A few weeks ago, I announced on my blog that I’m expecting twins (and before anyone thinks that DC’s wife is having twins, this is Cat writing – haha!)
I admit; I was in complete shock when I found out this news! In addition to worrying about their health, all I could really think about was how this one piece of life altering information changed my financial plans forever.
I just moved back to the United States, and I’m only weeks away from becoming a full time blogger. I always envisioned that my hard work would add up to this moment, the moment of owning my own business and being able to take care of my kids by staying at home every day.
What I never considered was the possibility of having twins. The one cousin in my family who has twins didn’t make me think it was enough of a family trend for it to happen to me! Needless to say, every time we see them on ultrasound, we get so excited, but we’re also really realistic about how we’re going to afford them. Double the kids means double the fun, but it also means double the expenses!
Here are some of the things I’m doing to prepare:
1) Stockpiling Money
I’ve been saving money like it’s my job (well, at least writing about it is my job!) To be honest, it’s really hard to do when I’m so committed to paying off debt, but my husband keeps encouraging me to keep on saving. After all, we don’t know if our children will have health problems or other mounting hospital bills, all possibilities with any newborn but increased when it comes to twins. We will also have to move across the country just a few weeks after they are born, which will be costly. So, even though I have the extra income to pay off my debt, I’m hanging on to it instead, just in case.
2) Paying Minimums on Loans
Over the past few months, I’ve been paying around $1,000 a month towards my student loans trying to knock them down a bit. However, now that we’ll be meeting two brand new kiddos in less than 6 months, I’ve only been paying around $200 towards the loans. I hate doing that, especially when I have money sitting there, but having a cushion is so important right now. I’m never a proponent of paying minimums, but it’s just the smartest choice for me right now.
3) Researching College Savings Plans
I am enjoying doing some research on college savings plans. I will likely encourage these kids to go to an in state school. I spent a lot of time and energy going to a top 25 school, and graduating from there hasn’t helped me any more than my husband’s state school has helped him. I hope to impart that knowledge to my kids early on and encourage them to take community college classes in high school to earn some inexpensive credits. Still, we’d like to start investment funds for both of them to make the burden of sending two off at once a little easier on us!
So, that’s the latest over in my household. Saving money, skimping on student loan payments, and trying to figure out how much these two kids will cost! If you have any money saving advice for a first time parent, I’m all ears!
Photo Credit: FreeDigitalPhotos.net
SingleMomIncome says
I think you’ll be great! I would save up some money for emergencies but other than that kids aren’t really that expensive. I have two girls pretty close in age (3&4) and money is the last thing on my mind when it concerns them. Once you see your beautiful new babies your only worries will be loving them and the money worries will start to go away.
BudgetBlonde says
SingleMomIncome I love this. Everyone just keeps harping on how expensive they will be and I keep thinking, what do they really need???
CSMillennial says
Sounds like you’re doing the smartest things you can already – saving and saving some more! I think it’s a great idea to save as much of your cash as you can now for the short term, as well as already looking into college saving plans for the long term, too. Thanks for sharing, I know we’re all enjoying the updates on how you guys are getting ready for twins!
BudgetBlonde says
CSMillennial Aw thanks, that’s so sweet!
Holly at ClubThrifty says
Congrats on the babies on the way! There is nothing more amazing than bringing a baby home from the hospital. You’ll get to experience twice the joy!!!
BudgetBlonde says
Holly at ClubThrifty I can’t wait! Thanks for the positivity as always Holly!
Laurie TheFrugalFarmer says
Stockpiling money is the very best thing you can be doing, Cat. You’ll have plenty of cash for any expected or unexpected expenses, and then any leftover can go toward the debt. Great planning job, girl! As Holly said, bringing a babe home for the first time is SO amazing, and you get to do two at the same time – score!
BudgetBlonde says
Laurie TheFrugalFarmer I can’t wait – It’ll be os much fun!
Matt @ Mom and Dad Money says
I think you’re right on in terms of sacrificing debt repayment for building savings. Having twins is going to be a big adjustment and having that cash on hand to handle whatever comes your way will be a big help. Along those lines, I would try to get away with buying as little as possible, only the real essentials, until they actually get here. You’ll figure out what you actually need soon enough, and it will be easy to get when you need it. Better not to spend a ton of money now before you truly know if you have the need.
BudgetBlonde says
Matt @ Mom and Dad Money Excellent advice. Right now, the only things I’ve bought are a piggy bank for each of them and two t-shirts from Grenada. :)
FrugalRules says
You’re doing all the right things Cat! We saved like crazy before all our kids. Our “problem” was that we had four in the span of five years so it seemed like all we were doing was saving. As Holly & Laurie said, there is nothing in the world like bringing your little one home from the hospital and you get double the pleasure. :) My tip is for when you get a little closer to your due date, but make some freezer meals. The last thing you’ll want to do those first few weeks is cook. If you stock up some freezer meals it makes dinner much easier as you can just pull out the meal and you won’t be spending to eat out.
BudgetBlonde says
FrugalRules Oh that is such excellent advice! I know I’m not going to want to cook. I barely want to cook as it is haha.
BorrowedCents says
I am not a parent yet but I feel you are already preparing in a good way. I know you will get more tips from parents.
BudgetBlonde says
BorrowedCents Thanks so much! :)
Eyesonthedollar says
I think you are way ahead of the curve compared to most expectant parents. I am so glad that I went to a state school. I really considered some private schools and one prestigious one with a big price tag, but went with good old Western KY University. No one has ever cared one bit where I went to school. As long as you know what you’re doing and don’t plan on running for President, no one even asks.
I have one tip that is not really frugal, but I would go on as many dates as possible. Go out to eat. Go to the movies, whatever you like to do with your husband because it will be years before you really get to do that again. You get to do family things, which is a new kind of fun, but the one on one time is severely limited.
BudgetBlonde says
Eyesonthedollar That is really good advice…. now if only he wasn’t taking the Step 1 three weeks before they’re arriving haha!
Andrew LivingRichCheaply says
Good advice…although I’d probably research baby gear and stuff before spending too much time on college savings plan. Well the college savings plan was easy for me, NY offers a tax benefit for contributing to the 529 plan and it is run by the low-cost Vanguard. As for baby gear, check out the book “Baby Bargains” I know so many parents who spent a lot on baby gear that was unnecessary. I am thinking about writing a post about that…
BudgetBlonde says
Andrew LivingRichCheaply That would be a great post. I’m going to basically purchase the bare minimum and see what we need as they go. I know our family will be good about gifting the big ticket items.
DebtRoundUp says
I can only imagine how it feels when you are about to have twins. The one child was a big enough change for us, but we have enjoyed every moment of it. I know you are doing the right things though and that is all that matters. Keep it up Cat!
BudgetBlonde says
DebtRoundUp Thanks for the encouragement as always Grayson!
Brian @ Luke1428 says
Advice…hmm…Don’t get baby gadget happy when you go shopping. There are many things that aren’t necessities yet we get sucked into purchasing. We bought so much stuff that we never ended up using.
BudgetBlonde says
Brian @ Luke1428 That is great advice. I’d like to think of myself as a minimalist and just looking at the Walmart baby aisle gives me anxiety lol.
Paulette Mensah says
Congrats Cat! I have a friend that two small children and she coupons. She has a huge stockpile of baby wipes and diapers. You may want to check out some of those extreme couponing sites. You will save a lot of money and its good to get started early. I believe Baby’s R Us will be having a huge black friday sales as well.
BudgetBlonde says
Paulette Mensah Thanks Paulette!! That is such good advice. I need to get my couponing game on!
OutlierModel says
It’s never bad to have a bit of stockpile of money. You can always put some of it towards the loans if it turns out you don’t need it for other expenses. :)
I used to work in baby product retail when I was younger – start signing up for registries, even if you don’t plan on using them. You’ll often get a free gift and coupons.
BudgetBlonde says
OutlierModel That’s a great tip!! I’m glad to have coupons again now that I’m living in the States again!
DonebyForty says
I like the strategy of paying minimums while the babies are on the way. Much better to eat some interest costs and to have more cash on hand. You can always throw it at debts or investments later if you find you have too much cash later. :)
BudgetBlonde says
DonebyForty Thanks! I think it’s a solid plan for now! :)
brokeandbeau says
I agree that an in state school makes the most financial sense. I went to NYU and my younger brother is finishing up at Princeton, both of those are over $50,000/year at this point!
BudgetBlonde says
brokeandbeau Exactly!!! And yet, both excellent schools! Ah, education is a tough one for me because I want them to have the very best!
blonde_finance says
I agree with holding off on paying loans now that you have kids on the way. I know it is not fun to have debt and pay interest, but it gives you flexibility and when you have children, you need all of the financial flexibility you can get. Good luck!
BudgetBlonde says
blonde_finance Thanks so much!!
Erin My Alternate Life says
Aww, this news still excites me! I would stockpile like crazy as well and just pay minimum payments on my debt. Looking forward to hearing about what you find on the college savings plan front.
BudgetBlonde says
Erin My Alternate Life Aw thanks!! You’ll know I’ll keep everyone in the loop for sure. :)
pharmacy05 says
Congratulations!!! When I found out I was having twins, I was happy and scared at the same time. They’re 10 now and have been such a joy. I always said if I can handle two babies at once, then I can do anything!!! They were miracle babies and had some minor complications. If you see them now, you would think that they were 1 pounders. All the best to you and your family!! Keep saving!
BudgetBlonde says
pharmacy05 Thanks for the kind words and encouragement! I love hearing from other parents of twins and glad to hear the positivity!
Beachbudget says
I think that makes sense. You don’t know what to expect, so when things settle into a routine (if they ever do-lol) you can refocus on your goal to pay more in student loan debt.
BudgetBlonde says
Beachbudget I agree. It’s hard to shift focus but I think that’s the best idea.
MicrosMissions says
Paying the minimum sounds like a pretty sound strategy. If you discover you were being too conservative, you can always take a chunk of the savings and put it towards the loan. The peace of mind is more important than most people consider. Stress kills.
BudgetBlonde says
MicrosMissions So true. Thanks for the 2 cents! :)
SixFiguresUnder says
Ooo congrats! I say take super good care of yourself. The longer you keep those buns in the oven, the fewer medical issues their are likely to have. I wouldn’t fret about college yet… maybe stockpile diapers instead :)
BudgetBlonde says
SixFiguresUnder Good point!! Thanks!
deardebt says
I think you are making smart choices given what’s going on in your life!
Tara Zee says
my husband jokes we could have twins because his grandmother had them but I told him it can’t happen if I had none on my side but never say never I suppose…
I remember telling a friend of mine a few years back that I wanted to save up for my kids beforehand and she was telling me how her mother always told me if you ever try to save up enough money for your kids you’ll never have them! there will be financial struggles but that’s what life is about and the kids make it all the worthwhile.