Planning for a baby can be an exciting and busy time for families. Check out the tips below for financial steps to follow before baby arrives.
Review your benefits
Thinking about having a baby? Review your health care options and ensure that you are adequately covered before you’re even pregnant. Take advantage of open enrollments at work to sign up for the best coverage.
To better understand what costs you’ll have to pay for your health care during and after pregnancy, review your health care benefits to find out what tests, appointments, screenings, etc. are covered and what isn’t.
If you have employer-benefits, ask about your company’s family leave policy (both partners should ask). Not only can this tell you how much time you’re able to take off, but it can help you understand your income situation for that time as well. Additionally, ask about and research the Family Medical Leave Act to understand your options.
Find out if you qualify for additional benefits, such as a dependent care account that allows you to put aside money to be used for child care on a pre-tax basis.
If you don’t have it already, get life insurance
Now that you’re going to have a dependent, you’ll want to make sure your child is taken care of if something should happen to you. Check with your employer first to see if they offer life insurance.
Talk income
Talk with your spouse/partner to determine your income situation after the baby arrives. Will someone stay home full time? Reduce hours? Work from home? How will these changes impact your household’s income?
Weigh the financial pros and cons of having one parent stay at home
Yes, it can help save on day care costs, but it also reduces your household income and could impact social security and retirement benefits in the long run.
Look into day care
Begin researching your day care options and costs if you’re both planning to work after the baby is born.
Take care of your finances now
Pay down as much of your debts as possible. By paying down debt before the baby is born, you can use the money you were making in payments to pay for the added costs of baby.
Revisit or start following a budget now
If one partner is planning to stay at home after the baby is born, try living on one income during pregnancy to see what works and what doesn’t. Use the second income to pay down debts or save for the baby.
Use our fillable Baby Budget Worksheet to get started!
Save as much as possible now
Before you have a baby, you should ideally have an emergency savings that covers 3-6 months of expenses. But with a baby, you want to save a minimum of six months of expenses, if not more.
Forget registering at multiple stores and returning multiple gifts! Open a myBaby Registry at A+FCU and your family and friends can safely and conveniently gift cash for you to use as you prepare for your bundle of joy.
Sponsored By: A+ Federal Credit Union
