Financial Tips

Life and Credit : Financial Planning when Having a Baby

Financial Planning is Key When Having a Baby

So I hear you're having a baby! If you've recently discovered that you are expecting an addition to your family, get used to hearing that from your family and friends. They'll call to congratulate you. They'll call to offer their support. They'll call to ask how you are feeling. But most of all, they'll call to tell you how much your life is about to change. Keep in mind that having a baby is like any other major change in that planning ahead makes the transition a lot easier.

In planning your personal finances for the baby's arrival, there are several issues you need to consider. It's time to get out a pen and paper and work out a budget that you can use once you've brought the baby home. Remember, these figures are in addition to our regular weekly and monthly bills.

First of all, a new baby means an extra mouth to feed, as well as diapers and baby clothes. Also, you'll find the miscellaneous expenses including paper towels, tissues, and detergent will all increase. Even your utility bills will go up because you're home more often.

Additionally, there are some one-time purchases you might want to consider including a crib, car seat, monitor and baby swing. Of course, many expectant mothers receive these as gifts at a baby shower. But don't forget yard sales, trading posts, and consignment shops. Just be very careful in what you buy, and make sure the articles are newer and up to code.

If both parents plan to work after the baby is born, start calling daycare centers as early as possible, just in case you have to get on a waiting list. Daycare costs can range from $50 or $60 a week in someone's home to $125 a week or more for an established center. Ask friends who have children to recommend a good center, and call the state agency that regulates daycare centers to get their rating. Just don't delay. It's important that you plan for this new weekly cost in your budget.

Another important area for your post-birth budgeting is health care. How much will your health insurance premium increase by adding the baby? Make sure you discuss this with your employer to find out what the family rate is, and specifically, how much more will be taken from your paycheck every week.

Once the baby is born, you can plan on an occasional visit to the pediatrician, both for regular check-ups and minor illnesses. Some parents get very lucky and experience very few health problems with their newborn beyond the minor colds and infections all babies get. Other infants need more attention from their pediatrician. So, it's really very difficult to decide the amount to be budgeted. However, depending on your deductible or co-payment, you may need to budget an additional amount each month just for the baby's medical care, at least for a few months.

Now for the good news. Almost every expectant parent, especially those expecting their first child, worries about money. Most discover after the baby is born, though, that it isn't as hard as they thought.

Having a baby forces certain changes for the parents, usually resulting in a less expensive lifestyle. You don't go out as often for dinner or a movie. But rest assured: you'll have no problem finding something to do once the baby arrives.