How to Prepare Financially for a Newborn
Friday, May 3, 2019, 6:00 AM | Leave Comment
Welcoming a new life into your family is one of the most exciting things you’ll ever experience, but it can also be one of the scariest.
Of course babies are adorable, but they’re also very expensive. For many people, getting finances in order is one of the top concerns.
Fortunately, there are plenty of ways to help alleviate some of the stress so you can fully enjoy your bundle of joy.
Keep reading to learn how to prepare financially for a newborn.
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Update Your Budget
You probably already have a pretty consistent budget, but with a baby on the way, it’s time to reevaluate your budget and set aside money for specific baby expenses. Remember to factor in all of the things you know you’ll need and leave some wiggle room for things that may pop up unexpectedly. Many recommend budgeting by trimester so that you can set goals that are both attainable and timely.
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Make a Plan for Child Care
The average American family spends between $6,000 and $19,000 on child care each year. So it’s important to figure out how you’ll handle child care for your baby, especially if staying home simply isn’t an option. Take some time to explore your options and find out what type of child care option will work best for your family.
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Review Your Health Insurance Policy
Even if you have health insurance, giving birth can still be expensive. By reviewing your health insurance policy you can gain an understanding of what is covered and what isn’t during the birthing process. This will give you time to prepare for anything you’ll have to pay out of pocket. Once the baby is born, you’ll always want to make sure to add them to your insurance policy.
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Cut Back Where You Can
You’ll be surprised at how many areas you can cut back your spending. According to House Method, one of the best ways to save for a newborn is to see where you can reduce costs. You may want to review your utility bills and see if you can reduce your monthly usage. Or, if you’re still paying monthly subscriptions for things you never use, now is the perfect time to cancel them and put that money towards expenses for your baby.
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Get Second-Hand Baby Items When You Can
Let’s face it, your baby is going to need a lot of things—even before it arrives. If you’re a first-time parent, you may be tempted to buy all of your baby items brand new. But purchasing things second hand can help you save lots of money on the essentials. In fact, there are plenty of items, like strollers and gently used clothing, that make great second-hand purchases.
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Preparation Is Key
As you get ready to meet your baby, it’s important to feel as comfortable and confident as possible so you can welcome them into a positive and happy environment. With the help of the tips above, you can set yourself up to be ready for all the great things parenthood has to offer. The more you prepare for your newborn, the better you’ll feel!
