Scotia Investments

Financial Learning Centre

Scotia Investments Financial Learning Centre

Money Management Guide - Having Children with a Financial Plan

Having a child is a beautiful thing, but also highly expensive. Parents have to adhere to the fact that once children are conceived, they are their responsibility, financially and in every other way there is. It is advisable for partners to plan for this important stage in life ensuring that they are financially secure, to the extent where they can comfortably support a child. There are certain expenses to consider when planning to have children, both during and after pregnancy. So take these into consideration.

Assess your financial position

Are you financially secure? Do you have adequate savings/good investments, bearing in mind unforeseen disasters that may arise? Have you already started to save towards your retirement?

Before you decide to have a child, aim to accumulate a substantial amount of savings. Additionally, clear all your debt burdens first, from outstanding loan payments to credit card debt. Raising children is extremely expensive and as parents, you would want to ensure that you give your child the most comfortable life you can, from a financial standpoint.

Conduct research

To further facilitate your being financially prepared for raising a child, conduct your research. You can do so by making a few query calls and/or visits, or surfing the internet, to get the estimated costs for things like the hospital fee for where you'd like your child to be delivered, or a possible c-section procedure cost etc.

Another consideration may be whether or not you have adequate house space, or will you in fact need a larger house for raising a family?

Costs during pregnancy

You should also bear in mind the costs during pregnancy. It is imperative that you visit the doctor regularly, and these fees can really prove costly, based on whether or not you have complications.

Your supermarket budget may also vary at this point, as you have to eat healthy and possibly more than you usually do.

The infant's needs

A child's food and clothing is a major expense that will need to be factored into the equation. Children grow at a relatively rapid rate, so clothing will constantly have to be bought. Then there are other expenses like toys, car seats etc. In general, your financial responsibilities until your child gets older and goes off to live on his/her, will be massive.

In essence, the decision to have a child cannot be made on the spur of a moment, consider these financial factors first. However, if you see yourself having children in the future, there is no reason why you shouldn't't start saving towards that right now.