The arrival of a new baby can be exciting and expensive. A single baby can mean a lot of changes to family finances and expenses. I mean, diaper is expensive!
Here is how to financially prepare for your family’s newest addition before he or she arrives.
1. Health Insurance
Without health insurance, just one illness or accident can throw the entire family into chaos and debts. We do not pray for such but it is better to be prepared than be sorry. Investigate your insurance options and opt for the highest plan you can afford. The higher the plan the better covered your family is.
2 Buy in Bulk
Bulk buying is always cheaper. Do you have some lose cash in the house, stock up on diapers and wipes. You won’t regret it!
3, Budget Allocation
Bye-bye impulse spending. Hello Budgeting! Whether you are a first time parent or it’s been a while since your last baby, you need to have a proper budget allocation to avoid impulse buying and spending on wha you don’t need. Baby shopping is so much fun, but it is very easy to get caught up in buying everything that catches your eyes, that you won’t ever use. You need to make a realistic budget and stick to it.
4. Child Care
Are you and your partner going back to work after the baby’s arrival? Then you need to plan child care. The cost will vary based on the quality you want, where you live, age of your child and how much care you want and also the duration.
5. Start Shopping Early
Shopping early is always a life-saver. Start stocking up on the baby essentials before the baby arrives. It will reduce your expenses and pressure when the baby comes. I promise!
6. Start a saving account for your baby
It is never too early to open a kids save account. Look for one that has no fees, no balance minimums and good interest rate. You can link it to your own account and set auto debit to automatically transfer funds into it every time money is paid into your account.