Essential financial steps to take when expecting a child

Welcoming a new baby into your life is an exciting and life-changing event, but it also comes with new financial responsibilities. Preparing your finances in advance will help ease the transition and ensure you're ready for the added costs of raising a child. 

1. Review Your Budget

Rework Your Monthly Budget: Start by evaluating your current spending and adjusting your budget to account for baby-related expenses. New parents typically face added costs for things like diapers, baby formula, clothing, and medical bills. Tracking your income and expenses will help you plan for these new costs.

Identify Areas to Cut Back: Before the baby arrives, look for opportunities to cut back on discretionary spending (e.g., dining out, entertainment, shopping) to help offset new expenses.

2. Start Saving for Baby-Related Costs

Estimate Baby-Related Expenses: The cost of a baby varies depending on location, lifestyle, and choice of baby products, but typical expenses include:

Maternity and delivery costs

Baby gear (crib, stroller, car seat, etc.)

Diapers, formula, and baby food

Medical bills and health insurance

Childcare (if applicable)

Set Up a Baby Fund: Create a separate savings account for baby-related expenses. Even if you can't save a large amount, starting early and saving consistently will help you avoid a financial shock when the baby arrives.

Consider an Emergency Fund: Ideally, you should have three to six months' worth of living expenses saved up in case of unexpected situations, like job loss or medical emergencies.

3. Review Health Insurance Coverage

Understand Your Coverage: Make sure you understand your health insurance plan, including what’s covered for prenatal care, delivery, and postnatal care. Health insurance can be one of the largest expenses during pregnancy and childbirth.

Add Your Baby to Your Insurance: Once the baby is born, you'll need to add them to your health insurance plan. Be aware of the time frame for making this change, as there are typically 30-60 days after birth to update your policy.

Check for Additional Costs: Some plans might have co-pays, deductibles, or limits on certain services. If you haven’t already, calculate how much you'll need to pay out-of-pocket for any pregnancy-related medical expenses.

4. Review Your Life Insurance

Consider Increasing Coverage: Life insurance is an important part of any family’s financial safety net. If you don’t already have a life insurance policy, now is the time to consider getting one. If you already have coverage, it may be a good idea to increase your policy's value to reflect the additional responsibility of a child.

Choose a Term Life Policy: A term life insurance policy can be an affordable option for young families. You can choose a policy with a length that corresponds with your child's needs (e.g., 20 or 30 years).

5. Prepare for Parental Leave

Understand Your Employer’s Leave Policy: Research your company’s parental leave policies. Some employers provide paid leave, while others offer unpaid leave or short-term disability benefits for new parents. Know your rights and plan accordingly.

Save for Time Off: If your company doesn’t offer paid parental leave or the leave is limited, it’s essential to budget for any lost income during your time off. Start saving in advance to cover the gap in income while you're on leave.

Consider Alternative Income Sources: If your paid leave is short or unpaid, consider how you might generate income. For example, some people turn to freelance work or part-time side gigs for extra cash.

6. Reevaluate Your Housing and Living Arrangements

Assess Your Living Space: A baby may require you to reassess your housing situation. Do you need more space (e.g. a larger apartment or even a house) for a nursery or play area? If you’re renting, consider whether your current space is suitable for a growing family. If you own your home, consider the costs of home improvements or baby-proofing.

Factor in Additional Housing Costs: If you are planning to move or remodel, account for these costs in your budget, including rent or mortgage payments, utilities, and any changes to your home.

7. Start Thinking About Childcare Options

Research Childcare Providers: If both parents plan to return to work after the baby is born, you’ll need to arrange childcare. Research and go on a waiting list for daycare centres, nannies, and other options well in advance to ensure availability and affordability.

Consider the Costs: Childcare can be one of the most expensive things to pay for working parents, especially in the first few years. Factor in these costs and decide whether one parent could and would stay home full-time, whether you'll work part-time, or if you'll need to budget for full-time childcare.

Evaluate Flexible Work Options: Some companies offer flexible working hours, remote work, or on-site childcare. Explore these options with your employer to see if you can minimize the need for external childcare.

8. Build a Will and Estate Plan

Create a Will: As parents, one of the most important financial steps you can take is to create a will. This legal document ensures your child is cared for in the event of an unexpected tragedy and helps manage your assets according to your wishes.

Designate Guardianship: In your will, make sure to designate a legal guardian for your child—someone who will take care of your child if you and your partner are no longer able to.

Review Beneficiaries: Update the beneficiaries on your life insurance, retirement accounts, and any other assets including your child or partner.

9. Start Thinking About Saving for College

Open a 529 Plan: While it may seem early, it’s never too soon to start saving for your child’s future education. A 529 College Savings Plan allows you to invest money that grows tax-free, which can later be withdrawn for qualified education expenses.

Set Small Savings Goals: Even if you can only contribute small amounts now, starting early will make a big difference in the long run due to compound growth.

10. Track Your Spending and Cut Unnecessary Costs

Reevaluate Subscriptions and Memberships: Evaluate your current subscriptions, memberships, and other recurring expenses. You may have memberships or services you don’t need, such as premium cable channels or gym memberships, which could be paused or cancelled to free up funds.

Plan for the “New Normal”: Once your baby arrives, your day-to-day spending may change, and you might find yourself spending more on baby gear, groceries, or other essentials. Keep track of these shifts and adjust your budget accordingly.

11. Prepare for Post-Baby Expenses

Build a Post-Baby Budget: In addition to your baby fund, make sure to budget for any unexpected post-baby expenses like:

Postpartum care (for mom)

Newborn care and medical expenses (including check-ups and vaccinations)

Baby clothing (your baby will grow quickly, and you’ll need to buy new clothes regularly but second-hand is a great option to save money)

Consider Babyproofing and Home Safety: You’ll likely need to baby-proof your home as your child grows. These one-time costs (like outlet covers, cabinet locks, and safety gates) should be factored into your budget as well.

While preparing financially for a new baby can seem overwhelming, taking proactive steps can reduce stress and ensure that you’re ready for the financial changes ahead. By creating a budget, saving for baby-related expenses, reviewing your insurance, and planning for future costs like childcare and education, you can build a strong financial foundation for your growing family.

How to save on back-to-school supplies: Tips for purchasing school supplies without breaking the bank

  

 

Back-to-school season can be expensive, but with a good plan in place, you can save a significant amount on supplies. Here I have compiled a list of some smart shopping tips to help you keep your costs low while still getting everything your child needs.

1. Make a list and stick to it

Create a detailed list: Before you head to the store or start shopping online, make a list of exactly what your child needs. Schools often provide a supply list for each grade, so use that as your guide. This will help you avoid impulse buys and ensure you're only getting what's necessary.

Check what you already have: Take inventory of supplies you already own—like notebooks, binders, or pens—from the previous year. You can reuse items that are still in good condition.

2. Shop early (or late)

Early bird shopping: Sales for back-to-school items often start early. Shopping early gives you the advantage of avoiding the last-minute rush and taking advantage of discounts.

Post-back-to-school sales: After the initial rush, stores often discount remaining supplies to clear out inventory. You might find great deals closer to when school starts especially for items like notebooks, pens, and backpacks.

3. Take advantage of sales and coupons

Sales events: Keep an eye out for sales events, especially the ones labelled “back-to-school” or “tax-free weekends.” These can offer significant savings on common school supplies.

Use coupons: Many retailers offer coupons through apps or websites like Honey, Rakuten, or RetailMeNot. Sign up for emails or follow the social media accounts of stores that typically offer good deals on school supplies.

Store loyalty programs: Some stores, like Staples or Office Depot, have loyalty programs that offer discounts or rewards for back-to-school shopping.

4. Buy in bulk

Buy in bulk for non-perishable items: Items like pens, pencils, and markers can be purchased in bulk for long-term savings. Warehouse stores like Costco or Sam's Club offer bulk packages of supplies that cost less per unit.

Split bulk items with friends or neighbors: If you don’t want to buy a huge quantity, team up with other parents in your neighbourhood or school and split bulk purchases.

5. Check discount retailers

Dollar stores: Dollar stores are an excellent resource for basic supplies like crayons, notebooks, and scissors. The quality may vary, but for many items, it’s a great option to save money.

Big-box retailers: Stores like Walmart, Target, and Amazon often have great prices on supplies. Compare prices to see where you can find the best deals.

Thrift stores: Consider buying gently used items, like backpacks, binders, or even clothing. Many thrift stores offer items in great condition at a fraction of the price.

6. Shop online for deals

Use price comparison tools: Websites like Google Shopping, PriceGrabber, or CamelCamelCamel (for Amazon items) can help you compare prices across different retailers to find the best deal.

Amazon prime day and black friday: If you miss the early back-to-school sales, keep an eye out for major discount days like Amazon Prime Day or Black Friday. These events often feature steep discounts on school supplies.

7. Avoid name brands (unless necessary)

Generic or store brands: Many store-brand school supplies are just as good as name-brand items but at a fraction of the price. Unless a specific brand is required (like for certain technology), opt for store brands when possible.

Consider alternative brands: For items like backpacks, lunch boxes, or binders, check for no-name alternatives that are similar in quality but more affordable.

8. Use student discounts

College and high school discounts: If you have older students in high school or college, they may be eligible for discounts at certain stores, especially for tech purchases or clothing. Websites like UNiDAYS offer student discounts for popular retailers.

Teacher discounts: If you're a teacher or know a teacher, some retailers offer back-to-school discounts for educators. Make sure to take advantage of those if applicable.

9. Consider eco-friendly alternatives

Eco-friendly supplies: If you're looking for sustainable options, consider items made from recycled materials, like notebooks or folders. Many eco-friendly supplies are comparable in price to standard items, and some stores even offer discounts for purchasing sustainable goods.

Reusable items: Instead of buying disposable products opt for reusable alternatives like refillable water bottles or dry-erase boards that can be used year after year.

10. Check for tax-free shopping days

Many states hold tax-free weekends or back-to-school shopping holidays, where sales tax is waived on certain items, including school supplies. Research your state's tax-free shopping dates to save even more.

11. Be mindful of the “Bigger is Better” trap

Sometimes larger packages or higher-end products are marketed as a better deal, but they may not be necessary. For example, a fancy, high-priced binder might look appealing, but a simple, less expensive one may meet the needs just as well.

12. Take advantage of freebies

Some companies or stores offer free items or samples during back-to-school season, especially if you sign up for newsletters or become a member of loyalty programs. Keep an eye out for giveaways, especially for smaller supplies like pens, pencils, and erasers.

Bonus: Get creative with DIY supplies

Homemade supplies: If you're crafty, consider making some school supplies yourself! You can personalize notebooks, create custom bookmarks, or even make DIY pencil cases from old fabric. It’s a fun way to save money and get your child involved in the back-to-school process.

By being strategic and looking for deals in various places, you can save money on school supplies while still getting everything your child needs for the school year. 

Planning ahead and using these smart shopping tips will help you avoid overspending while ensuring your child is prepared for success!

Maximizing Your Earnings on Gig Economy Platforms

The gig economy has exploded in recent years, with platforms like Uber, TaskRabbit, Fiverr, and many others offering very flexible ways to earn money. Whether you are driving, completing tasks, or providing specialized services online, these platforms provide opportunities for side income or even full-time work. To maximize your earnings, you need to adopt strategies that optimize your time, effort, and skills. 

Here’s how you can make the most of gig economy platforms:

1. Choose the right platform for your skills and schedule: Each gig economy platform has its own strengths, and choosing the right one based on your skills, goals, and availability can set you up for success.

Uber/Lyft: Best for people with a car who want to drive part-time or full-time.

TaskRabbit: Ideal if you enjoy hands-on tasks like furniture assembly, moving, or running errands.

Fiverr: Perfect for digital services such as graphic design, writing, web development, or social media management.

Upwork: If you have professional services like programming, marketing, or consulting, Upwork is a great option.

Instacart/delivery platforms (DoorDash, Postmates): Great if you prefer delivering food and groceries.

Tip: If you’re starting out, consider testing multiple platforms to see which one fits your schedule and skillset best. You can diversify and switch platforms depending on demand and opportunities.

2. Optimize your availability and scheduling: To maximize your earnings, it’s important to know when the demand is highest and adjust your schedule accordingly.

Ride-sharing (Uber/Lyft): Drive during peak hours (rush hours, weekends, holidays, and special events). This is when surge pricing kicks in, and you can earn more per ride.

TaskRabbit: Set your hours when demand is high in your area (like weekends or evenings). You can also adjust your hourly rate based on the time of day (higher rates during peak times).

Fiverr/Upwork: Offer your services consistently and be quick to respond to inquiries. Clients value responsiveness and quick turnaround times, so being available during business hours will help you win more projects.

Delivery platforms: In general, evenings and weekends are the best times to deliver food. Also, keep an eye out for special bonuses or peak pay offered by platforms.

Tip: Set your schedule based on your personal availability but also aim to work when the platform is experiencing the most activity (surge times, weekends, or special events).

3. Focus on quality and customer satisfaction: The gig economy is highly competitive, and maintaining a reputation for high-quality service can lead to repeat customers, tips, and positive reviews—all of which contribute to higher earnings.

Uber/Lyft: Focus on offering a smooth, pleasant ride. Keep your car clean, be polite, and provide a safe experience. High ratings can help you get more rides.

TaskRabbit: Provide efficient, reliable, and courteous service. If you go above and beyond in completing tasks, clients may leave tips or rehire you for more jobs.

Fiverr: Deliver quality work and ensure the client is satisfied. Positive reviews and high ratings will attract more clients. Don’t be afraid to ask for feedback after completing a task.

Upwork: Build strong client relationships by meeting deadlines, communicating clearly, and delivering professional work. Building long-term relationships with clients can lead to more steady income.

Tip: The better your customer reviews, the more visible your profile will be, and the more likely you are to attract high-paying gigs. Always strive to go the extra mile.

4. Maximize efficiency and minimize costs: Being efficient can significantly increase your earnings. The faster and smarter you work, the more jobs you can take on, and the more money you can make.

Ride-sharing: Use a navigation app like Google Maps or Waze to avoid traffic and optimize your route. Take advantage of deadhead driving—driving without a passenger—by positioning yourself in high-demand areas.

TaskRabbit: Group similar tasks together to reduce commute time and maximize your hours. If you’re going to one location, see if you can pick up another task nearby.

Fiverr: Bundle services (e.g., offering a website design with social media graphics) to increase your average order value. Automate parts of your work (e.g., templates, quick responses, or automated deliverables) to handle more clients.

Delivery platforms: Consolidate deliveries if possible (taking multiple orders at once) to maximize the number of deliveries per hour. Also, check for “hot spots” where multiple restaurants and orders are clustered together.

Tip: Time is money, so work smart by using tools and strategies that reduce wasted time and increase productivity.

5. Diversify your offerings and pricing: Diversifying your services and pricing strategies can help you earn more and appeal to a wider audience.

Uber/Lyft: Drive for multiple ride-sharing services (e.g., Uber and Lyft) simultaneously to increase your chances of getting rides.

TaskRabbit: If you specialize in furniture assembly, consider adding related services, such as installation or moving. Offering a range of services can help you stand out from others.

Fiverr: Offer tiered pricing for different levels of service (e.g., basic, standard, and premium) to cater to a broader audience. You can also offer “add-ons” like expedited delivery or additional revisions.

Upwork: Offer niche services or specialize in a particular industry to attract higher-paying clients who need expertise.

Tip: Offering a range of services and flexible pricing can help you secure more gigs and increase your income per job.

6. Leverage bonuses and incentives: Most gig economy platforms offer bonuses or incentives for hitting specific goals or milestones. Take full advantage of these to boost your earnings.

Uber/Lyft: Look out for driver bonuses, guaranteed earnings, or referral bonuses for bringing new drivers onto the platform. Uber also offers "quest" promotions, which give bonuses for completing a certain number of rides in a set period.

TaskRabbit: Some platforms offer referral bonuses for bringing new workers on board or incentives for completing a certain number of tasks in a given timeframe.

Fiverr/Upwork: Platforms sometimes offer promotional boosts, especially during high-demand seasons. Take advantage of promotional offers where your profile may be highlighted or advertised for a fee.

Tip: Regularly check your platform for new bonuses or incentives and set goals to hit those targets to maximize your income.

7. Keep track of your earnings and expenses: One of the benefits of gig work is the ability to track your income and expenses easily. It’s important to manage your earnings, deductions, and taxes properly.

Track expenses: Keep detailed records of work-related expenses (gas, equipment, maintenance, etc.), as these can often be deducted from your taxes. Many gig workers forget to account for this.

Use apps for organization: Use tools like Everlance or Stride to track mileage and expenses automatically, so you don’t have to manually log each trip.

Pay your taxes: Make sure to set aside money for taxes, as gig platforms don’t withhold tax like traditional jobs do. Keep track of your earnings and expenses so you can file accurately.

Tip: A solid financial system in place will allow you to keep more of your earnings and avoid surprises during tax season.

8. Build a strong profile and reputation: On platforms like Fiverr and Upwork, a strong profile and excellent reviews are critical. The more clients you serve and satisfy, the more visibility you’ll get.

Profile: Invest time in crafting a detailed and professional profile. Make sure to include your skills, experience, and any certifications that may give you an edge.

Reviews: Positive reviews can dramatically increase your chances of getting hired. Go the extra mile for clients, and always ask them to leave a review after a job is completed.

Tip: Building a strong reputation will not only help you earn more but also secure repeat business and higher-value jobs.

The gig economy offers many opportunities to earn money on your own terms. To maximize your earnings, focus on selecting the right platform, optimizing your schedule, offering quality service, diversifying your services, and tracking your finances. By being strategic, efficient, and proactive, you can make the most out of gig economy platforms and turn them into a consistent income stream.