Funding Baby: Financial Tips to Make Things Easier for New Parents

So you’re expecting a baby, or maybe you just had your first. Your bundle of joy is a wonderful addition to your family, but you might not realize just how much money new babies can cost. We want to help take some of that financial worry off your mind by offering some easy and useful tips that will make paying for baby significantly easier.

sunwest-federal-credit-union-funding-baby-2Create a pre- and post-baby budget
There are several new costs that pop up when you find out you or your partner is pregnant, as well as after baby comes, so creating budgets is going to be essential. Things to consider budgeting before the baby comes includes out-of-pocket medical expenses related to the pregnancy, car seat, crib, stroller, clothing, formula, and diapers. While some of these will drift into your new post-baby budget, you’ll want to have some on hand for the first days and weeks after baby arrives and certain normal activities go out the window. After baby arrives, make sure you factor in recurring expenses like diapers, food, child care, and more. You’ll also want to consider how much your budget will need to be adjusted for maternity and paternity leave.

Insurance
Before your baby arrives, or shortly thereafter, make sure you find a pediatrician in your health insurance network. Baby’s first doctor’s visit will come within a week of the birth, so having one already picked out will be helpful and make that first week a little less stressful. You’ll also want to make sure you add baby to your insurance policy within 30 days of birth to ensure that your little boy or girl is covered.

It might seem a little morbid to think about this after baby comes, so we recommend looking into life insurance policies before the big day. If you already have one, make sure you adjust it accordingly to reflect your new son or daughter. If you don’t have one, get one. You love your child, and can’t ever imagine not being with them, but sometimes the unexpected happens, and you’ll want to make sure that your child is protected and taken care of no matter what happens. Adjusting your will and beneficiaries goes hand-in-hand with this, so make sure you make those changes as well.

Emergency Fund
There is no way to predict what will happen in the future, so having an emergency fund set aside is always a smart way to go, whether you’re expecting a child or not. If you don’t already have an emergency fund, now is the time to start one. Whether you are the one who is injured, or your child, or something happens with your car or job, it’s a smart idea to have a rainy day fund set aside with at least three to six months’ worth of living expenses covered.

sunwest-federal-credit-union-funding-baby-3Plan for the Future
Setting up a college fund for your child is a bit of a given for many people, but many often to forget to plan for their own futures once a child comes into the picture. Don’t forget to keep funding your retirement as well as your child’s future. Their dreams and goals may become more important than yours in your ideas, but that doesn’t mean that your dreams should be neglected. Make sure you keep building your retirement fund so your kids won’t have to take care of you when you’re older—they’ll thank you for it, and you’ll be glad for it in the long run.

Babies are amazing, and we know that you’re excited to welcome this new addition to your household. Just make sure you follow these simple steps to make life with baby a little bit easier and a little more financially secure.