Having a baby is a major life event that can be both exciting and overwhelming. Finances are an important aspect to consider when preparing for a new addition to the family, as the costs of raising a child can add up quickly.
When my husband and I found out that we were expecting, we checked off all the boxes as far as buying the necessary items, preparing our home, going to the routine doctors’ visits, etc. What we did not do, was prepare ourselves for the weekly expenses we would take on after the baby was born. We did not make a budget for ourselves while I was pregnant, and we were quite surprised how much our expenses changed after our baby was born.
Since then, we have sat down together and made a budget for our family. We have made weekly, monthly, and yearly budgets. We have also planned on how we will continue to save for ourselves and save for our son’s future. Everyone’s expenses are different, so you must find what works best for you and your family, no matter what that may be! Here are a few tips I learned along the way to help you along your journey.
Make a budget.
To create a successful financial plan, it is crucial to have a clear understanding of your current financial situation. One effective way to achieve this is by creating a budget that outlines your monthly income and expenses. If you don't have an established budget, Budgeting For Beginners has some great tips and a template to help get you started.
Save for medical expenses.
Medical expenses can be one of the biggest financial challenges when it comes to having a baby. Start saving for these costs as early as possible, so you'll have the money on hand when you need it. You may also want to consider purchasing a high-deductible health insurance plan, which can help you save on premiums but still provide coverage for unexpected medical bills. Do not be afraid to talk with your medical provider to see what type of payment plans they offer. This could be for your appointments during the pregnancy, your labor and delivery, your hospital stay and the appointments for after your baby is born.
Plan for time off work.
Depending on your job and employer, you may be entitled to paid or unpaid time off work when you have a baby. Plan ahead for this time off by saving money in advance or speaking with your employer about your options. During your maternity leave, make sure to ask for help when you need it. Whether that be from your spouse, a parent, grandparent, sibling, friend, neighbor, or even your medical provider. Never be afraid to speak up when you feel like you could use some extra support. Everyone is affected differently when it comes to having a baby and no two experiences are ever the same. When the time comes for you to return to work, continue to lean on those around you for support. It takes time to navigate through what your new work-life balance will look like, and when you think you have it figured out, something is bound to change. But always remember, there is nothing wrong with asking for help when it is needed. It takes a community to raise a child!
Consider your housing situation.
If you're planning to have a baby, it's a good idea to think about your current housing situation. Do you have enough space for a new family member? Is your house safe and baby-proofed? Are you in a location that's convenient for raising a child? If not, you may need to consider moving to a larger home or a different neighborhood. Our expert team is here to discuss your housing situation and help you, whether you just need a little upgrade to your current space or you're ready for a new one.
Start saving for education.
Education costs can add up quickly, so it's a good idea to start saving for your child's education as early as possible. While there are a variety of options when it comes to saving, we're big fans of the Osgood Bank Youth Savings Account. A Youth Savings Account is an excellent tool for setting aside funds for your child's future education. Not only does it provide a secure place to store birthday and Christmas money, but it also offers the opportunity for your child to earn a bonus deposit as they excel in school. This account is designed to grow with your child, teaching them valuable lessons about budgeting as well as ensuring their educational expenses are taken care of when the time comes.
Plan for future expenses.
Having a baby means that you'll have additional expenses, such as diapers and wipes, formula, baby food, clothes, gear, and toys, in the future. Start saving for these costs now so you'll be prepared when they come up. Make sure to request must-have items on your baby registry. Secondhand items, such as clothes are wonderful because babies grow out of their clothes very quickly.
Prepare for childcare expenses.
If you plan to return to work after having a baby, you'll need to consider the cost of childcare. This can be a significant expense, so it's important to start planning for it in advance. Research different childcare options, such as daycare centers or in-home caregivers. Finding the best fit for your family's needs and budget is crucial. Making sure you choose the route that is going to make you as parents feel the most comfortable is by far the most substantial factor. You must remember, this caregiver will be a key impact when it comes to how your child is being raised. Be sure you are choosing someone that you fully trust, and you know will raise your child as their own. Also, remember to plan and find childcare as early as possible because most daycare centers or in-home caregivers will have a waiting list. If you do choose to go to a daycare center, make sure your tax advisor is aware because this expense may be eligible to use as a write off on your taxes.
Review your insurance coverage.
It's a good idea to review your insurance coverage before having a baby, to ensure that you have the coverage you need. This may include health insurance, life insurance, and disability insurance. Also, it is important to make sure that you have an updated will with guardians listed in the instance that something tragic would happen. Having a plan in place shortly after your baby is born is one of the smartest things you can do as a parent.
Seek financial advice.
If you're feeling overwhelmed by the financial aspects of preparing for a baby, don't be afraid to seek help. Consider speaking with a financial planner or advisor who can help you create a plan to meet your financial goals. The team at Osgood Bank is always ready to discuss your goals and help you develop a plan to achieve them. You can schedule a call with one of our experts at your convenience. 
Don't overthink it.
During my pregnancy, I read too many articles and followed too many pages on social media that told me everything my baby "needed", which led me to buying a lot of unnecessary products, some of which I never even used. Well, truth be told, what I found out during the first few months of my baby’s life was simply: babies do not need a lot of “stuff”. They do not need all the latest and greatest baby gadgets, the name brand clothes or hundreds of toys. What they do need are their parents. They need parents who are going to be present and are going to show them the time they deserve. They need parents who are going to take care of their everyday needs, but are also taking care of their own physical, mental, and emotional needs. They need parents who are going to love them no matter what the circumstances may be. Babies deserve and want nothing more than to be loved by their parents!
Overall, preparing financially for a baby requires careful planning and a willingness to make adjustments to your budget and spending habits. By starting early and being proactive, you can set yourself up for financial success as you welcome a new addition to your family.
