Old Bay Insurance Agency Blog
Following the excitement and joy that your new baby brings, you are probably thinking how expensive it is to care for a child. But, it is a simple fact in life. A new baby will affect your budget.
For many parents, they forget to control their spending, with the thinking that they only want the best for their baby. Sometimes, they redirect their money to make ends meet.
For the financial experts, here are some mistakes that you need to avoid as a new parent:
Plan For New Costs
As much as you do all the household chores before such as doing laundry, ironing, folding clothes, gardening, and cooking, it becomes extremely hard to follow your daily routine when you have a new baby.
For one, you are deprived of sleep during the first few weeks. Exhaustion gets the best of you, and you don't clean and take care of the house like before. You hire a maid, housekeeping service, or someone to trim your lawn, which means extra costs for your family.
Purchase A House You Do Not Need
New couples are excited to start their own families, and this includes buying a new house. Often, they do not expect the future expenses such as child care expenses. The result usually means difficulty in managing mortgage payment and other monthly expenses.
Take Advantage On Tax Breaks
The department of a tax credit for Child and Dependent Care provides a certain amount to parents who have qualified a tax credit on child expenses. The provided amount can help new parents with the childcare costs no matter how small it is when you compare it to the money you spend overall.
If you are working, ask your employer if they offer Flexible Spending Account, which allocates pre-tax for child care costs.
Save For College Early On
Having a newborn seems too far away to college yet. As a parent, you try to survive your day with a new baby. But, one way to avoid money mistake is to begin saving for college as early as possible. You can start with a small amount, but it is beneficial in the long run.
Being a new parent can affect your usual budgeting. But, don't forget to enjoy your journey of taking care of your newborn up to the adult years. Have you already bought home insurance to protect your abode fully? At Old Bay Insurance Agency, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. To learn more about how we can help you, please contact our agency at (410) 777-5390 or Click Here to request a free quote.