Ways to Financially Prepare For a Child

Congrats! You are looking to welcome a new baby into you and your partner’s life. There’s nothing more exciting than checking off all the new things you’ll get to do with your newborn when they come home and of course the rest of their life! Although bringing home a newborn can be thrilling, we understand it can be stressful as well. It is important to consider the finances that come with raising a child and being prepared to take on that burden. If you are considering having a child, you may want to read through our article to ensure that you are aware of the financial aspects of having a kid.

Plan for maternity/paternity leave or time off work

How much time you and your partner get off work and whether you’re paid during that period is important to consider. If you have a full-time job they will grant you paid maternity leave so you’ll be compensated the entire period. However, if you wish to take more time off than that, you’ll need to think through how it will take a toll on your finances. If you or your partner decide that they want to take some time to be a stay at home parent, then that is a very valid decision, but should be discussed beforehand so you can plan accordingly!

Develop a savings account 

A baby will come with plenty of expenses that you should be prepared for. For instance, their college fund, if you wish to enroll them in private school, or basic needs like food and clothing. Healthy foods for your baby like organic baby formula can be expensive! Overall, the child will cost you a lot of money that you should start planning for right now. If you are prepared with enough savings you won’t worry too much when the child comes.

Choose a pediatrician within your insurance network

Of course, you’re going to need a pediatrician who will take care of your child’s health but also is within your insurance network. You can either figure this out through your insurance or by checking with the doctor’s office you wish to go to. Talk to a local friend or family member to receive recommendations in your area!

Begin planning for child care 

Finding the right nanny or sitter can take weeks or even longer. Start planning now and try to figure out days you might need the most help. Get this process started long before your maternity leave is over because it will go by quickly. If you are going to put your child in an afterschool program or social daycare system, you will most likely have to apply through the program and get accepted which is another task in itself.

Make sure most your debt is handled 

Although debt can be tricky and can take years to pay off, it is important to have a grasp on your payments and have a plan for how you are going to tackle the debt. You don’t want to put off your debt just because you have a child who is coming into the picture. Talk to your partner about a similar situation of theirs and try to understand where they are at with the same thing.

Purchase a house or safe space to raise a child

In order to raise a child, they should grow up in a safe environment and have enough room to play, eat, and sleep at the very least. It may be good to think about your housing situation before you bring a child into this world. Questions to consider when you are looking to buy a house include neighborhood, school district, and size. You want the very best for your baby and their future!

Purchase life insurance and create a will 

Purchasing life insurance and creating a will is not only smart planning, but they can help provide comfort knowing you have a plan in place to protect and take care of your family.  On top of that, this is a great time to review your plan and update any beneficiaries. It is important to put together a plan that you feel comfortable with and no one else!

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