Adding a child to your family is the start of an exciting adventure, but it can also put a strain on your checking account. In addition to baby clothes and bassinets, you’ll also have to shell out money for diapers, formula, and doctor’s visits, which can make setting a firm budget seem impossible. Below are a few tips for reducing the financial chaos having a baby can bring.

4 Budgeting Tips for New Parents

1. Build an Emergency Fund

For new parents, every day can feel like an emergency, but some are more expensive than others. Setting aside a small emergency fund in a separate savings account will give you the resources to cover doctor visits and other unexpected expenses without going into debt.

2. Shrink Your Budget in Advance

Not only do your expenses increase after bringing home a baby, but your income will likely shrink, at least temporarily. Before the baby is born, try to figure out how much you’ll be making and just live on that for a few months. This will give you valuable practice budgeting and free up money to build up your savings.

3. Track Your Spending

Tracking your spending is always a valuable budget-building tool, identifying corners you can cut to reduce expenses. Many apps and programs link directly to your checking account, making it easier to see where your money goes every month.

4. Consider Switching Health Insurance Plans

Your health insurance may have been ideal before your child was born, but babies have extensive medical needs. Fortunately, having a child is considered a qualifying event that allows you to switch to another plan if your current out-of-pocket expenses are too high.

As a trusted local financial institution, Magnolia Bank offers checking accounts, savings vehicles, and other high-quality services, along with a friendly, personal touch. They’ve been serving families throughout Elizabethtown, Hodgenville, and Magnolia, KY, for over a century, building a reputation for giving everyone the individual attention they deserve. Visit their website for more on their savings and checking accounts, or call (270) 358-3183 to reach their branch in Hodgenville. To contact their Elizabethtown location, call (270) 765-4072 today.