Getting prepared for a baby isn’t just about getting baby clothes and getting heartwarming ultrasound pictures, it also involves a lot financial preparation. In this article, we discuss important financial tasks to tackle when you’re bringing a new member to the family.
Preparing for a baby is a thing of stages, pre-delivery, delivery and post delivery. The following stages can guide you on steps you should be aware of when you’re preparing for a baby.
Draft a pre-baby budget
Preparing for a baby means you’ll be spending out of pocket medical costs. You need to understand how your income will be impacted in the coming months and make the necessary adjustments in your budget. With a pre-baby budget list, you’ll have in mind expenses you’ll need to tackle so you’re not caught unawares. This will help keep your finances in line for the stages ahead.
Create a post delivery budget
Recurring costs such as baby food and diapers will be part of your expenses for a few years. It’s advisable to include them in your post delivery budget so you aren’t caught off guard. Other necessary expenses you know or think would be popping up after your baby as arrived should also be included in this list.
Start or Check your Emergency fund
If an emergency fund is not already part of your plans, now is the time to make such plans. You never know when emergencies pull up. You may not have disposable income to cover for unexpected expenses. It’s recommended to have at least three to six months worth of living expenses to cover for emergencies. Starting an emergency saving fund is advisable if you don’t already have one..
Include your Child to your Health Insurance
Most health insurance packages have inclusive policy of adding new family members to their plan. The first few months for babies are very delicate, hospital visits will be frequent in the first few months. You don’t want a sick child without coverage. If you don’t have a health insurance plan, consider one right now and you’ll ensure coverage for your child.
Make plans for child care.
After some months, you’ll be considering returning back to the work force. You’ll need to get the best daycare for your child. You will need to carry out interviews for the best nannies and daycare for your child. You have to make child care preparations earlier so that it doesn’t interfere with your plans of going back to work.
Adjust your Beneficiaries
In your existing life insurance policy you’ll have to ask for your beneficiary list and make the necessary adjustments. If you would want your child as your beneficiary, you’ll need t make the adjustments so that it stays effective and your beneficiary will have access to the funds when necessary. Just get in touch with your insurer and this will be sorted out.
Write or Adjust your will
It’s all part of the plan of ensuring that your child is well taken care of in the event that you’re no longer around. Your will will designate a guardian for your child. If you don’t, the courts will have to designate a guardian for your child. So make that adjustment now.
Save for their Education
The cost of quality education keeps increasing but you can make it bearable when you prepare early for it. When you choose to save for your child’s education even before they get to the stage, you’re assuring peace of mind for yourself. So when when tuition fees start coming in.
Planning for a new member of the family comes with a whole lot of responsibilities, and it’s easier to handle when you have fore knowledge of what to plan for. Good luck!