Health Insurance
If you have to pay for health insurance, you’ll need to consider all the costs of raising a child. The first thing you’ll need to consider is your birthing plan. Consider the costs of medical care during labour and your hospital stay. Does your insurance cover you for everything? You’ll then need to add your little one to the insurance policy to make sure your baby is covered in the event of a medical emergency.
Car Insurance
When you and your baby are ready to go home, the first place your baby will go is your car. The journey from the hospital to your home can be an emotional and exciting one. Finally, you get to settle your child in its own bed and accept visits from family and friends. So, it’s important that you’re protected during that journey. Make sure your car insurance is up to date. If you’re in an unfortunate accident at any point with your child, the quality of your personal injury attorney will make all the difference. Find someone with experience and recommendations.
Household Budget
The budget you’re used to before the baby will dramatically change when baby arrives. They may only be small, but they require a lot of financial commitment. You’ll go through tons of diapers, wipes, formula and clothing. Not to mention any medical supplies, like teething gels or pain killers. If you have a disposable income, start saving it a few months ahead of the birth. It can help to cover essentials as well as any loss in income due to maternity or paternity leave. Many new families can find the financial adjustment difficult to deal with initially, but once you understand how much you need to set aside per month for your child, you’ll begin to get into a good financial routine.
Life Insurance
Many young couples don’t bother with life insurance, especially if each of them is earning a good wage. However, the circumstances change when a child comes into the picture. You now have a little human who is relying upon you to survive and thrive. If anything were to happen to either parent, that child may be robbed of the financial future you have planned. Having a life insurance policy in place will mean that your child is provided for if the worst should happen.
Child Care
No parent really wants to face it, but there will come a time when maternity leave ends and you may have no choice but to leave your child in the care of another while you go back to work. There are two downsides: the first is that you’ll miss your child and the second is that you’ll need to find the money for child care. You need to weigh up how much money you’ll lose and whether it’s worth returning to work. Either way, many families face a financial loss.
Child’s Future
A college education doesn’t come cheap, and there are thousands of students fighting for the same scholarships. A child’s future is something you need to start preparing for as early on as possible. Who will pay for your daughter’s wedding when the time comes? There are so many wonderful milestones that require you to put money away. Start a savings account early and put in whatever extra cash you can gather together. You’ll be thankful for it one day.
Events
It goes without saying that your child will have a birthday every year. Add that to Christmas, Easter, graduations, prom and every other event in a child’s life and the financial implications for parents are downright scary. However, if you prepare for these events in plenty of time, you’ll spared the heart attack you may have when you find out how expensive these occasions can be. Take at least a few months before each event to prepare financially.
Raising a child can be a financial struggle at times, and there may be times when your child has to go without or doesn’t quite get what they want. Don’t worry, they’ll survive!
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