While having a family remains one of life’s most rewarding experiences, it can also be one of the most financially challenging.
From having children to hosting your loved ones during Christmas, the cost of family life can spiral quickly and considerably at any given time. This means that you need to be prepared for the unexpected costs that are associated with raising a family, so that you can manage your finances and cope with whatever life throws at you!
In this post, we’ll consider three of the most unexpected costs and ask what you can do avoid them.
1. Consider the Cost of Buying a Pram and Transport System
If you’re expecting your first child, you probably know that you’ll need to buy a number of basic items such as a pram.
You may not appreciate the full cost of buying a pram, however, or the need to invest in a travel system that also enables you to courier your child in a car.
In addition to the pram, for example, you’ll also need to buy important accessories like a foot muff and a rain cover. Similarly, you’ll need an accompanying car seat, so your new-born child can be transported safely both on foot and on the road.
2. Appraise the Cost of Living and the Cost of Christmas
If you haven’t noticed, the rate of headline inflation in the UK has soared consistently in recent times and peaked at a five-year high of 3%. This has increased the cost of living and buying groceries, while real wages have stagnated across the board.
With household incomes having been squeezed nationwide, you’ll therefore need to adopt a proactive and creative mind-set if you’re to make the most of your earnings in the current economic climate.
This is particularly true at Christmas, which bore the brunt of rising inflation last year. After all, the average cost of feeding eight people on Christmas Day rose by 16% in 2017, highlighting the need to budget for such an increase and seek out ways of reducing these costs.
3. Save for Worst-case Scenarios Such as Divorce
I’m a big believer in positive thinking, but not at the expense of practicality or sensible financial planning. This is particularly important for older families, or those that have experienced significant relationship issues in the past.
In such instances, you’ll need to think with a clear mind and create a financial contingency to support divorce or long-term separation. This will help to cover the cost of legal fees and professional conflict resolution when partnering with a firm, as you look to create amicable terms and create an agreement that leaves all parties satisfied.
Remember, divorce can be an extremely costly process, and one that demand significant financial and emotional investment if you’re to complete it successfully.