You or your significant other just received a positive pregnancy test – congratulations! A planned addition to the family can be a special kind of joy, but as everyone knows, a baby comes with a whole set of new expenses. If you’re still considering having a baby, or if you already know your due date, there’s no need to stress – early planning and taking necessary measures can make a huge difference when it comes to adjusting your finances for a new family member.
If you’re planning for a baby, here are a few steps you can take to prepare financially:
Make changes to your monthly budget.
Babies cost a bundle, and planning for a number of additional monthly costs will save you a financial headache in the long run. Before your baby is even born, you’ll need to make a number of purchases – outfitting a nursery, a wardrobe that will clothe your baby as they grow, gear for your home (including baby-proofing), diapers, and even childcare if you or your spouse is unable to stay at home. While many expecting parents can offset some of these costs with a registry and a shower, it’s best to plan on having the funds to cover all of it.
Pay down any debt you can.
Getting your finances in shape before your baby arrives can save you a lot of stress as you re-adjust your budget. Focus on your smallest debt balance first, and maximize your monthly payments so you can pay it down faster. You can also look into debt consolidation; contact one of our Polam team members to learn more about your options.
Consider your medical and prenatal costs.
Nine months of pregnancy can take a toll on an expectant mother’s body, and being in the care of a qualified OBGYN can make a significant difference in your child’s future health, as well as a healthy delivery. Calculate your overall costs, including co-pays, insurance deductibles, doctor’s visits, and over the-counter prenatal care. Exact amounts will vary depending on your insurance provider, but it’s best to get an overall idea of how much you’ll be spending so you can prepare for it.