The news that a child is on the way is an exciting time in life. But for parents who are under financial pressure, the joyful news is often clouded by worry. In addition to the cost of medical care and birth-related expenses, new parents often have to find funds to purchase expensive formula, diapers, and childcare, if both parents are working outside the home. If you are about to become parents for the first time and want to ensure that your child is raised in a more financially secure home, the following tips can help you improve your financial situation for your growing family. 

Begin tracking every purchase and expenditure

Couples who have not previously been diligent about using a written budget may be spending their money in ways that will not help them become financially secure. Even simple purchases, such as coffee, movie tickets, and fast food, can add up quickly and make it more difficult to pay bills on time and set aside money for saving and investing. 

The best way to avoid this type of frivolous spending is to make a determined effort to make a written budget and use it as a firm guide for handling the household income. As part of this commitment to budget, couples should consider making a note of each expenditure or perhaps using a phone app to track daily spending. Doing this will help couples recognize problem spending and learn to replace it with smarter habits.

Make savings part of your plan

Households that are under financial pressure or just learning to budget may think they can not afford to save money until they are in a better financial place. But if no savings are available, then every unexpected expense will force them to rely on credit cards or loans, which will only increase the family's debt load and financial difficulties.

Instead, couples should strive to save a few dollars for emergencies out of each paycheck. As they pay off debt and become more financially stable, the amount of they are able to save will become more substantial.  

Develop a financial plan that will grow along with your family

Part of every parent's responsibility is to help provide for their child until they are an adult so it is important that new parent's take steps to make this happen. Since every family's situation is unique, sitting down with a reputable financial planner is the best way to decide what arrangements you will need to make and develop a viable plan to reach each financial goal.  

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