Getting your finances under control is one of the most critical aspects of preparing for your baby’s arrival, regardless of whether your pregnancy was planned or a complete surprise. As soon as you become pregnant, the costs begin to pile up. Throughout your entire life, there will be almost no other occasion that signifies a financial shift like this one.
This checklist can help parents-to-be get their finances ready before having a baby. To ensure that you and your child have a secure financial future, do these essential financial tasks.
Sign up for and review your medical insurance
Get a health insurance plan if you don’t have one currently. Find out if your or your partner’s employer offers insurance. If not, look into plans offered by associations you belong to (such as a freelancers’ union or a small business organization).
Understand your health-care coverage and the budget accordingly. Make sure you know what your health insurance covers and what it doesn’t, such as prenatal vitamins, alternative therapies, doulas… Don’t wait too long if you need to change your insurance plan for better coverage.
Even if you have health insurance, having a baby is still pricey. Early in the pregnancy, you should begin to estimate your expenses. If you find that the post-insurance expenses are still too high, you may look into more affordable fertility solutions.
Check your company’s family leave policies
The amount of time you and your partner (if you have one) have off work and whether or not you get paid during that time can have a huge impact on your household finances in the next year. To have a clear picture of how your maternity leave will influence your cash flow, you need to know your company’s policies and the laws of your state. Consider whether you will need to take unpaid leave and how this will affect your finances. How can you begin to save now to make it possible?
Start or check your emergency fund
Now is the time to plan for the unexpected and build a “rainy day fund”. There’s no guarantee that you’ll be able to afford any unforeseen expenses that may arise while raising a child. A savings account with three to six months’ worth of living expenses is a good place to start.
Be a wise shopper
I know you’re excited about your new role and want to get everything new for your baby. Not to mention that children’s items are always really cute and appealing to us. You do, however, have many years ahead of you, so be cautious with your spending.
You’ll need to set a budget for anything from diaper bags to strollers, so consider purchasing used to keep your spending in hand and avoid overspending.
Pregnancy clothing can be borrowed. Because you’ll only need them for a short period of time, consider whether or not you can borrow some of your maternity clothes instead of buying them. Can you shop at thrift stores or repurpose non-maternity clothes?
Shop around for used baby gear. When borrowing or purchasing used equipment, make sure it meets current safety regulations. Most clothes, toys, and baby baths can be reused, while a new car seat or breast pump may be necessary.
Plan your post-delivery
Expenses such as diapers, child care, and additional meals will have a long-term impact on your family’s finances. Don’t wait until the last minute to prepare for them. It can take weeks to find a good daycare or nanny for your child. Visit daycare centers or interview nannies, and complete an application and permission if necessary, as well.
Write or adjust your will
Tragic events may occur, and you want to ensure your child is cared for if one or both parents die.
It’s easier to prepare a will and choose a guardian before the baby is born than after. This way, you may focus on the baby when he/she arrives.
For this child and any future children, you must select a guardian and make financial provisions if you or your partner are not present. You might not need a lawyer to make a will, but you should engage one for estate planning purposes.
Maintain your retirement savings
Continue to save for your retirement. When a baby comes, it’s easy to lose sight of your own personal ambitions and long-term objectives because of such a significant responsibility. With nursery walls to paint and breathing techniques to practice, saving for retirement may not seem like the most apparent thing to do now. However, it is an important aim to prioritize. Maintain control over your retirement plans so that your child will not be forced to support you in your old age.
