When you were still single, you didn’t have much to worry about. Yes, you worried about how to survive till the next payday. But that was about it. Now that you’re a parent, everything changes – from your sleep patterns to personal finance. This is because you are now responsible for a human life at all times.
Just because you’re a parent and you need to put your children’s needs first, this doesn’t mean that you won’t be able to manage your finances well. Here are some useful tips on how millennial parents can save money and still take care of a family.
Prioritize Debts First
Once you’re overwhelmed by all the expenses that come with being a parent, you might be tempted to neglect your debt. This is one sure way to end up retiring and being neck-deep in debt. Millennial parents should plan out theirs and their children’s future carefully. One way to do this is to deal with your debts first. That way it won’t slow down your saving and investing abilities, ensuring you’ll be able to manage your personal finances well.
Seek Professional Help
A personal finance advisor can help you in more ways than you can imagine. Think about all the financial matters that you have no clue on. A money mentor can help you understand all the things you need to know whether you’re interested in investing, opening savings account for your children or are thinking of getting insurance for your home. You don’t need to see your advisor regularly. Discussing your challenges and circumstances with them at least once a month will help you to make better financial decisions.
Boost Your Credit Score
You can’t avoid having credit all your life. At some point, you’ll need to take out a loan for a car, a house or hospitalization. But to be able to land a good deal with your creditor, you will need to have a good credit history and score. To achieve that, you will need to do well with your credit card payments and monthly repayments. Make it a habit to pay more than the minimum amount to pay the principal debt not just the interest. Also, be sure to choose your credit company carefully. Go for one that offers rewards or a cashback feature.
Cut Back On Expenses
If you were used to having your daily fix of Starbucks coffee every morning, consider brewing your own instead. Keep in mind that your personal finance now includes spending for your children’s needs and wants. You can also consider making your own lunch instead of buying from the diner across your office. Instead of a full cable subscription, you can opt for something more basic or even Netflix to save more money.
Choose Kid’s Activities Wisely
Enrolling them to every summer class – piano, swimming, karate and dance lessons – can put a huge dent in your budget. This doesn’t mean though that you shouldn’t let your kids join in on group activities. It just means that you should choose which classes will benefit them in the long run.
Lastly, consider investing your money in long-term investments. Remember, your kids will soon enter college, which will require large sums of money. Plus, there’s also your retirement that you should worry about.
Mari Bunal writes for Loansolutions to help educate people in making informed decisions on taking out loans and becoming responsible borrowers. Being the COO, she feels it is her social responsibility to do so. Learn more from her as she shares tips, advises and stories on finance. Also, she's fond of 9GAG, so you might read some random stuff over there.