The financial considerations of starting a family

POSTED: 27th February 2013
IN: Personal Guides

There are plenty of issues aspiring mums and dads need to take into account before having their first child. In fact, potential parents will need to ensure they are both emotionally and mentally prepared for starting a family.

undefinedOnce both partners have agreed they feel equipped to begin a brood, however, there are still plenty of financial matters that need to be taken into account before having a baby.

How much is enough?

Initially, you will need to think about whether you earn enough to start a family. A Seven Seas Pregnancy whitepaper recently found average parents-to-be believe a combined income of £25,000 is enough to have the first child. However, everyone’s individual circumstances are different so remember to ensure your finances are adequate to not only start a family, but to maintain a certain standard of living.

Is the home adequate?

You and your partner will also need to look at the size of your home and whether it is sufficient to accommodate a baby. While the new tot will need a room of their own, there should also be space for toys, high chairs and other accessories. While upgrading your home in the future is always an option, you still need to be sure your present house or apartment is adequate for starting a family.

What about financial protection?

When thinking about having a baby, it is also paramount you have financial protection in mind. While property owners will have home insurance in place, life cover could also be essential for those hoping to financially secure their dependents. This will help ensure your family receives money in the event the main breadwinner suffers a sudden loss of income or dies. 

Do you have savings?

It is not just ensuring you have enough cash now that is important, as you will also want to make sure there are enough funds in place to give your child a good standard of living. In that case, it is also worth looking at your savings options and whether or not you have enough disposable income to set up a savings account for your newborn. This could help fund their education in the future, for example.

Once you have the emotional and financial aspects of starting a family smoothed-out, it may be the right time to try for a baby. 

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