Planning for a Baby Financially

As you begin to take steps in your life to welcome a baby into your family, you may feel overwhelmed. From preparing for the arrival to health concerns, many people forget to properly prepare their finances. Luckily, there are ways that you can ease your stress while still properly preparing for your baby.

What to do Before the Baby

- Understand and Anticipate

Babies are expensive. There is no way around that. However, you want to be sure that your current health insurance plan covers the delivery costs as well. You want to get an idea of what your expected bills will be so that you aren’t flattened with an unexpected amount that you need to pay

- Know Your Maternity/Paternity Leave Options

You want to know how much time you will have off when your baby comes. You want to understand your cash flow as well so it is important to see whether your leave will be paid or not. This can help indicate how ready you are. If you won’t get paid during your leave, then you want to make sure you plan for that loss of income.

- Get a Budget Together

This may seem like common sense, but it is important to remember to do this step. You want to have an idea of your current financial situation. Once you have that idea, you can see how those numbers will be impacted with the addition of a baby. Not only do you need to keep in mind medical expenses but all other expenses as well from food, to clothes, to cleaning, to baby areas of the home, baby furniture, etc.

- Find Doctors Within Your Insurance Network

This is especially important because it will impact how much you spend on medical costs. You want to make sure you have appointments set with doctors from pre-natal care to post-natal care that are all within your network.

- Emergency Fund

Do you have an emergency fund already? If so, see how much you currently have and how your goals will be impacted with the addition of a baby. If not, now is a great time to start that fund. This fund will help you in case of any emergencies so that all your bills are paid, and you are not struggling to make ends meet during tough times.

During Delivery/Hospital Time Frame

Now that you have done all the pre-planning, you are right at the end of your pre-baby journey. As you are in the hospital for delivery you want to make sure that you tighten any loose ends that come when your baby is brought into the world.

Make sure you have a social security card and birth certificate when your baby arrives. You should get the necessary information from the staff at the hospital. However, if you are doing a home birth then you need to contact your state’s office in order to get that information.

Your Baby’s First Month

- Health Insurance for Your Baby

You want to make sure that your baby is covered under your insurance plan! A common rule of thumb is that you will have 30 days from the birth of your baby to get them onto an existing health insurance policy.

- Prepare for Child Care Costs (If Any)

If there is no parent available to stay at home with the baby, then you will need to plan for childcare costs. These can be very expensive and take a long time to find a daycare or nanny that you like. That is why sooner rather than later is better to understand and compare your options

Overall

Adding a new baby to your family can be stressful. However, if you take the proper time to prepare and plan then you should be able to handle everything that is involved! Take your time and make sure to talk to a professional if you have any questions!