A new baby costs $12,000, while having a child up until 18 years old is $250,000 in present dollars. Because children are a significant expense to a couple or single parent, financial planning must be done before; yet, spending and saving habits also drastically change after a baby arrives, according to Citibank’s Women & Co. survey conducted by BabyCenter earlier in December.
The survey shows that a mother’s thoughts change after she has a child. Money is primarily on her mind, with parenthood coming in second. But, while this figure may cause some to say, “Pay more attention to your kids!”, the majority of new mothers (60 percent) find themselves making more daily financial decisions; 30 percent split decisions equally with a partner.
Financial decisions and responsibilities increase at the same time. These include deciding on new products, budgeting more, spending, managing savings, and financial planning. While mothers generally spend less on themselves than before, they seek out deals or coupons more. In fact, saving is considered more often, as well as rethinking financing and discussing spending with a partner.
Saving, additionally, shifts from paying off past debt to future planning. A new mother, as well as her partner, starts saving for a child’s education, begins to plan retirement, and is regularly thinking of strategies to lower spending.
Although her role in the workplace and, if magazines are any indication, getting her pre-baby body back are generally thought of as concerns and changes for new mothers, finances go through just as much of a change, if not more. About the results of the survey, Linda Descano, CFA(R), President and CEO of Women & Co., said in a statement:
“As every parent knows, having a baby changes everything – and finances are not an exception. The life change of a baby brings about new and substantial financial needs and questions. After having children, moms are increasingly taking charge of not just day-to-day spending, but also the longer-term planning of the financial future of their family.”
January 9th, 2012 at 3:33 pm
[...] did they find? First and foremost, mothers generally have money and parenting on the mind, in that order. Additionally, her role in family financial decisions is greater, with [...]