7 Financial Tips For a New Baby

When you have a baby on the way, it can be easy to get caught up with setting up their nursery and buying cute baby clothes. Just don’t forget to take a few steps back, and see how your personal finances will handle your family’s new addition.

To help you, I have 7 New Baby Tips to think about, when you’re faced with planning for all the expenses that come with having a baby:

New Baby Tip #1 – Know Your Insurance and Medical Costs

The day you find out you are expecting is the time to take inventory of your insurance coverage and your anticipated medical expenses. Review the benefits you receive from your employer, and identify any gaps in coverage you may have to make up for. Then secure a pediatrician in your area who comes recommended by someone you know.

New Baby Tip #2 – Save For Maternity Leave

While many employers will grant you leave of absence after you have your new baby, some may not provide you with ongoing paychecks during this period. Do your homework to see which benefits your employer provides. Create a savings plan in advance to cover any loss of income you may experience.

New Baby Tip #3 – Plan Ahead for Baby’s Expenses

If this is your first child, it’s important to find out what you can expect your financial expenses will be. Visit family or friends who have had a child in the last 3 years, and get all the advice you can from them. Then look for reputable authorities online where you can get more information about the reality (and costs) of raising a new baby.

New Baby Tip #4 – Establish Baby’s Social Security Number.

The staff at your hospital should provide you with the proper paperwork for baby’s birth certificate. It is at this time when you can get baby’s social security number. If this is not provided, or you don’t have your baby at a hospital, be sure to contact your state’s family services department, and arrange to get both of these.

New Baby Tip #5 – Build and Protect Your Emergency Fund

Having a solid Emergency Fund is always important. Now with baby, it’s even more important. If you’re not saving regularly now, the time to start is now. If you do have a fund set aside for life’s unexpected expenses, leave it be, unless you have a true emergency. With a new baby, you never know what kinds of “emergency” expenses will come your way.

New Baby Tip #6 – Be Aware of How Baby Affects Your Taxes

With children usually comes tax breaks. Keep track of all your baby-related expenses, including any out of pocket medical costs. Then get with your financial planner or tax expert to create a plan for your expanded family’s tax situation.

New Baby Tip #7 – Make Adjustments to Your Budget

With a new baby also comes additional “Money Out” from your budget. From a mountain of Pampers to how quickly your child will grow, you’ll have to make room in your budget. Which likely means cutting in other areas of your budget will be necessary.

Getting clear on these important areas now, will ensure you have as few financial surprises as possible. Then you can focus your time and energy on making baby’s life great, without worrying where the money will come from.

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