Babies, Budgets, and Beyond: How to Get Your Finances in Order for Your Growing Family

When you’re growing your family, it can be an exciting yet stressful time. Luckily, there are strategies, programs, and tools at your disposal to help you along the way. 

Brush Up Your Budgeting Skills

If you’re not budgeting yet, we recommend you start, especially as a parent. It’s hard to reach any specific financial goals without knowing how much is coming in and where the money is going.

Tools like those included in the Payactiv app and Payactiv Visa^® Card* can help make the process easier. Through these resources, you can analyze past spending behaviors to help you build realistic strategies for spending and saving in the future, create automated savings goals, and work 1:1 with a financial coach.

Save on Baby Gear

There is a lot of pressure on new parents to get the latest baby gear available. If you’re a first-time parent, know that you probably don’t need all of it, especially if you can’t afford it.

Your baby will need a safe place to sleep, a car seat for transit, diapers, clothes, and food. Anything outside of that is nice to have but not necessarily a ‘need.’

Cribs, car seats, and baby formula are especially important to buy new, but other items like clothing and new toys can be found for discounted prices if you visit resale stores and shop around the holidays. 

For other gear, health insurance companies will sometimes run incentive programs for attending all your prenatal appointments. If you meet the requirements, they might issue a ‘reward,’ such as a new infant car seat or playpen. 

Make Sure You Have the Basics Covered

Formula is something you shouldn’t buy second-hand. But, we understand that it can be expensive. An under-utilized program called WIC can help low and middle-income mothers and children get free access to the food they need, including formula. Breastfeeding mothers can also use WIC to get healthy foods for themselves.

You can find more information about WIC by contacting your state welfare office.

Get on a Waitlist for Childcare Services ASAP

One of the largest expenses as a new parent is childcare. There is currently a shortage of childcare workers in the U.S., so the long waitlists to secure childcare have gotten even longer since the pandemic. 

Start prioritizing finding and joining waitlists for childcare as soon as possible. You can also check out programs that can help you secure free childcare or vouchers to pay for childcare. If you’re a college student, there’s usually a federally-funded program on campus, but spots fill up quickly. 

There are also several programs run at the state level that can help you get financial assistance paying for care while you’re at work. 

All of these programs also often come with waitlists, so fill out your application today. 

Look Into College Savings Options

The only expense that will rival the cost of childcare is the cost of college. That said, don’t let this overwhelming savings goal overwhelm you.

Even if you can only save small amounts of money in a 529 college savings account, those savings still make it more likely that your child will attend and finish school. Studies show that even having anywhere between $1 and $499 makes it three times more likely that your child will follow through with going to college. 

Automate Savings for Future Expenses

There will inevitably be goals you have to save for over a long period of time, from childcare and beyond. You can use tools like SmartSave, offered through the Payactiv App , to plan for these goals and set up automatic transfers to savings.

By ensuring you have funds for future expenses, you won’t find yourself strapped for cash when it comes time to make important purchases or be ready for an emergency.

Get Free 1:1 Financial Coaching to Navigate the Finances of Parenthood

Through the Payactiv app, you have free access to KOFE financial coaches. Create personalized strategies to reach your goals through budgeting, improving your credit score, and setting up savings goals for college or childcare costs. 

The Bottom Line

Having a child is an exciting responsibility and there are a variety of resources available to help you along the way. Payactiv can make the journey easier with tools like financial coaching and the Payactiv Visa Card. Start saving and budgeting today to ensure your financial health grows alongside your family.

* The Payactiv Visa Prepaid Card is issued by Central Bank of Kansas City, Member FDIC, pursuant to a license from Visa U.S.A. Inc. Certain fees, terms, and conditions are associated with the approval, maintenance, and use of the Card. You should consult your Cardholder Agreement and the Fee Schedule at payactiv.com/card411. If you have questions regarding the Card or such fees, terms, and conditions, you can contact us toll free at 1 (877) 747-5862, 24 hours a day, 7 days a week.

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