So you have decided to tie the knot, and both of you love children and can’t wait to have some of your own. Congratulations!
Whether having a baby or adopting a child, there is no denying that adjustments will have to be made. Ask any financial expert and they will all say that there is no such thing as “planning too early”.
Do not get caught up in the trap of having to sacrifice your own long term goals to pay for your children’s education.
Your own financial security is especially important to your child. You don’t want to burden your child with your future health care or housing expenses.
Does your health policy allow you to add children in it’s coverage? Will there be any changes to how you manage your life insurance when a child depends on your income? Is your disability insurance sufficient? Will your child still receive quality education should anything happen to you?
Check the number of allowances in your income tax form as most employers allow changes outside the open enrollment period for changes in family status.
Sign up for or increase flexible spending account amounts. Additionally, some banks offer investment plans specifically tailored for the education of your future children.
Get information about available bank loans and scholarships. Certain states like Selangor and Terengganu offer scholarships for children born and raised there, provided the parents are from the same residence as well.
With the amount of money available to students through grants, aid and scholarships, students have a greater chance of making up the difference for their college experience than you do in your retirement savings plan.