Young parents and those planning to set up a family should be able to make correct and responsible decisions about the future of their family. Because the cost of raising a child has increased significantly the recent years, parents will need to redefine their financial goals and create a new family budget, taking into account the new circumstances.
Moreover, they may have to consider buying a new home (an initiative that, according to the Nobel laureate, Economist Shiller is one of the most important in our lives, but also the most dangerous as an investment) or a new bigger car. Additionally, family planning should take account of new categories of costs such as possible medical expenses, clothing, equipment, nutrition and education of their child. They should, also, adopt a new life model, avoiding financial mistakes, such as over-indebtedness, lack of insurance, or the potential pause of savings.
Timely and effective financial planning to meet the future needs of their children will enable them to prepare themselves better for their own retirement years.
The birth of a new child is a special event in everyone’s life. Along with the joy of the child’s arrival, there are also increased responsibilities and new challenges. In recent years, the cost of a child’s upbringing has increased significantly, which prevents young parents from thinking about a second or third child, causing serious demographic imbalances in the country. The birth of a child requires a redefinition of family needs as well as a revision of the existing family budget.
With the right planning and some valuable tips, future and new parents can be prepared appropriately to cope with the expected financial changes to the extent that new expenses occur with the advent of a child and the awareness of his needs.
The costs normally incurred with the birth of a child are:
The main factors, which young parents should think and evaluate, and the actions proposed for them, are:
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