I feel like I’m all over the map with my postings. There is so much going on these days. I’m getting ready to return to work, planning baby showers, and visiting my brand new baby niece. This posting has brought me back to the topic of finances and babies…
Anyway I came across an article in MSN Money this morning on the 10 mistakes that new parents make. One of the top ten mistakes is overspending on baby costs. Obviously this doesn’t come as much of a surprise. Baby items are expensive and excited parents are more than willing to pull out their wallets for every little item they think their little tike will need.
But the article lists some other mistakes that I thought I’d mention… in case my pregnant friends are reading this blog 🙂 Here are the other nine financial mistakes new parents often make…
- Skimping on Life Insurance –Obviously you need a hefty amount to provide for the little one in case you die.
- Not Purchasing Disability Insurance –More people become disabled in their lives than die. This one is a must in my mind. See my posting on disability insurance.
- Buying Life Insurance for the Baby –An unnecessary expense.
- Not Starting a College Fund –We all know we should save, save, save.
- Stopping Retirement Savings for College Funds –You can always get a loan for school. You can’t get a loan for retirement.
- Postponing a Will –Guardians need to be named.
- Overpaying the Tax Man –You can get a break for expenses from the tax man through tax credits and flexible spending accounts.
- Creating Savings Accounts in Your Child’s Name –When the little tike grows up, he/she can run off with the money, instead of using it for college.
- Not considering all of the financial factors in the Stay-At-Home vs. Work decision –Financial and emotional aspects should be considered from every angle. The answer will be different for different families.
To read the original article… click here.