Having a baby is a big step and you may be wondering how to be financially prepared. If you are planning for a baby or if you just found out that you are expecting, you should probably start putting your finances in order. You may also be wondering how much having a baby will cost you or how much your spending will have to change. We are here to give you several tips on how you can answer some of these questions.
How to get be financially prepared for a baby
- Create a budget
Since you will have to make a lot of changes to your current budget, creating a new one is a good idea. Things like buying supplies for the baby will have to be included. If you want to find out how much some of the baby stuff will cost you, have a look here. It is also a good idea to split your budget between before and after the baby so that you can have a clearer idea of your finances.
- Get a health insurance
If you are planning to have a baby, it would be wise to get health insurance that will help you cover medical expenses. If you already have one, you should follow up to make sure everything is in order. Unfortunately, many insurance providers will not cover your expenses if you have a baby less than nine months after you take out the cover. So, make sure you get the insurance in advance.
Consider your leave options
If you are a working mom, you will have to talk to your employer and find out what your maternity leave terms are. Some employers will give you paid leave while others may not. Find out what your company policy is on the issue.
- Scout for a good hospital
You don’t want the big day to find you unprepared so finding a good hospital will be a good idea. Make sure to find out how much they charge, if your insurance will cover it or if you will have to chip in.
There is no other way about it, you have to save. Your expenses will definitely increase once your baby comes and you should also be ready. Schooling will also be in the near future once the baby gets here so you need to be prepared.
- Find out if you need to hire help
Many moms will need help with the new baby and some will need to hire someone for this. This will be an added expense that you need to consider. You will have to decide how much you are willing to spend on this and start making arrangements as soon as you can.
You can never be truly ready for a baby, but you can be well prepared. Start making the necessary arrangements as early as you can.
By Beth Mugo