Having a baby is expensive even with health insurance. You should determine your expected costs as early as possible in your pregnancy or even while you’re trying to conceive.
You’ll need time off right after the baby comes to recover and also acclimate yourself to the new, tiny human in your life. Determining how much time you can take off and whether it’s paid or unpaid will impact your household significantly in the finance sector in the first year. You need to plan for it.
Plan for the things you need to buy before baby arrives so you aren't blind-sided later. Consider these purchases as you plan.
Pregnancy expenses
- Maternity clothes
- Prenatal vitamins
- Childbirth classes
Nursey Setup
- Crib, mattress, bedding, dresser, changing table and baby monitor
- Car seat, stroller, diaper bag
- Optional items: swing, bouncy seat, toys, etc.
First Year of Life
- Child care
- Diapers and wipes
- Clothing
- Health care: well-baby and sick baby care
Personal Finances & Matters
- Setting up a college savings fund.
- Writing or updating your will.
- Getting disability insurance.
Do your best to save at least three months of living expenses, more if one parent decides to quit working after the baby arrives.
Prioritizing your personal finances is the best way to ensure your family has a brighter future. Other things to consider while preparing for your baby include:
- Adding your baby to your health plan
- Setting up a college savings fund
- Writing your will
- Getting disability insurance
- Participating in a flexible spending account
Making the decision to become a parent is a big step. Making the right financial moves will help you — and your baby — in the long run.
