Preparing for a baby brings joy to the family. The thought of having a new family member is heartwarming. The pregnancy journey is more than going for the usual check-ups and taking ultrasound photos. Much as every process is essential, it would be best to make early financial preparation to help you end the journey peacefully.
The first few weeks before and after the baby’s arrival can be the most hectic season. Prioritizing personal finances before the pregnancy comes or the child will save you many frustrations in the long run.
It’s how smart you prepare during this time that determines how well you end the journey. Below are the crucial tasks you need to tackle to help you set a firm financial ground.
Consider a Comprehensive Insurance
If you have an insurance cover, you need to ensure that you choose a pediatrician that allows your insurance network. That way, you’ll be safe from paying hefty medical bills from your pocket.
After the baby comes, you’ll also need to make appointments with your doctor and use the insurance cover to settle medical bills. But if you have no coverage, it’s high time to consider getting one as soon as possible.
• Talk to your colleagues, friends, and family to give you the best insurance recommendations.
• Once you secure one, check with pediatricians around to a doctor within your insurance network.
• Verify with your insurance company to ensure that the information provided by the pediatrician is accurate.
It’ll help you avoid confusion and stress during delivery and doctor appointments. You’ll also be sure that the doctor will not give you unexpected out-of-insurance charges. Review life, health, and disability insurance just in case anything happens. If you’re employed, you can purchase the insurance through your employer.
Plan for the Maternity and Paternity Leave
When taking a paternity or maternity leave, it’s crucial to analyze how much you and your partner (if you have one) will get paid during that time.
Some companies can choose not to pay employees, and this can hurt your financial position. You may not have enough money for all your bills and may end up straining with your parenting journey.
Find out from your company if you’re eligible to receive payment during the maternity or paternity period. You’ll be able to create a fall-back plan to avoid financial hustles.
Your company likely has policies governing this area, and it’ll be useful to counter-check on your employment letter. If not sure, ask your manager so that you get a clear understanding. Also, know what your state law says about paternity and maternity leaves.
Create a Pre-Baby Budget
First-time parents can find it hard to draft a pre-baby budget due to lack of experience. However, whether it’s your first time or not, you need to create a budget before your baby arrives.
After analyzing how much you’ll spend from your pocket in terms of medical bills and the impact of the situation on your income in the coming months, you’ll adjust your budget accordingly.
Baby expenses can be extreme. If you do not prepare for it, you’re likely to get frustrated when the baby arrives. Create a budget for things like a baby stroller and a clothing bag, among other items.
Also, it doesn’t harm to purchase second-hand items. It’ll help you save money yet, getting quality baby items. Estimate the expenses and determine the essentials, especially if you won’t have an income as you stay home with the baby.
Start an Emergency Fund
Rainy days are inevitable, and some come unexpectedly. That’s no difference between pregnancy and prenatal. Although you could have an overview of whatever is needed, you may not have the ability to control other occurrences that needs funding.
Raising a child comes with many uncertainties. Meaning, you need to have concrete financial backing after delivery. Now is the time to start an emergency fund. Ensure that you have a three- to six-month financial plan that covers all expenses.
Draft an Estimate for Prenatal and Delivery Costs
Some employers only provide insurance cover for an uncomplicated birth. Meaning, in case you or the baby get complications during delivery, you’ll need to dig in your pocket to pay for the extra charges.
Inquire from your HR manager if your insurance company covers out-of-pocket costs for prenatal and postnatal cases. If not, consider putting the expenses into a personal financial plan so that you’re able to pay for the expenses.
Although pregnancy can be a joyful journey, it can be a daunting process if the parents fail to prepare for the pregnancy and after delivery. It’s no doubt that a new family member comes with additional responsibilities. Therefore, keep in mind the financial aspects by preparing a to-do-list to help you set the record straight and make things run smoothly.