How To Effectively Manage Your Finances During Marriage

It’s one thing to manage your finances when it’s just you and your spouse. And it’s another when you’re preparing to or already have children.

While having children can bring a great deal of happiness to your lives, raising them can also prove to be very costly. Yes, there are intangible emotional benefits to having children that money can never buy. As a mother of four lovely children myself, I know that much is true. But you can’t let your excitement affect the way you make financial decisions for your family.

In this new entry in my continuing series for the month of June, I’ll be sharing some advice to help growing families financially prepare for children. Here are some of them:

Have Regular Talks About Money

Having children can dramatically impact how you’ll navigate your finances as a couple and as parents. They can possibly change how you spend and save money in the next two decades or so. That’s why it’s vital that you and your spouse talk about these matters regularly. Have discussions on all the expenses you might spend, your priorities, and your budget for them. Again, you won’t always be on the same page. But what’s important is that you can eventually find a middle ground on your decisions and be able to adjust accordingly.

For example, some couples make lifestyle changes to financially prepare for the expenses that might come with having a child. Obviously, these decisions don’t come out of the blue. Couples spend time talking to each other about what they can do to save more money for the child. These can be anything from reducing out-of-country vacation trips; cutting down on the spending budget; or, perhaps foregoing early retirement.

You can’t make and enforce these decisions alone. commit to what you ultimately decide on together.

It’s worth emphasizing that this is part of maintaining open communication as a couple. When you’re fully transparent with each other about your finances, whether it’s your goals or debts, these conversations come easy and naturally. And when that happens, you can financially plan for your children’s arrival more effectively.

Ask About Paternity and Maternity Leaves

Employers usually grant some form of paternity or maternity leave to expecting employees. Not all, however, provide paid leave. As such, it’s smart to ask about it when your due date is coming up. That way you can plan ahead.

If your employer is not paying you for the time you’re missing, at least you can save up now and make up for the time you’ll be out. You can also save as much of your leaves as you can just in case of other emergencies related to your child.

Keep Adding To Your Emergency Fund

There’s a lot that can happen to your children as they grow up and not all of which will be covered by your healthcare plan. So it helps to keep adding to your emergency fund, if you already have one. You never really know when you’ll need to spend on emergency medical care out-of-pocket.

In case you don’t have an emergency fund yet, you can start one by just setting aside a portion of your monthly income, ideally about 5% to 10%. Put the money somewhere accessible enough to be withdrawn during an emergency. A good rule of thumb is you have about 3 months worth of your income in your emergency fund. But having something is, of course, always better than nothing.

Save Where You Can

This is a fairly straightforward, self-explanatory, and general tip but it’s worth mentioning all the same: save where you can. Some baby supplies, for example, don’t have to be bought. If your relatives or friends have a functioning crib and stroller that their children have outgrown, why not borrow it. You can probably save more than a few thousand pesos from doing so, which can go to your child’s education fund.

There’s no shame in trying to be as cost-efficient as you can in things like these. It’s really just being practical, if you think about it. But what you shouldn’t skimp on is your children’s health and safety.

Check Your Insurance Policies

In this stage of your life, having some of the basic insurance policies in place is almost a no-brainer. You now have people who are dependent on your income. So can you imagine living life without providing them any form of financial protection?

Chances are you already have health and life insurance, which is good. Be sure what you have is sufficient for your family’s needs. If not, it’s good to buy more. Supplement what your employer offers with a policy that you purchase yourself. You should also go back to your policies and see if there is a need to update your beneficiaries.

Everyone knows that the cost of having children can sometimes feel overwhelming and stressful for parents. That’s understandable, given how the different goods that your children will need are becoming more and more expensive. Don’t let that keep you up at night. If it’s becoming too much to handle, don’t hesitate to contact a financial advisor to help you design the best financial plan to secure children’s future.