A Financial Checklist for Expecting Parents

A little pregnancy test does have the power in it to totally change your life – expecting a baby soon in the family will entail additional expenses and you will need to prepare for it with all your might. The change is not only physical, it is also emotional, as well as personal and financial. You will need to distribute the expenses under different heads as you will need to plan for various kinds of additional expenses.

Checking up on your insurance, creating funds for education and safety are not just items on the checklist now, those are your duties. Before the baby arrives, you should take a look at the list below, where we have listed distinct measures you need to adopt and ways of managing expenses that will follow once the little bundle of joy gets dropped off by the stork.

Common Baby Expenses

As a baby makes its way into the family, you will have cater to the requirements that come along with it. Some of these will be for clothing, diapers, baby furniture and baby formula to mention a few.

Tips to save your pennies

You will need to cut on expensive groceries and clothes – the ones that you can live without at the moment, and focus on the ones that are absolutely necessary especially for the baby.

Also, you can restrict your eat outs, trips etc. and the expenses thus saved can be diverted towards managing daily expenses of your child.

Healthcare and Insurance Expenses

A major part of the finances planned for the child goes in for managing the healthcare expenses of the child. You need to analyze and choose which insurance options will be most favorable for the baby according to the lifestyle that you can afford. In some cases the employer has an insurance policy for the entire family, including the newborn child.

However, in some case the healthcare expenses are not met by the employer, and you will need to have an insurance policy ready before the arrival of the child. Plan in advance and make the life of your baby safe and secure. As your child attains the age of 18, the insurance policy will mature, thus taking the care of the child’s educational needs. And you will be amazed at how little planning along the way helped you and your child reach great heights in future.

Leave from Duty

In some cases, the employer at certain jobs might give a paternity leave for some time. If both of parents are working, the mother might need to take a break from the job for a year or less in order to physically recuperate from the stress of childbirth, and also be there for the child 24×7 to take care of it.

This could bring additional burden for the family as expenses will have to be managed from one person’s income. As expecting parents, you should plan for this scenario way in advance as your expenses are sure to only bound upwards once the baby comes. While on maternity leave, the mother has the option to look for some work from home or part time job option to meet the additional expenses that are to be incurred.

Expenses for Medical Emergencies

As a parent, it is expected of you to be on top of any medical-illness related savings, especially when it comes to your child. Children are normally very susceptible to illness and you will need to keep a separate fund for any major eventuality, regarding any ailment that occurs.

Or else, you will  be faced with nothing but the stressful option to loose a chunk of your money at one go, once your child contracts a disease or faces an accident and needs immediate medical attention, which could be really expensive at times – if you do not know how to prepare for it. Always be ready for the worst, at least financially and ensure that your child leads a hale and hearty life.

Future planning

Planning is imperative when the future of your child is at stake. As the child grows up,  additional expenses in form of school fees, tuition fees, music and swimming classes among others and many more expenses will crop up eventually. You will need to prepare for this as soon as the baby let’s you know that he or she is coming. For bigger financial goals, small investments need to be encouraged by you and your partner and you can invest in some mutual funds too. These investments

call for small inputs every month and will not cut a hole in your pocket. Yet somehow, you will be rewarded graciously sometime down the line in future – fortunately for you and your child’s sake.

Emergency Fund

In today’s financial market, anything is possible – you might find yourself kicked to the curb in a larger effort to downsize the company for its own sake. Finding a new job may or may not be difficult for you, but having a backup plan to counter the negative effect of an employment loss is not a dumb plan. Try to set up an emergency fund for the bad times like these – if they should ever happen.

With a baby on the way, you are not alone – you are now responsible for the well being of someone other than you. Setting up an emergency fund in case of a financial breakdown will only positively bolster the protective guardian instinct within you.

Before the baby arrives

Once you know that you are expecting, the first thing to be on your checklist is to schedule a birthing chart – keeping in mind the health insurance policies you and your partner have.

Choose a doctor and hospital that you can afford, and if possible, bump the insurance money by a little. Make sure you have enough money saved to buy the medicines and appointments required during pregnancy that is not supported by the health insurance.

Accommodation finance

Once a baby comes, you will naturally be pushed to find bigger places to have your child grow up in a healthy manner, and that would require moving from a smaller apartment or flat, to a bigger and more roomy one. A child needs open spaces to explore as he or she grows up, and as your family keeps growing so will the need for more space.

Make sure you save up enough money to put down as a deposit for a bigger space, or have a decent enough  credit score to apply for a loan on one. Having a child is a big enough commitment on its own, and as a parent, it is upon you to provide the best enough care.

Do not forget that it is your responsibility to furnish the child a comfortable living environment along with the option to pursue a bright future, no matter which path he or she chooses to go. Plan for the same and ensure that the child has a tension free future. And so should you, with less tension, if not at all free from it.