It will come as no surprise when I tell you that kids are expensive. With the arrival of every cute little bundle comes years of paying for daycare/kinder/school fees, extracurricular activities, connecting hotel rooms and a gazillion items that go walkabout (I’m looking at you water bottles, lunchboxes, shoes, clothes and sporting equipment).
I’ve always been pretty bad with money – I’m good at spending it, not so good at saving it. So my 2018 resolution was to improve how I manage my hard earned. Yes, I have finally started listening to my accountant husband and I’m becoming more money savvy to prepare for my kids’ future.
The main thing I’ve learned – planning ahead saves a lot of stress down the track. Here are three important learnings:
1. Prepare for the unexpected.
While some surprises (like my second pregnancy) are welcome and exciting, others aren’t. Your child may need an expensive medical procedure or childcare costs might spike along with your utility bills. Be prepared for the unexpected by putting a percentage of your pay into an emergency fund. Ideally you should have enough in your emergency account to cover three to six months of expenses and the balance shouldn’t be touched for any recreational costs like Paw Patrol Live tickets (whoops).
It’s also a good idea to take out income protection insurance so that you can keep afloat if you suddenly find yourself without a salary. While we’re on the topic, you also need to update your home and contents insurance because you never know when your delightful offspring will break something expensive. Yes, I’m writing from experience. While throwing an epic tantrum, my three-year-old bent back the setting on my engagement ring and the diamond fell out. As I was about to speed dial our insurer, we found the diamond in the adjacent car’s tyre tread. If my eyesight was bad and we didn’t have insurance, it would’ve been hello cubic zirconia.