Being a parent is an incredible joy, but it also comes with a lot of responsibilities. One of those responsibilities is ensuring that your family has enough money to cover unexpected expenses that may arise. From medical bills to unanticipated housing costs, there are many things that can catch a family off guard if they’re not prepared. Here are five surprise expenses every family with kids should put money aside for.
Education Costs
Having children means investing in their futures and that includes the cost of education. You’ll want to start saving as early as possible for college tuition or other educational activities. College tuition continues to rise each year, so it pays to start saving now so you won’t be taken by surprise when it’s time for your child to go off to school.
It’s a good idea to start saving for your child’s education costs as early as possible. Depending on the type of school you wish to send them to and location, educational costs can vary significantly. For example, public universities are usually much more affordable than private institutions. According to statistics, the average parent should save $200 per month for each child toward college tuition over the course of 18 years. Different strategies, such as 529 plans and mutual funds, can also help you achieve your saving goals. Ultimately, the amount you should save depends on your individual circumstances and goals. So, it’s best to do some research and speak with a financial advisor before making any decisions.
Medical Emergencies and Illnesses Adds to Family Expenses
No matter how healthy your kids are, there will always be times when they need medical attention. It can be quite expensive depending on what type of care they require. Investing in health insurance is a great way to prepare yourself financially for potential medical bills while also giving yourself the peace of mind that comes with knowing your family is covered medically if something happens unexpectedly.
Finding the best health insurance plan for your family can be an intimidating process. However, it is worth the effort to ensure that you and your loved ones are covered in case of medical emergencies. Start by doing some research into the different types of plans available, such as HMOs, PPOs, or high-deductible plans. Compare the benefits offered by each to determine which one best meets your family’s needs. Don’t forget to take into account factors such as cost, coverage limits, and out-of-pocket costs. If possible, speak with a tax professional or financial advisor to get an expert opinion on which plan would be most beneficial for you and your family.
Sports and Extracurricular Activities
It seems like there are endless extracurricular activities these days. All these can add up quickly if parents aren’t careful about budgeting ahead of time. Setting aside money specifically for these activities helps ensure that your child has all the opportunities they need without stretching your bank account too thin in the process.
Home Repairs
One of the unexpected expenses most families with kids face at some point or another are home repairs due to normal wear and tear or damage caused by the kids themselves. It happens! Investing in home warranty plans that include ductwork repairs, preventative HVAC maintenance, and even yearly inspections will help protect you from being blindsided by repair costs. This can save you hundreds or even thousands of dollars down the line depending on the type of coverage you invest in, and what repairs need done around the house.
Vacation Funds for Family Expenses
Believe it or not, vacation expenses can sneak up on you if you’re not prepared! Between booking flights, hotels, meals, tours, and activities, the cost adds up quickly. Thus, it pays to plan ahead and set aside money specifically for vacations so you don’t end up overspending once it’s time for your family getaway.
If you’re looking to save up money for a family vacation, it’s important to start early. Start by setting aside a specific amount of money each month into an emergency fund that is strictly designated for vacations. You can also look into ways to reduce the cost of your vacation. You can do so by booking flights in advance or taking advantage of package deals. Additionally, consider ways to make the most of your money by looking for budget-friendly activities and attractions in the area you’re visiting. Finally, be sure to research any potential discounts or coupons that can help you save even more on accommodations, meals, tickets, and other vacation expenses.
Pet Care
Having pets is an important part of many families’ lives these days. However, pet care can also be expensive, especially when emergency medical attention is needed. Again, health insurance for pets will come in handy here. Set aside some funds every month specifically for pet care so you have enough saved up should any emergency veterinary visits occur down the line.
While having children brings along its own unique set of challenges, one thing parents should always keep in mind is setting aside enough money each month to cover unexpected family expenses. If you prepare ahead of time and set aside a specific amount each month towards potential emergencies, you can be rest assured that your finances are secure no matter what life throws your way.
