As a parent, it can be challenging to know how to plan for your future or prioritize your finances. It’s hard to focus on future goals when you’re up every night with your little one and struggling to make it through the workday.
If you’re used to living without a financial plan and aren’t sure how to prepare your finances for your family, start with a clear household budget. Determine your monthly income and expenses, as well as any outstanding loans you may have.
If you’re paying for child care for your little one while you’re at work, you may be eligible for a Child and Dependent Care Credit that can cover 35 percent of your child care expenses. You can claim this on your income tax.
Create an emergency fund and put some savings into this account. Your emergency fund should be around three months of living expenses so that if anything happens to you or your family, you’ll have enough to cover a job loss or any unexpected bills for a couple of months.