RoxanneWhat do most people think of when preparing for their baby’s arrival? Material items like clothes and cribs. While those are undoubtedly important, you’ll need to complete some financial tasks to ensure that money is not an issue when your baby enters the world.
Here’s what you can do now in the pre-baby stage to make that addition to your family a financially smooth one.
1. Make a list of your expected costs.
Having health insurance won’t ensure that your baby’s arrival will be one that is entirely cost-free. You’ll need to anticipate as many costs as possible, so make an extensive list that includes items like:
- Prenatal care
- Labor
- Delivery
- Other bills
To make this list as accurate as possible, review your health insurance plan to see what’s covered. If you have any questions, contact your insurance provider or agent to gain clarity ahead of time.
2. Pick your pediatrician.
As you review your health insurance, make it a point to pick out your baby’s physician. They’ll likely have to see them within the first week of being born, so don’t delay in making this critical decision.
Ask around for recommendations on pediatricians. Once you have a few, double-check to see that they are part of your insurance network. You can verify this by calling your insurance company or contacting the clinic.
3. Review maternity or paternity leave policies.
Are you currently working? If so, you’ll want to review your company’s leave policies to see if/how you’ll be paid when you cannot work due to childbirth.
4. Make your pre-delivery budget.
Take the information from your list of health insurance coverage, expected costs, and leave to create a pre-baby budget.
You may feel tempted to buy expensive baby items that are cute and trendy. As long as your budget allows for such purchases, that’s fine. If not and money is tight, you’ll want to set limits on each department of spending to avoid exceeding your budget.
5. Make your post-delivery budget.
The costs will keep coming once your baby is born in the form of food, diapers and wipes, childcare, and the like. Make your post-delivery budget now, so you don’t experience sticker shock once your baby is born.
6. Get ready for a rainy day.
What can kids bring with them? Joy, but also emergencies as they explore their new world and let curiosity get the best of them. For this reason, check to see how much you have saved up for a rainy day.
If your emergency fund doesn’t equal three to six months of living expenses, now is the time to bolster it. Although it may seem tough to do if you’re pregnant, there are ways to accomplish this goal if you get crafty.
Do you have old clothes collecting dust around your home? Sell them online via eBay or Poshmark for extra emergency fund cash. Are your bank statements filled with monthly subscriptions you hardly use for entertainment? Cut them and use those savings to put towards emergencies.
