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.

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 your 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, no a bad return, ah!

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.

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