Financial Wellness Minute: New Babies Change Your Budget!

Get smarter about your money with this Financial Wellness Minute. You may be thinking about starting a family or may have just brought a new baby home. You probably don't need statistics of how expensive raising kids can be. I'm Patrick Voigt, Manager at Mid Minnesota Federal Credit Union's Detroit Lakes Office. Planning for kids and the additional costs is key. You need a new budget.  Adding a child to your household can mean hundreds more in monthly expenses. Write down all expenses and look where you can spend less. Once that is completed, estimate the new costs related to the baby and add those in. Build up your emergency fund. With a new person in the house, comes new unexpected costs. The goal is to have three to six months' worth of living expenses in an emergency fund. Set aside a small amount of money every week or month to a separate account so you are not tempted to spend it on everyday purchases. Consider life and disability protection.  Your family may depend on your income, so the need for life and disability insurance increases. Check with your employer for these benefits, they tend to be the most cost-effective way to get started. Twenty or thirty years of term life insurance is a good starting point. Create or update your will.  A will is the only document that allows parents to name guardians for their children. If your financial situation isn't complicated, one can be created on a website such as LegalZoom for a limited cost. If you have more assets, contact an attorney to develop a basic estate plan for you and your family. Want to know more about budgeting for a family or have a weekly financial wellness tip sent to you? Sign up below or, contact your local Mid Minnesota Federal Credit Union Office. Sign Up for a Weekly Financial Wellness Tip Mid Minnesota Federal Credit Union is federally insured by the NCUA and we are an equal housing lender.