Financially Planning for a Baby

Financially Planning for a Baby

Financially Planning for a Baby

Is there a bundle of joy in your future? Whether you are already expecting, or are planning to start a family in the near future, it is always a smart idea to financially plan for a baby. Putting together a financial plan prior to the baby being born will help you with budgeting and other aspects of daily life.

Understand Delivery Costs 

It is expensive to have a baby, and we are not just talking about diapers, wipes, formula, furniture, and clothing. We are talking about the actual delivery here. Even with health insurance, having a baby can be expensive. You will want to find out sooner in the pregnancy, rather than later, how much you will have to pay out of pocket for the delivery so that you can begin planning as soon as possible.

Plan Your Leave 

Start looking into the maternity or paternity leave policies at your place of employment. You will want to plan for leave early on in the pregnancy. Give yourself and your employer plenty of advance notice about your leave and find out if you will be paid during the absence. This will greatly affect how you financially plan for the baby.

Create a Pre-Baby Budget 

Now that you know you are pregnant you will likely want to start buying necessities. These include car seats, strollers, cribs, clothes, sheets, diapers, and more. Put together a budget before the baby arrives. If you have a tighter budget, try to steer clear of high-end baby items. There’s no sense in breaking the bank for a stroller with an LCD monitor so long as the more affordable one has working wheels.

Post-Delivery Budget 

Once the pre-baby budget is complete, you can sit down and plan a post-delivery budget. This should consist of items you will purchase regularly, such as diapers, wipes, formula, and possible child care.

Find a Doctor In-Network 

Make it a point to find a pediatrician for your baby who is in your health insurance network. There’s no reason to go to an out-of-network doctor. This will only cost you a pretty penny, all of which will likely come directly out of your pocket.

Rainy Day Fund 

If you have a rainy day fund already in place, now is a good time to check the health of it. If you don’t have one in place, now is the best time to start one. This fund should only be used in emergencies, and kids are the certainly prone to emergencies.

Add Baby to Health Plan 

The baby will be covered under the mother’s health plan for the first 30 days of life. After that, it’s up to you to add the child to a plan. Whatever plan you decide to add the baby to, make sure there is coverage in place within 30 days of their birth.

Ready to expand your family? Contact the experienced team at Tobin & Collins today to schedule an appointment regarding your financial future. The office can be reached at 201-487-7744 in Hackensack, NJ.