If you’re thinking of starting a family in the near future – congratulations! Speaking from experience, having a child is one of the most rewarding and life-changing things you’ll ever do. That said, having a child can also be expensive. Follow our tips below for suggestions as to how you can prepare yourselves financially for this exciting time in your lives.
Understand Your Healthcare Benefits
Before having a baby, make sure you understand what is and is not covered by your current Healthcare provider. According to the International Federation of Health Plans and the Economist, the average cost of giving birth (without complications) in the United States is $10,808. While most insurance plans will cover a significant portion of the expense, you’ll want to know your exact out-of-pocket liability prior to having your baby.
If you’re not sure what is covered under your current plan, contact your healthcare provider for a detailed explanation. Additionally, reach out to co-workers who’ve recently given birth to see how they adjusted their coverage to minimize the out-of-pocket liability.
Upgrade Your Family Vehicle
If your way of life necessitates owning a car but you don’t currently have a safe, dependable one (or one that fits a stroller in the trunk) you may want to evaluate your options. Do your research to determine which vehicle will suit your new lifestyle and your new budget.
Plan Ahead for Childcare Expenses
According to Care.com, the average cost of center-based child care in the United States ranged from $6,615 in Arizona to $19,805 in Washington, D.C. Another alarming fact? 33% of families spend 20% or more of their income on child care. While you have plenty of options for providing childcare for your new addition, one thing is certain: it will cost you. Make sure to discuss your options with your spouse prior to the arrival of your little one and work this new expense into your budget.
Plan Ahead for Your Maternity/Paternity Leave
Every maternity/paternity leave situation is different. Connect with your HR partners at your company to best understand your options for your leave, as well as what percentage of your income you’ll receive during this period. While some companies have recently adopted more favorable policies for paid-leave, you may still be among the many who will have to factor in unpaid-leave time into your post-baby budget.
Update Your Budget
Babies require an amazing amount of “things”. Prior to having your baby, you’ll want to be sure to purchase the necessities (i.e. stroller, car seat, bassinet, bottles, etc.). Once the baby arrives, you’ll notice a sizable shift in your expenses. You’ll be purchasing more diapers than you ever imagined, and will undoubtedly take advantage of the many discounts and promotional offers both online and in retail stores.
Choose a Pediatrician in Your Network
Before having your baby, you’ll want to identify your future pediatrician. The first place to look? Your provider’s list of available pediatricians in your immediate area. By all means, choose a pediatrician that you like, trust, and who is going to provide top-notch care for your little one. Entrusting your little baby’s health care to a qualified provider is absolutely critical so be sure to choose a pediatrician who you feel comfortable with. That said, anytime you choose a provider who is outside of your medical insurance network, you’ll incur extra costs. Co-pays and other medical fees can add up, so having a pediatrician within your network is going to save you money in the long run.
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