As an adult, taking care of your finances is a primary concern. When you have a family, then that concern takes on even more importance, as you are now responsible for more than just yourself. It is down to you to take care of those children and provide for them as a family, which means taking a hard look at how you are taking care of your finances.
Raising children can be expensive. Your grocery bill increases the moment they are born, and it only seems to get worse the more they eat and drink. Will you be paying for daycare at some point? Health insurance will now include more dependents and may cost more. If you want to start planning for the future, you may open bank accounts for them and start putting in money. The reality is that there is more to consider in terms of money once you have children.
Fortunately, there are plenty of ways to improve your financial outlook. Whether it means generating additional income or reducing your expenses, these tips can help you set your family up for success and you’ll wish you had known about them years ago.
Start a Side Hustle
Even if you are a stay-at-home mom that is fully committed to being with your kids, you can still help generate some additional income for the family. There are lots of side hustles that are perfect for stay-at-home moms and don’t require a lot of effort or travel. You could offer to babysit other kids at your house and run a mini-daycare. There are plenty of data entry jobs that can be done remotely with a laptop and a decent wifi connection as well. You could also become a virtual assistant for an executive remotely, helping them manage their calendar and appointments. Many of these roles can be done from the comfort of your home while you are keeping an eye on the kids or while they are at school to earn some extra income for the family.
Add Children as Authorized Users on Credit Cards
What is a three-digit number that seems to control your life as an adult? It’s time to talk about credit scores. From the moment you open your first credit account, whether it is a credit card or a first car loan, you have a credit score that affects lending options and available interest rates. A low score can hold you back while a great score can give you access to many financial privileges that save you money. You might be wondering if it is possible to get your children started early on in building up a good credit score. Fortunately, it is! All you have to do is add your child as an authorized user on a credit card. Many companies allow anyone to be added, though some may have minimum age limits. This action opens a credit account for the child, and credit history is one of the main factors that determine a score, so the sooner the better. As you use the card and pay what is owed on time, their credit score will improve long before they are even making financial decisions.
Sometimes life can be unpredictable. Circumstances may arise that you are not ready for, resulting in expenses that cannot be covered by what is in your checking account. Rather than face the ridiculous overdraft charges or late fees that may result from unexpected expenses, you should see if cash advances from a bank would cover the cost. That is a very easy way to get the cash you need. This practice is essentially a miniature line of credit that can be obtained quickly to cover an expense, especially when your current account has insufficient funds. These small-dollar loans can help you overcome tight money situations that come up to prevent larger fees from your bank.
Open a High-Yield Bank Account
If you have the funds needed to cover initial fees, a high-yield bank account is a perfect way to generate some extra income without having to do any work. Many standard checking and savings accounts have low-interest rates that will add a little bit of value over time to what you have in the bank. However, there are options for high-yield bank accounts out there if you are willing to find them. These accounts have much higher interest rates so that the money you have in them can earn more than a typical account. This simple change could make a bigger difference than you would expect and requires no effort once it is set up.
Knowledge is Key
Worrying about the financial status of your family can be stressful. However, taking some of these steps can help your family earn a little extra income or increase savings, setting them up for a better future. Maybe you have never heard of some of these tips before. That is why it is so important to research financial health strategies. How can you improve your outlook if you never seek to understand best practices to do so? Hopefully, these tips can give you some peace of mind about the financial future of your family.