CFP: How to know if you have enough money to start a family - Business Insider

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A certified financial planner shares a budget and 3 financial pillars that can help you determine if you're ready to have kids

, 31% of participants who were asked about COVID-19 said the pandemic has prompted them to postpone their plans for having kids. Of that group, 41% said that's because they're worried about their finances.

Lauren Anastasio, a certified financial planner with SoFi, said since the onset of the coronavirus pandemic she's seen individuals and couples asking questions like, "What if I lose my job? What if I lose my insurance? What if I need to start dipping into my emergency fund? Can I afford to both take a pay cut and have a baby?"

Anastasio tells clients that, in the context of planning a family, there are three "pillars" to financial stability. Before we get into those, a word of caution from Anastasio: Having kids is a highly personal decision that a financial planner can't make for you. Only you can know whether you feel ready.1. You have an emergency fundshould cover three to six months of expenses, Anastasio said. This is "more important now than ever," she added, given the current health crisis and soft labor market.include student debt.

Instead think credit-card balances, personal loans, and unsecured lines of credit. Anything with 7% interest or higher counts as high-interest.The funds coming into your bank account should comfortably cover your existing obligations, Anastasio said, while also allowing you to save for retirement.

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