New Year's Financial Resolutions For New Parents
30 December, 2022
You’re thrilled to welcome the little one into your family, but have you made room to accommodate this new addition in your current financial planning too? Financial advice for new parents is not always straightforward, and just like parenting, there is a learning curve involved.
With 2023 around the corner, here are some easy and smart financial resolutions. If you are looking for money saving tips for new parents, this is where you should start:
Cut down on expenses
Ideally, you should have a feasible and practical savings strategy in place the moment you decide to start a family. Besides the obvious major expenses such as hospital costs, other expenses such as daycare/help, nappies, baby food etc., can balloon too. This is probably the most underrated of all financial tips for new parents.
Also account for a fall in income in case you plan to take a longer maternity leave or if one of the parents decides to stay at home indefinitely to take care of the child. Start practising frugality. What better way to practise frugality than to cut down on some expenses and deposit this amount in a Savings Account. Besides offering customised savings plans and fantastic returns that will help ease financial crunches in the initial days, with HDFC Bank you can now open a Savings Account from the comfort of your home within minutes.
As new parents who understand the value of time, you also understand that your Savings Account should help you save while being hassle-free to operate. All your statements, and transactions are easily accessible online via your mobile phone or computer, and at the push of a button or tap of a screen, you can easily access a host of value added services as well.
Clear your debts
Still carrying the burden of your education loan, or paying multiple EMIs every month? It is best to clear these debts ahead of time to avoid your salary trickling away while trying to meet the burden of these recurring expenses. While it may seem an uphill task, having financial discipline and investment vehicles for added money will help in paying off debts earlier than expected.
Insure what you love
Your insurance plan will have to change to accommodate the new family member. Not only that, you need to get even more serious with your health insurance as you have a dependent family member now. Assess if your health insurance needs revision to add more cover and if your life insurance cover is adequate for your family’s needs. Despite the budgetary constraints, this is also the right time to take a term insurance plan, as the need for protection is higher.
Invest early in your child’s future
Your child deserves the best education. It is never too early to start investing towards their future, especially since the cost of education is only likely to go up significantly by the time your child is ready for college. Chalk out the areas to invest in – such as education and healthcare – and then choose need-specific plans. Not only that, you should also bump up your own investments to avoid giving up on your own future goals and dreams, and to ensure you have the same comfort and lifestyle even after retirement.
Set aside an emergency fund
While you may plan for an ideal future, the future can be uncertain. Keep some money aside for emergencies so that you’re financially secured in case something untoward happens. A smart way to do this is by leveraging this emergency fund to generate additional revenue with the right saving vehicle.
If you’re planning to grow your family in 2023 and beyond, make sure you study this financial checklist and are in control of your finances well before the little one arrives!
Looking to apply for an HDFC Bank Savings Account? Click here to get started!
Read more on how to make a savings plan.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.