As you and your partner think about growing your family, it’s important to recognize that your priorities and financial goals will change. Having a baby is one of the most financially significant milestones a family wiꦇll experience, and it will likely change the trajectory of your financial plan moving forward.

That being said, there are steps you can take now to help prepare for the journey ahead, from considering the medical costs to 澳洲幸运5官方开奖结果体彩网:starting a college fund, and just about everything in between.

Here are 10 key financial steps to take now to prepare for the life chan🦋ges that come with growing your family.

1. Review Your Health Coverage

If you have 澳洲幸运5官方开奖结果体彩网:health insurance, check with your provider to see what 澳洲幸运5官方开奖结果体彩网:prenatal care is covered and what you’ll be expected to pay out-of-pocket. Medically necessary costs relating to the pregnancy and birth must be covered by most health insurance plans, but additional services will likely be at your own expense.

Keep in mind, just because a service is “covered” by your provider doesn’t mean you won’t be paying for it. In most cases, you’ll still be required to pay for most services until your 澳洲幸运5官方开奖结果体彩网:annual deductible has been met, or if a 澳洲幸运5官方开奖结果体彩网:copay or coinsurance is required.

In a few states, pregnancy confirmed by a medical professional can count as a 澳洲幸运5官方开奖结果体彩网:qualifying life event for a special enrollment period. Otherwise, you’ll need to wait until the baby is born to change your plan or obtain coverage through a special enrollment period (if you don’t have health insurance). Uninsured individuals can check for eligibility through 澳洲幸运5官方开奖结果体彩网:Medicaid or CHIP, both of which raise the income limits for pregnant women (making it easier for more individuals and families to qualify).

2. Plan for Family Leave

While the United States does not have federally mandated paid parental leave, eligible employees may be able to use 澳洲幸运5官方开奖结果体彩网:Family and Medical Leave (FMLA) to take up to 12 weeks of protected, unpaid time from work.

Check if your employer offers any 澳洲幸运5官方开奖结果体彩网:paid parental leave or if you can use accrued vacation or sick days. 澳洲幸运5官方开奖结果体彩网:Short-term disability benefits may also help bridge the gap.🌃 The key is planning ahead for any period of unpaid time off.

Because paid time off is not a guarantee, you’ll need to consider how a pay gap will impact your financial well-being. In preparation, you may need to set more aside in savings, for example, a⛄nd speak to your employer about your options. 

3. Plan for Baby Expenses

There’s no denying it, 澳洲幸运5官方开奖结果体彩网:babies are expensive and they require lots of accessories. While you may be able to offset some costs with th🐻e help of a baby shower or gifts from loved ones, you’ll still need to plan to buy quite a bit in preparation for your baby’s arrival (and in the months following their birth as well).

Some high-ticket items could include:

• Formula
• Diapers
• Stroller
• Crib and mattress
• Car seat
• High chair
• Baby clothes

In the future, you’ll also need to consider additional costs like childcare, baby food, baby gates and other safety equipment, toys, and making contributions to a 澳洲幸运5官方开奖结果体彩网:college savings fund.

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4. Plan for Childcare

Childcare, aside from insurance and medical bills, will likely be one of your highest costs associated with starting a family. Your options for childcare vary greatly, depending on where you’re located, your family status, and your goals or priorities. That being said, the average annual 澳洲幸运5官方开奖结果体彩网:cost of childcare in America for infants is around $17,171, over 19% of a median family’s income.

Considering the cost of childcare can easily exceed a family’s rent or mortgage payment, it’s worth considering your most realistic plan of action. If you have pare๊nts or other loved ones nearby who want to help out, this can certainly reduce the cost (even if they watch the child for just one day a week). 

If you plan on leaving the workforce to stay home with your child permanently, consider how a drop in 澳洲幸运5官方开奖结果体彩网:household income will impact your ability to address your new financial obligations and ongoing♕ long-term goals (like retirement savings or homebuying).

5. Create an Emergency Fund

Everyone should have an 澳洲幸运5官方开奖结果体彩网:emergency fund, but it becomes increasingly important oไnce you prepare to start a family. Right now, it’ll be hard to predict exactly how your f﷽inancial situation will change.

You can estimate your medical expenses and price out baby equip♒ment, but ultimately, you should prepare for the unexpected. This could include a sudden job loss, car repairs, the need to buy a bigger home so𒁃oner than expected, an economic downturn, or even a set of twins. 

6. Plan to Get꧟ a Social Security Number for Your Child

Your newborn will need a 澳洲幸运5官方开奖结果体彩网:Social Security number. You can indicate that you’d like to apply for your child’s Social Security number while you complete the birth registration paperwork in the hospital.

Once the Social Security Administration assigns your child a number and mails out an official Social Security card, you can use that to do things like apply for health insurance for the child and 澳洲幸运5官方开奖结果体彩网:open a bank account in their name.

ᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚ 7. Update your Life Insurance and Disability Insurance

If you have insurance policies, they’ll need to be updated to reflect your changing family status.

Consider whether your existing 澳洲幸运5官方开奖结果体彩网:life insurance, for example, offers enough coverage to address the need🐼s of your surviving spouse and child (or children). This could include large expenses like the mortgage payments and utilities, childcare, school tuition, and future college costs.

You may be enrolled in your employer’s group life or 澳洲幸运5官方开奖结果体彩网:disability insurance already. If that’s the case, speak to your employer about purch🎶asing additio𒁏nal coverage or finding a separate policy that better suits your needs.

8. Open a Savings Account for Education

The cost of college continues to rise, and if you’d like to help offset your child’s future educational costs, now’s the time to start saving. As soon as you’re able, open an education-focused savings or 澳洲幸运5官方开奖结果体彩网:investment account, and star🍸t 📖setting aside what you can (while still keeping up with your other financial priorities and long-term savings goals).

A 529 plan is a state-sponsored savings plan specifically designed to help families save for educational expenses in a 澳洲幸运5官方开奖结果体彩网:tax-advantaged manner, since withdrawals may be tax-free if used on qualifying expenses.

You can also establish a 澳洲幸运5官方开奖结果体彩网:Uဣniform Transfers to Minors Act (UTMA) or 澳洲幸运5官方开奖结果体彩网:Uniform Gifts to Minors Act (UGMA) account, which provides more spending flexibility for your child once they become a legal adult (though these accounts don’t come with the same tax advantages).

9. Update Estate Planning

Once you have a child, your 澳洲幸运5官方开奖结果体彩网:estate planning documents will need to be updated. In your will, for example, you should designate a 澳洲幸运5官方开奖结果体彩网:legal guardian in the event you and your spouse die. You can also add your child as a beneficiary of your estate. You may also want to consider identifying another family member or a trusted individual as a trustee of your child’s inheritance, should you die while they are still a minor.

If you have a 澳洲幸运5官方开奖结果体彩网:financial power of attorney, update iꦺt to ensure your selected individual can make financial deci🍎sions for your child in the event you become incapacitated as well.

10. Start Saving for Future Expenses

Perhaps the most important step you can take is to start saving now for future expenses, including those that feel impossibly far down the road. Not o🌳nly will you incur expenses during the pregnancy and childbirth, but you’ll need to consider things like higher healthcare costs, time off work (especially if one spouse is leaving their job for good), and childcare costs—in addition to your other recurring financial obligations and bills.

You’ll also need to take into account the risk of 澳洲幸运5官方开奖结果体彩网:inflation and the impact rising prices will have on your expenses over time. The more you’re able to set aside now, the more prepared you’ll be to handle the uꦫnexpected and on🎀going costs of having a child.

The Bottom Line

As you consider the logistic🦄s of having a child, don’t underestimate just how much your family’s finances will change. From prenatal care into infancy and up through college, it can easily cost thousands of dollars each month to provide everything your family needs to continue growing and thriving.

Start saving early, leve🅷rage the power of compounding earnings, and keep your protection plans up-to-date to ensure your family is well-cared for now and in the future.