When you are having a baby, it can take much more than simple budgeting to be well-prepared. If you are wondering how do I financially prepare to start a family – it is time to get your pen and paper and start some extensive planning.
The essence of financial preparation is budgeting ahead of time and preparing yourself to save money for the future. Planning before and during the child’s birth also requires some financial planning. And lastly, essential social needs for the baby will also come after their birth. So, let’s get into the three essentials of financial planning for a baby.
Medical Costs And Health Insurance: Check-in with your current health insurance status and ensure that it is fit for you to pay for the medical costs. Talk to a pediatrician or your insurer to know closest to how much you have to pay ultimately.
Maternity or Paternity Leave: Check-in with your employer about paid parental leave. The paid leave duration can change depending on your workplace’s operations and where you live.
Prioritize Your Expenses: Start checking the prices for baby needs and make some space in your family budget to fit those in. Remember to ask experienced parents about their monthly costs with a new baby.
Planning essential needs for the baby: Food, clothing, babysitting, and more are your first concerns. Your family’s regular budget will also change – prepare for that. Lastly, get a social security number for your baby – it can help you deduct your taxes and fund the child.
Insurance and savings: Consider healthcare insurance for your baby. You can invest in one for them or add them to your healthcare insurance plan. Additionally, you should start an emergency fund for accidents or unexpected expenses for your newborn.
Finally, once you plan the pre-birth and after-birth expenses, it is time for the future. No time is too late or too early to start planning – especially for the child’s tuition and creative endeavors.
Tuition fund: Talk to experienced parents and plan a reasonable budget for your child’s education. While it may seem small since newborn care is expensive, it can grow over time.
Extra-curricular fund: While an extracurricular fund is optional, it can help your child in the long run. If you feel you want your child to pursue creative fields in the future, start planning for a small savings account to fund it later.
Do you have any more ideas about planning for a new family? Don’t hold back; let us know your idea to make parenting easier for new parents. Join us in the movement to make adult lives more accessible – you may find something good to take away at the end of the day.