There’s no hiding it: babies are expensive. If you haven't started a family yet, you’re probably wondering how you will be able to afford it.
A long list of prerequisites shouldn’t be your main focus. It’s not about solving every single household issue before having a baby. It just takes a loving couple who is willing to work out their finances, together. Here's a list of things you should take care of before having a baby:
Health Insurance. It’s very difficult to become insured once you’re already pregnant, so make sure you secure health insurance before you plan on starting a family. Take into consideration your medical bills will begin adding up with your prenatal visits, delivery, and check-ups. Don’t get yourself into a rut before the baby is born.
If you’re on a high deductible health insurance plan, be sure to use your health savings account offered by your employer. The savings in taxes from both of these will be a little extra income in your monthly take home pay.
Get a Will. A will is a court-recognized document that allows people to divvy up their money and assets to their family, and is an excellent way to ensure your children get what they need in the case that something happens to you. If you fail to get a will, and something happens to you, it is up to the state to figure out who gets what. Also, don’t forget to appoint a guardian for your child.
Emergency Fund. You never know what’s going to happen: whether it be complications with the pregnancy with expenses that aren’t paid by insurance, or your car breaks down (which you will need to get back and forth to your medical appointments). Make sure you have some money set aside for an unexpected scenario.
Save. Open a 529 Plan and a higher interest bearing savings account for your little one. An automatic withdrawal from your checking account into this account will guarantee growth.
Other odds and ends. Start clipping coupons for baby items, immediately! You’ll be a lot more thankful for that stack of coupons when your bills increase and you have a new mouth to feed. If you’re afraid the coupons will expire soon, but you know you will need them and have the space, buy items ahead of time.
Also, see a tax adviser to see how your little one has now become your tiny tax deduction. He or she will be able to tell you what receipts to save and how the tax credit will offset your increase in expenses.
For more information about being financially ready for a baby, check out Fox 59's Bottom Line segment with FORUM's very own, Andy Mattingly. Click here.
with 0 comments
Categories: Planning, Saving