A baby is on the way! But with what costs do the expecting parents have to expect?
As the expectant parents are overwhelmed by their emotions, sooner or later – often by future grandparents – the inevitable question is, “Can you even afford that?”
Children cost – but how much?
Clearly: children cost money. But how much, that’s difficult to estimate before. Certainly not if it’s the first child. Therefore, the question of the last can barely answer in advance. Especially at the beginning of the new human life, the expenses for the parents pile up. Even if you already set up the nursery in your head and are planning to move to a house with a garden – stay realistic. Your apartment will not be too small in a few weeks and your baby will not care for a princess room.
But even the urgently needed basic equipment such as a stroller, baby car seat, clothes, changing table and vials can make a real hole in the budget. In order to keep costs under control, parents-to-be can buy much for the baby’s second hand. Also precisely formulated wishes to parents and friends, who would like to gift the young family, can help. But not infrequently, the young parents realize: The money is not enough. A loan has to come from. But is it that easy to get in this particular life situation?
A baby is not a fundamental obstacle to a loan
Basically, offspring is not a hindrance to a loan. The decisive factor is the respective life situation. Often a salary disappears during the first time after birth, or the salaries of both partners are reduced if parental leave is taken together. Therefore, you should carefully explore your financial options before making a loan application so that you do not take on the installments. Although the offspring do not have a negative impact on their creditworthiness per se, obtaining a loan requires a high enough income. However, this is difficult for some young families when a full salary in favor of childcare breaks away.
Less creditable income during parental leave
Although the state supports families through parental and child benefits, these benefits are not counted as collateral when applying for a loan. As these are non-attachable services, these revenues are not counted as monthly income. Incidentally, the same applies to maintenance payments that single parents receive from the other parent. This makes borrowing for single parents often difficult, even if their monthly budget is not so low due to these benefits. In such cases, the inclusion of a solvent guarantor in the loan application can significantly increase the chances.
Incidentally, the same applies to everyone else. A creditworthy guarantor can help if the bank’s eligible income is insufficient. This problem is not only known to new parents, but also large families.
Although their financial situation is often not bad at all due to the child benefit, as mentioned above this is not included in the calculation. The children on the other hand already – they are taken into account on the expenditure side in the budget.