Having a Baby? Here’s How to Financially Plan

Getting the Wallet Ready for the Baby 

If there is ever a time when financial planning is exciting and imperative, it is when a baby is about to arrive.  Instead of making a plan to get rid of creditors, plan for a new life with a new bundle of joy.  Here are a few key items to take care of before the big day. 

Create a Post-Baby Budget 

Babies change just about everything, especially the budget.  Hopefully, the household is already running on a great money plan, in which case the transition should be easy.  If not, there is no better time to start.  Evaluate any changes to income as well as added expenses and assign what money will go where.  The budget will probably need tweaking along the way, but that’s just part of the fun. 

Try to Estimate Delivery Costs 

This can be difficult, but it is worth doing as much as possible to determine what is going to come out-of-pocket due to the delivery.  Insurance will cover many costs, but not all of them. It may be a good idea to give them a call to find out what they are.  Some forms of testing or certain care procedures are exempt, so be sure to know ahead of time.  This prevents surprises from coming in the mail a few weeks or months later. 

Pay Off as Much Debt as Possible  

This is a good idea any time, but this is an excellent opportunity to get serious.  Paying off debt is like getting a raise – it puts more money into the budget for reallocation.  Buckle down and make some sacrifices to knock out those credit cards, student loans or car payments.  There will be plenty of new expenses to juggle, so it’s best to give yourself as much wiggle room as possible.  

Make Important Purchases Early 

There are some necessities that every baby will need, and some of them can be expensive.  Try to have everything ready so that once the little one comes home, there is no added stress.  This can range from cribs and bottles to childcare sign-ups.