When Anjali Vanjani cradled her newborn daughter for the first time, a wave of emotion swept over her. As a seasoned company secretary, she is no stranger to meticulous planning and financial prudence. However, nothing quite prepared her for the financial journey of raising a baby in 2024. With her husband Abhay Asknani (a chartered accountant) by her side, they embarked on this new chapter with a clear strategy. Their combined expertise provides invaluable insights for new parents navigating similar waters.
The moment they decided to start a family, Anjali and Abhay knew they had to prepare financially. From prenatal care to delivery, the costs add up quickly. Anjali shares, ’We allocated a significant portion of our savings towards medical expenses, ensuring we had a buffer for any unforeseen complications.’ Abhay adds, ’Budgeting for a baby begins well before the little one arrives. We factored in everything from maternity wear to setting up the nursery. Creating a detailed budget and sticking to it is essential. Unexpected costs will arise, but having a well-thought-out plan helps manage them without financial strain’
Diapers, formula, baby clothes, and healthcare are just the beginning. ’We found it helpful to subscribe to monthly baby essentials delivery services, which often come at a discounted rate and save time,’ Anjali notes. ’It’s important to be mindful of quality over quantity when it comes to baby products.’ Abhay chimes in, ’Tracking everyday expenses is crucial. Using financial apps that categorise spending can help parents stay on top of their budget. Setting up a separate account for baby-related expenses not only helps in managing cash flow but also ensures we don’t dip into our emergency funds.’
Raising a child goes beyond immediate needs. ’We started a savings plan specifically for our daughter's education and future needs,’ Anjali says. ’We also invested in a good health insurance policy that covers the entire family, ensuring we are protected against high medical costs.’ Abhay advises, ’Financial planning for a child's future should include both savings and investments. We opted for a mix of low-risk and moderate-risk investment options, such as child-specific mutual funds and education savings plans. Diversifying our investments ensures we are prepared for future educational expenses and other significant milestones.’
As a working mother, Anjali reflects on the challenge of balancing career and family life. ’Balancing career and family life is challenging but manageable with the right support,’ she says. ’We hired a part-time nanny to help during work hours and leaned on family support. Flexible working hours and remote work options have also been a blessing.’ Abhay asserts, ’Work-life balance is vital for both parents. From a financial standpoint, it’s important to assess whether one parent should take a career break or work part-time. We evaluated our finances to ensure that any temporary reduction in income wouldn’t affect our long-term goals.’
Raising a baby is a beautiful journey, and with careful financial planning, it doesn’t have to be overwhelming. ’Communication and teamwork with your partner are key to navigating this new chapter,’ Anjali smiles. Abhay concludes, ’As a CA and a father, I believe that financial stability is the foundation of a happy family. Start early, plan meticulously, and be adaptable. The financial strategies we’ve implemented have given us peace of mind, allowing us to focus on enjoying these precious moments with our daughter.’
For new parents in 2024, the financial landscape may seem daunting, but with insights from professionals like Anjali and Abhay, it’s clear that strategic planning and smart budgeting can make all the difference. Whether you're just starting off, or are already on this journey, remember that every step you take towards financial readiness is a step towards a secure and happy future for your family.