Financial Reminders for New Parents

New parents have a lot going on between the sleepless nights, dirty diapers and piles of laundry. This isn’t all that new parents must consider either, as financial considerations necessarily change as soon as a new child is brought home. 


Bringing Home Baby

Many new parents begin paying for their children even before they bring baby home. In addition to buying things for the nursery and lots of baby gear, parents have probably also begun paying for the medical care the mother receives during pregnancy. Even those with insurance have a deductible to hit! Depending on the insurance plan and the care a pregnant woman receives, new parents may pay anywhere from just a few hundred dollars to a couple thousand for an uncomplicated pregnancy and birth. Those who adopt also face considerable costs as they apply to an adoption agency, get a home study and pay legal or attorney fees that are often prohibitive. 


Create a Budget

Some people think the word “budget” is a bad word. In truth, a budget is not a list of rules limiting your fun but is a simple plan for how you will spend your money. When new parents sit down and lay out all of their income and expenses, they will identify areas of flexibility they may be able to control as they work to fit a new baby into their financial plan. Budgets are for both those with limited income and those who are financially stable. Some websites even have simple budget worksheets to help you develop one. 


Plan for the Future

New parents also have to think about how expenses will fluctuate in the years to come. Those who can afford it are encouraged to begin saving for college. Savings accounts can work, but investing in a 529 plan seems to be the best bet as you will see a return on your investment that a simple savings account won’t be able to offer. Almost everyone, no matter how small the income, should also take out a life insurance policy on a new child. Life insurance on children is incredibly affordable and can ease the financial burden should a tragedy occur later on. 


Use Your Resources

Single parents may face additional challenges as they grow their families. It is important that anyone offering finance tips for single moms consider how a single parent dynamic can affect a family’s ability to save, plan for emergencies and pay for quality childcare and extracurricular activities. Often, the state offers resources that can help offset some of these costs for those at or near the poverty level, and there are many agencies or organizations that offer additional aid. 

The most important thing new parents should remember is to stay in control of their financial situation as much as possible. Children bring new expenses, but many of these expenses can be planned for, and there are lots of ways to save as well. Shopping consignment sales or thrift stores is a good start, and many brands offer loyalty savings and coupons to offset expenses. Buying in bulk provides its own savings as well. Whatever the added cost children bring, they add joy and love to our families, and that is priceless. 

Answers to the Most Frequently Asked Questions About online trading

Online trading has become very popular because it is a way of making money. Despite its popularity, there is still a lot that people don’t know about forex trading. CMC Markets would like to help you make wise decisions when it comes to matters of online trading. If you are a beginner and would like to learn more about online trading, read through the answers to these frequently asked questions.

What is online trading?

Online trading is a form of trading financial securities such as bonds and stocks, financial derivatives or foreign exchange electronically. Advancements in technology make it possible for people to buy and sell these securities through an electronic platform and network. There are numerous virtual markets where people trade online. They are commonly referred to as Electronic Communication Networks.

What is the difference between online trading and day trading?

A common misconception about online trading is that it is the same as day trading. The difference lies in the methods used. In online trading, an investor buys and sells securities via the internet while day training is about speaking with a broker by telephone. An individual makes transactions on the same day.

What are the advantages of online trading?

Online trading is the fastest method of trading. Since investors use computers to make transactions, it gets done so quickly. Information technology has given rise to high-speed internet connections and computers. It means that you can easily trade stocks, bonds, currencies, futures or options online.

Secondly, online trading has improved the speed at which transactions can be made and settled. Initially, people had to deal with a lot of paperwork. It took long for the documents to be copied. Now they can just be filed electronically.

How can I become an online trader?

It is so easy to begin trading. All you need is a computer and some money enough to open an account. It is one of the best methods of investing especially if you have a good financial history. However, this doesn’t mean that you must have a disposable trade or a personal broker to do it. The virtual markets have become more accessible. Despite this, there is a still a lot that an online trader has to consider. The first step is to choose a stockbroker.

Before you begin, educate yourself about the twelve different types of trade that can be placed. These include market orders, limit orders, All-or-none orders, day and GCT orders, extended hours trading, trailing stop orders, bracketed orders, selling short and buy to cover orders, and stop order and stop limit order. Familiarize yourself with all these types of orders so that you can understand how the market works. It is important because it will help you avoid making big and expensive mistakes.

Are there risks in online trading?

Any method of trading securities has some risks of potential losses. It doesn’t really matter if you are doing it online or not. If you are new to this business, take some time to understand the principles. What are your investment goals? Also, think about your own risk tolerance. Another factor that may affect your ability to execute transactions is high internet traffic. Try to avoid the temptation to ‘overtrade’ as it can have negative repercussions.

What is the meaning of “trade on margin”?

You will have to open a margin account if you wish to borrow some money from a firm. There is a certain amount of the purchase price that you will have to deposit in the account. It acts as your initial equity. Trading on a margin simply means that you can purchase more securities. However, you have to fully understand this concept since there are risks of incurring losses.

How do I open an account online?

There are many brokerage firms online that you can open an account with. To activate an account, you have to sign an application document. Some firms allow you to do this electronically while others demand a hand-written one. Ensure that you understand all the specific guidelines.

How long does it take for an order to be executed?

If you are doing it electronically, the process is fast. However, there may be delays especially if there are high trading volumes. A delay can cause a significant difference in the price. The speed at which an order gets executed also depends on the firm’s level of access. If their system is complicated, the process may be slow. Also, ensure that the speed of your internet connection is fast as this may impact on the speed of transaction.