How to prepare financially if you are going to have a second child

The popular saying “everything is easier after the second child” is true to some extent. It is true that you have developed your confidence and ability to change diapers, you have found the key to balance eating and sleeping times and you know how to distinguish whether the fever will go down with a lot of water or if it is something that requires a visit to the pediatrician.

But in terms of the economy, life can become more difficult as the family grows, since, according to recent studies, the average expenditure per child stands at € 14,196 a year —according to a study by the Spanish Confederation of Housewives, Consumers and Users (Ceaccu).

Planning for the arrival of a baby can be exciting, but it is also a challenge . Get organized to avoid some of the stress , plan ahead and put your financial situation in order before the new little one arrives.

Reduce your debt

Keeping up with accounts is important at any stage of life, but when you are considering having more children it is crucial . After all, children are a huge expense in the family economy. According to INE data, the average expenditure per household in 2017 was 29,188 euros, which meant an annual increase of 3.5% for each family unit.

First of all, get an idea of ​​the money you have, how you manage expenses today and how you will do it in the future. Check the family budget to see where it could be cut to use that saved money for other needs.

Get your house ready

Make sure you have everything you need to be ready for the baby’s arrival. You may already have a crib, car seat, and stroller for your old toddler, which is a huge financial advantage . You will also keep children’s clothes, a breast pump and bottles that you can reuse. The most advisable thing is to make a list of what you have to make an estimated budget that covers all the needs.

Research on special discounts and programs that reduce the costs of children’s everyday needs is a great option to keep the budget at bay.

Long-term expenses

When you plan to add one more member to the family, it is recommended that you also take into account that you may need to change some things , such as the car or the house, to adjust to your new situation. Making a long-term estimate of possible expenses that may arise will help us to deal with them in an organized way in the future.

Another improvement that may emerge has to do with childcare. Can the current child care situation be maintained to cover all children? Would moving to be closer to family members help reduce expenses? It is important to evaluate all the options and think about what is best for each case.

Budget of your time

Your time is a very precious asset . Medical appointments, social and educational commitments are increasing with each new family member, so plan ahead to avoid unnecessary stress . It may be necessary to ask for job flexibility, or it may be necessary to leave the professional situation for a period of time by one of the members of the family unit.

 

Leave a Comment