How Can We as Parents Get Ahead Financially?

Parenting isn’t easy but more importantly it sure isn’t cheap. Diapers, toys, clothing, ballet classes, soccer practice, education costs, LOL surprises, Hatchimals, the list goes on and on and literally never ends. Sometimes it's really tough to not give your child everything he/she wants but at the end of the day a lot of these things are ultimately just "things" and are not a requirement for raising great children. After having my 3rd child I realized that my expenses become somewhat excessive and were out of line with my budget (so much so that I actually accrued a significant amount of credit card debt). Because of this I feel it to be my duty to share some do's and don'ts of becoming a new parent.

1. Don't Overspend on Your Baby

Trust me when I say, you don't really need that pricey babybjörn bouncer, high chair and carrier set. Sure, the products are pretty cool but if it's not in line with your budget it's really an unnecessary spend for something that will ultimately go to waste. At the end of the day you child is going to outgrow that thing before you know it and you will ultimately have spent hundreds on "stuff" instead of putting it towards a college tuition fund for your kid. My #1 tip for any new parent is to just reach out to family and friends and see if they have any leftover baby essentials they could share with you. Most baby products are one-time use! Once your child outgrows their crib there is no practical use for it anymore - except for stuffing it in your garage to collect dust. So, seriously give second hand items a chance! Also, if you know anyone that does not plan on having children anymore don't be afraid to reach out and ask if they have any unwanted items, this could really save you a huge amount of money in the long run. And that's what we as parents are supposed to do - be there for each other and help out whenever possible.

2. Budget Your Expenses & Reward Your Kids Accordingly

It's very easy to want to come home all the time with some toy or knick-knack to see some smiling faces but we as parents really have to be highly selective when doing so. Our parents sure didn't have the plethora of options available today and we all turned out fine for it (I think? haha). Regardless, if things are tight, in order to keep in line with your budget you really need to create a monthly budget and set an amount for discretionary spending every month. Do your best to not worry about everyone else and their children as that will just inevitably lead to a petty keeping up with the Jones' scenario. It's easy to compare every little thing as a parent and become slightly jealous, but we all have to understand that nobody is the same! What may be acceptable for one family might not be for another. Your first and only priority is to focus on your family - not everyone else's.

3. Keep the Credit Card Charges & Debt to a Minimum

Take it from someone that has been there before, if you don't take the time to prudently budget out your income and expenses every month you are bound to slip up and overspend as a parent. For me, the issue was always saying no (my wife is thankfully a little better at doing that), whether it's on YouTube or on tv, our children are constantly being marketed to. Throw in their school friends showing off toys in the mix and you will find out just how many toys they "need" to have. And that is just the discretionary spending part - don't forget about food, clothing, classes, lessons, sports, etc. This is why it's really crucial to budget in the long term, I learned this the hard way. After thoughtlessly making multiples charges on our credit cards one month I had multiple balances on our credit cards (I had always paid off the statement balance at the end of the month before this). That first month is where everything started and just after one month of interest and neglecting the full balances on my cards - I had accrued a few thousand dollars in credit card debt. Since I wasn't able to pay it all off at the time, interest kept accruing and only 6 months down the road I was at a point where I wasn't able to reasonably manage my finances anymore. Thankfully, I reached out to a debt relief company which helped me pay down my credit card debt and it's something I can say is well in my past.

In closing, sometimes it is best to just speak with your kids and explain that some things may not be in your budget. Hope these tips were helpful in helping everyone keep budget and prioritize what is and what isn't important when raising a child!