Congratulations on the newest addition to your family! While exciting, there is a lot of preparation involved as you begin this next chapter (don’t freak out, breathe!). From baby showers to nursery decorating to baby name books, the path up to this point has been fun but also somewhat overwhelming — especially when it comes to financial matters. But it doesn’t have to be hard to budget for a new baby, and at David Adams Wealth Group, we don’t think it’s impossible for you to save a little money in the meantime, too. Taking a little bit of time now to plan before things get crazy (or crazier) always helps.
Start preparing for your little one by doing the following:
Finding the right prenatal care. The first ‘trimester’ of your financial preparation is during the actual pregnancy. What needs to happen before the baby is born? During this time, it is important to understand your healthcare and what you can expect in terms of prenatal care as well as what will show up on your hospital bill after baby’s birthday. Sticking with the medical to-dos, it is also a good idea to look for a pediatrician within your insurance coverage at this time.
Arranging time off. You will want to arrange maternity and paternity leaves from work and start to estimate how much you will be shelling out for everything baby needs (strollers, cribs, diapers, bottles, car seat). During this time, try to keep track of your monthly spend. If you’re not doing this already, it’s good to get a better understanding of what you’re going to spend each month and what that money will go toward. Do this by keeping track of any monthly debits as well as holding on to receipts for end-of-the-month tallying.
Opening new accounts to start saving. While you are drafting a budget, take some time to also set up some funds. An emergency, or ‘rainy day’ fund is a great safety net to have. An education savings account or 529 college fund is also a good idea to start early on. A good financial advisor can help with this (sorry, we don’t know of any…haha).
Once the baby is born, it is important to be certain on health insurance. Most providers give you 30 days to add your baby to your plan, some give 60. Either way, it is best to do this as soon as possible! Something else to consider during this time is a life insurance policy. We know – it’s not something you want to think about now, but it is best to be sure you have all of your bases covered.
Looking for safe, affordable childcare. If you’re a mom or dad planning to go back to work after leave has ended, finding the safest, best childcare is priority. Saving and budgeting for this is a crucial and often hefty expense, so it is best plan this out ahead of time while you have a second to look and not rush into anything.
Having a baby is such an amazing miracle! We hope the financial tips will provide some guidance and take away some stress so that you can focus on your growing family! Contact us any time. At David Adams Wealth Group, we specialize in families and individuals, and we make it our mission to help simplify their lives.