3 Essential Financial Planning Tips Every New Parent Needs to Hear

3 Essential Financial Planning Tips Every New Parent Needs to Hear

Having a newborn can be a very exciting and joyful time. However, the introduction of a little one into your life can also bring some stress physically, mentally and Financially.
Having a solid financial plan in place can help ease some of that stress, allowing you to focus more on enjoying these precious early moments with your baby.
Here are 3 quick Financial Planning tips to help deal with the introduction of a new member into your family.

1. Increased Expenses/Budgeting: The addition of a new member of the family means new expenses to cover. According to mummypages.ie, On average it will cost about €4000 to cover the costs of baby’s first year. In hindsight it would be great to have this amount saved up initially, however we know that is not always the case. But don’t fear, a good place to start now is to have a look at creating a budget. Review your monthly bank statements and find the areas where you have unnecessary spending and cut down on this spending, this could see yourself freeing up a nice amount of money monthly, common areas you can cut down on are subscriptions you no longer use, takeaways & dining out too frequently and shopping around for larger expenses like broadband/car insurance. Creating a budget can give you piece of mind knowing where each new expense is going to come from monthly.

2. The second tip and the most vital part of Financial Planning is protecting your new born finically in the event that anything was to happen you. A new born means another human that is dependant on you and your income. I know we all like to believe that we will be fit and healthy and live forever, but that is not always the case. If you were unable to provide an income maybe due to accident/illness or were to pass away, the knock on effect it has on your dependant can be detrimental. Luckily enough, In Ireland there are ways you can cover yourself so that your new dependant wouldn’t have to suffer financially. This can come in the form of an income protection policy where you can insure your income if you were unable to work due to accident, illness or disability. The other cover to consider is a life insurance policy. If you were to pass away, a lump sum or monthly amount can be paid to your dependant. Having this type of cover reassures you that your dependant is protected. Explore these options and implement them into your financial plan.

3. Education Funding: If you have a child in Ireland, you receive the child benefit which amounts to €140 per month. If you can afford to do so, not touching this benefit and instead investing it for your child’s future education can see you building up a large fund by the time they turn 18. If you were to invest the €140 benefit every month from the month they were born until age 18 with an annual return of 6% per annum, you would have a fund of over € 54,500. Over this time you would have contributed €30,240 of the child benefit. In theory this will have cost you nothing as the benefit was received free, not a bad return.

Creating a budget or putting a Financial Plan in place may seem daunting, however it can be a simple process if you speak with a competent Financial Advisor. Get in touch today for any financial planning or financial concerns you may have, we would love to help.

Please find more infromation here.

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We hope the above financial advice in relation to having a newborn will help you prepare for a stable financial feature for you and your children.

Remember, YOU have the ability to control your financial future. We can help point you in the right direction – why not book a financial review?

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What Does the Financial Planning Review Cover?

We review all your pensions and calculate what your retirement income will look like. Based on that analysis, we can recommend a course of action so you can maximise your benefits. Very few employees we talk to have entered full-time employment from day one and stayed with the same employer for their whole working life. Employees call us worried about old pensions, career breaks, job sharing, working abroad, etc. Things are never straightforward until we produce your free report. This is a fantastic no obligation review of your financial wellbeing.

We find that often employees do not fully understand all the fields on their payslip. This can lead to problems, such as not being on the right salary scale point for public sector employees, or not using all your tax breaks correctly.

Whether you need to protect you family’s future, mortgage or plan for inheritance taxes, it is key to have the right insurance policy for your needs. Furthermore, as part of the report, we will search the market for the best prices out there.

If you have more than 3-6 months pay in your bank account (your emergency fund), you are faced with questions how to use your money wisely. Should you increase your pension contributions, open a savings account for your children’s education, invest in bonds, etc.? The MadeSimple report makes these questions much easier to answer taking into account your tax position and financial objectives.

Step 1

You – Complete a short online application form

Step 2

We – Generate your personal report that outlines your current benefits.

Step 3

Together – We schedule a review online (we use Zoom, or a platform you may suggest) or over the phone to discuss what options are available to you.

After we complete the review, many employees are delighted to have their options regarding pension planning, salary protection, life protection, savings and investments explained to them so clearly. Not only that, but we can also set up policies for you all online in a very fast and efficient manner. 

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