decided to parenting alone, meaning a single mom already aware of the consequences that will be obtained, especially in financial matters. Unfortunately many of those who frequent the following six financial mistakes.
With all the busyness, so forget that your child will also need to think about financial planning. Why financial planning is important thought early on, so that future children will be more secure.
Unfortunately, not a few single mom who made a mistake when I was just a baby finances. Here are six errors as quoted from MSN:
1. Have No Life Insurance
When you become a parent, having life insurance is needed. “If you die, you have to make sure needs are left behind can still be met,” said the expert financial planning from California, Lynn Ballou.
Ballou added even though you’ve got life insurance from work, it’s still not enough. He also suggests you buy the insurance products currently in good health, do not wait for pain because it will be more expensive.
2. Buying Life Insurance for Babies
Marilyn Capelli, a Michigan financial planning experts say buying life insurance for a baby really is not necessary. “You buy life insurance to a person only if the death of the person making the financial condition deteriorated,” he said.
Life insurance for babies child needs to have if they have a medical condition that is not good. “Rarely does a healthy child will have health problems as adults,” says Capelli.
3. Delaying Savings for Kids Lecture
Not a few parents to start saving for college when the child enters school age. When it was done, it was too late.
“The best time to start is when the child is born,” said the origin of financial planning experts Maryland, USA.
Today there are many different ways to begin collecting money that will be used as the cost of college kids. In addition to saving money, you can do so by investing. But keep in mind, any investment in either gold or mutual fund has a risk respectively.
4. Forgetting Pension Fund
When saving for college kids, you feel financial future is secure. You were so sure that virtually every parent should also think about retirement.
“Saving for retirement is supposed to be the first one done, the college fund in second,” said Ballou. “You and your child can think of another way that the school can keep. Would be even worse if the child had to fund your retirement,” he added.
5. Boros In the Matter of Baby Shopping Needs
The higher the income, the greater the expense to raise a child. Many parents think what they spend for all children is important. In fact it is not. In fact, many parents admit they are quite wasteful in the first year before the birth and the baby was born.
Therefore, before starting to buy supplies children, should make spending plans. Do not be embarrassed to wear second-hand goods for certain equipment such as stroller and bed. Remember, the equipment purchased is largely unused for a year. To dress even less than a year, you’ve gotta buy it again.
6. Working or so Housewife?
If sufficient savings to meet expenses for the child, being a housewife is certainly a good choice. But before deciding, there are several financial factors to consider. One of the important benefits of the office if you work, such as the cost of child health.
“Make a comparison of what are the benefits of your work or not. Consider also what other expenses can be met,” said Downey.