Lesson 1: Emergency funds become more important than ever.
Before we had kids, we never had a fully-funded emergency fund. We had savings, but our emergency fund was more of a “spending fund” since we used it as we wished. And when we had a real “emergency,” we just charged it on a credit card and paid it later. It wasn’t the most efficient method for handling life’s surprises, but we handled it fairly well.
These days, I can’t imagine not having three to six months of expenses designated for emergencies. And it’s just not about bills; it’s about peace of mind. Our kids are extremely healthy, but the medical bills constantly catch me off guard. For heaven’s sake, my daughter’s ordeal with swimmer’s ear cost us $300 in visits and prescriptions just last month!
Then there are all the other surprise expenses parenting requires – the birthday parties you forgot to buy for, the last-minute school supplies, and the dress clothes for fancy occasions. Plus, you still have the regular emergencies to plan for – the leaky roofs, surprise car repairs, dental work, and vet bills.
Now that I’m a parent, I rest easy knowing we have savings to cover practically any expense we couldn’t anticipate or plan for in our monthly zero-sum budget. Because, life happens… and kids just add one more element of surprise.
