A first-time Massachusetts mother is the one who has just given birth to or adopted her first child. There’s nothing that can prepare you quite enough for this change in your life, regardless of how many months or even years the arrival of your child has been in planning, how many books on parenting you’ve read, or how much advice you got from those who are already parents and whose expertise could understandably be regarded as valuable. The truth is that the reality of motherhood will constantly clash with your notions of what it should be and that you’ll often find yourself dealing with unexpected challenges and feeling like a fish out of water.
Your priorities will likely change overnight, and your child’s protection and well-being will become paramount for you. This means that you’ll get all dangerous objects out of their reach. Put locks on drawers and baby-proof your home so there’s no risk of injury. However, it’s crucial to baby-proof your finances as well to ensure a bright and wholesome future for your child. This is no simple task given the steep living costs that have been making life difficult for people from all over the globe over the past few years, but doing something in this regard is nonetheless an essential aspect of your child’s future.
Limit spending
Recent data shows that the average middle-income US family will spend approximately $310,605 to raise a child born in 2015 until 2032 when they will be seventeen. Housing makes up the most significant portion of those costs, being 33% of the total; food comes in second at 25%, with childcare taking anywhere between 7% and 23% of the budget. Planning for college is another extra expense that you should start taking into account early, as the costs can be quite elevated. Depending on where you live, whether you require daycare, and whether you’re saving aggressively for university or have taken a more relaxed approach, the costs can be significantly lower or much higher.
Since there are now additional factors to take into account, you must be extra careful with your spending. This doesn’t mean that you’ll never again be able to buy something for yourself, but if you’re used to splurging frequently, it might be time to put that habit on hold for a while. Create a budget that allows you to live comfortably and ensures that you have funds that can go into your savings without neglecting the essentials.
Saving
How much you put in savings is an integral part of your budget. Even if it might seem like it’s not much, remember to be patient and give it time. Even smaller sums add up over time, and the final result might take you by surprise. Some decide that it is best for them to invest, but starting a portfolio can seem daunting and intimidating if you’re not accustomed to this type of endeavor. The likelihood of losing more money than you gain keeps many reluctant to give it a try. Binance data shows that cryptocurrencies will record good performance throughout 2024 and 2025, but there are also stocks, bonds, and even physical assets to invest in. If you choose to start a portfolio in order to drive revenue, keep in mind that your holdings should be as diversified as possible. That way, if one asset fails, you still have the certainty that you can rely on the others.
Saving for college is something that keeps many parents up at night. It might feel like a long way into the future, but time might pass faster than you expect, and with growing costs to take into account, if you want to make a real contribution to their tuition, there’s no better time to start saving than right now. The 529 plan is one of the most popular choices. It is a tax-advantaged account that is typically used to pay for education costs, mainly college but also apprenticeships or K-12. Everything used for qualified educational expenses is tax-free as well.
Take care of yourself
The future is important, but you mustn’t become so invested in it that you forget to take care of yourself in the present. If you don’t manage to save enough for tuition, there’s always the alternative of resorting to grants, low-interest loans, or scholarships. The caveat is that there are no such funding plans for retirement. If you’re not sure what would work best for you, get in touch with a financial professional who will help you access the tools you need.
This way, you can build your savings so that you can maintain your lifestyle after retirement as well. Creating a 401(k) also means that your children won’t have to worry about taking care of you later in life, something that would place additional strain on their finances and make it more challenging for them to make ends meet. Your own financial security will, therefore, benefit your children as well. Very often, parents forget that to take care of their children properly, they need to look after themselves as well.
Moms, in particular, can sometimes even feel selfish or like they’ve failed their children if they do something for themselves as well. But putting things into perspective and looking at the situation objectively will let you see that investing in yourself is the way to go.
The bottom line
When you become a mother, you can start looking at your finances from a more holistic perspective and notice the interconnectedness that makes up this often vague and nebulous concept. Now you have the chance to go more in-depth and have some genuine conversations about your family’s long-term well-being and plans. From savings to budgeting and from making plans for both your kid’s college days and your retirement from work, there are many different things to take into account.
Keeping your goals in mind will help you push forward and allow you to see real progress. Keep in mind that anything you save, no matter how small and insignificant it might seem, takes you a step closer to the finish line.
Should you be in the midst of a divorce or paternity case, contact the Law Offices of Renee Lazar at 978-844-4095 to schedule a FREE one hour no obligation consultation.
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