Parenting comes with a huge financial responsibility and to prepare for it, here are five money milestones you should consider.
Having and raising children come with a price tag, a huge financial responsibility that must be seriously prepared for.
Money plays a vital role in raising a child and the financial responsibility that comes with it has to be put into considerations when you prepare to become a parent.
Having kids like getting married has to be prepared for and apart from the mental readiness to face the struggle that comes with parenting, financial readiness is equally important. Here are five money milestones you should probably hit before having kids.
1. Have a stable career
Having a secure work situation is important to parenting . This could be a white collar job or self-employment, so long you have a regular and legit means of income.
As a prospective parent, you need to consider having a stable job that gives you regular salary that can take care of your children's expenses. You also have to consider a job that will give you certain perks like paternity or maternity leave.
2. Have enough disposable income
Your disposable income is what remains after deducting taxes and social security charges, After that, you decide to spend or save as you wish.
Having enough of such income put you in a better situation to take charge of your kids' financial needs because raising kids can be very expensive and you need enough disposable income to raise them properly.
3. Have an emergency fund in place
The importance of emergency funds in parenting cannot be underestimated because parenting comes with some unexpected expenses.
Having this emergency funds will protect you from getting overwhelmed by expenses you'll incur from taking proper care of your kids.
4. Contribute to your retirement
The cost of raising kids increases as they grow, and for you, this means the higher they go, the more you spend.
So, saving for retirement before you start having kids is not a bad idea because the saving will not only secure your future but also relieve the potential burden of your children being financially responsible for you as you age.
5. Save for their education
You should also consider saving for your kids' education before having them. The cost of education in Nigeria increases almost every session, even public schools jerk up their prices.
So, saving for their education now will reduce your financial burden and help you prepare for their academic pursuit financially in future.