation.
You’ve thought about a will, and life insurance
Most couples who have life insurance name each other as beneficiaries. Some individuals also get a will made just in case something happens. These allow you or your spouse to ensure that the other is always provided for.
The Sign: Preparedness. A sure sign of being ready for a new life is that you are ready for every possibility that may cross your path.
Having a child is the start of a new adventure for a couple. The biggest sign that you are ready for the responsibility is the fact that you are providing a financially secure and stable life for your future children.
What are the other signs that tell you that you’re financially ready to have a baby? Tell us in the comments!
For more money saving tips, subscribe to the MoneyMax.ph newsletter!