When planning to have or grow a family, you must consider your current state of finance. You and your partner will need to cover the most basic necessities, such as food, clothing, and education. However, you’ll also need to consider some unexpected expenses that may arise in your situation. These are a few instances where you may need to save or borrow more money than you think:
1. Adopting a Child
A day may come when you want your little ones to grow up with a brother or sister. In that case, you might consider adopting a child. Couples usually choose to adopt when fertility issues exist or the female doesn’t want to go through the pregnancy and labor experiences.
Adoptions can get pretty expensive. In fact, according to Nashville Parent, domestic adoptions can cost anywhere from $0 to $35,000. Thus, you will have to save for your adoption or try to find a way to reduce the cost. You can also try to seek assistance through your state or county government if they offer incentive programs.
2. Dental Care
Unexpected dental expenses may also come up for your children one day. They can creep up on you quickly if your children’s adult teeth grow in crookedly. According to the American Association of Orthodontists, between 50% and 75% of people worldwide could benefit from orthodontic treatment. Orthodontic treatment can be expensive, but you can find insurance plans that can help you manage the cost. These types of plans are often available through employers and are more readily available for children under 19.
3. Special Needs
Other expenses that often surprise parents are expenses related to children with special needs. Expecting parents typically don’t think ahead regarding these costs. According to the CDC, one in every 36 children has an autism spectrum disorder. Such children often require special tutors and mentors who know how to communicate with them and help them reach their full potential. Be sure to talk with your financial planner about preparing for this cost should you have a child that falls on the spectrum.
4. Talent Growth
Your children might grow up with special skills and talents you might want to cultivate to give them the best advantages in life. For example, you may have a child attuned to musical tones and notes. Thus, you might want to give them every opportunity to learn a musical instrument or sharpen their singing skills. You might also have a child who seems more mechanically inclined than usual. You could invest in having that child learn a technical skill or trade. School often costs tens of thousands of dollars, so you’ll need to save for that accordingly.
5. Medical Emergencies
Medical emergencies are situations that can sneak up on you at any time. For example, your child can slip on the ice and break a leg. You will need to have a medical savings account or excellent insurance to get the assistance you need if something like that happens. Be sure to review your insurance policy’s coverage to learn more about what expenses you need to be prepared to pay out of pocket.
The best way to ensure you have these benefits available to you is to compare jobs before selecting them. Inquire about workers’ benefits and see if your prospective employers offer health coverage and access to HSA accounts. The more proactive you are in your search, the easier it will be to handle incidents should they arise.
Consider these expenses that might develop when thinking about protecting your family. Preparing and saving for these expenses is an effective way to avoid getting into a financial rut. If you need assistance preparing your budget and managing expenses, talk to a financial advisor today!