(WTNH)– This will really resonate with new parents. How can something so small — need so much stuff?
Your bouncing bundle of joy can change your life and your budget. We are stretching your dollar with some money mistakes parents can avoid.
A baby adds love and joy to a family. But a baby can also bring out bad money habits in parents.
First things first, don’t cave to parental pressure. Try not to buy every new gadget that claims to make your child the next Einstein. And don’t compare yourself to other moms. It doesn’t end well.
Expect new costs. You can budget all you want but when the first child comes along, there are some expenses you may not anticipate. So add more to your emergency savings.
Look at tax breaks. Uncle Sam can help you come tax time. Like the child and dependent care tax credit. Eligible parents may get up to $3,000 per child.
Start saving for college now. The earlier you save — the better.
And continue to fund your retirement. If you need to cut something from your budget, don’t sacrifice your or your child’s future.