And, with the new tax law, you can withdraw up to $10,000 from a 529 tax-free for private elementary and high school tuition as long as the plan allows it. Move on to budgeting for pregnancy and the first several months of your baby’s life. NerdWallet’s guide to making sense of your medical bills can help as you navigate prenatal care, labor and delivery, and the bills that will ultimately follow. Start or check your emergency fund. Plan for the Birth. Along with preparing for the costs of clothes, furniture and baby items, take time to review your health care and employer benefits and policies relating to time off from work. Babies come with plenty of expenses, so set a limit on both necessary and optional buys (like that designer diaper bag or high-end stroller with the LCD control panel), and consider buying used to keep spending under control. Between your prenatal checkups, baby essentials and even a new wardrobe to dress that growing belly, things can add up quickly if you’re not careful. 7. New expenses. Equal Housing Lender. Financial experts share smart money tips for handling parenthood on one salary. The first thing to consider is that while you may be making good money now, when you are pregnant or having the baby, you will be working far less hours. Budgeting for baby doesn't have to be hard. Add your child to your health insurance. It’ll soon add up. If they don’t or if you are having a home birth, contact your state’s office of vital records for the birth certificate and your local Social Security office to get a Social Security card. This guide will lay out the most important financial tasks on your plate from pregnancy to baby’s first years, including: Some parenting preparations are best learned on the fly — how to effortlessly and painlessly change the messiest diapers, for instance. Planning a baby? Here in the U.S. you’ll likely patch together a quilt of maternity leave, unpaid family leave, vacation days and personal days in the first months of your baby’s life. High chair: You could spend up to $100 or more on a high chair, or purchase a booster seat that attaches to your dining room chair for $20 to $30. 1. Let NerdWallet help by tracking your spending and spotting ways to save. Below is a list of 8 items where I explain how to prepare financially for a baby. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. One can easily plan their Parenting Journey. No matter how well you plan ahead, it’s necessary to have an emergency fund. Order a birth certificate and Social Security card. … Planning to have a baby is an overall a joyful and exciting experience. Expand Your Family’s College Savings Plan If you set up a 529 plan for your newborn, consider asking family members to contribute for holidays and birthdays so your child will have a leg up on savings when it comes time for college. If you’re employed and plan on returning to work after the baby is born, plan your time off now. Consider a separate savings account where you can start putting money away now. Kids are accident prone, and with the cost of raising a child there’s no telling if you’ll have the disposable income to pay for any unexpected expenses. Because you’re having to buy big-ticket baby items (think strollers and car seats) at a time when your income may be slashed by parental leave. 12. Once your baby arrives, you’ll be busy. Planning Financially for a New Baby There are several financial issues to weigh in the balance when planning to have kids, starting with how it may affect your household income. Hospital staffers should provide you with the necessary paperwork to get your new child’s Social Security number and birth certificate. It's time for a financial overhaul. Because any earnings on your investment have the potential to grow, the sooner you can start putting money into that account, the more you'll potentially have available when it comes time for your baby to go to college. Tragic things happen and you want to ensure your child is taken care of in the event that one or both parents die. Put together a plan you feel comfortable with, and know that if you need to, you can always adjust your budget later and still be in good shape. John Lowe of Money Doctors. “You need to figure out your current and projected budget,” says Matthew D. Saneholtz, CFA, CFP, a financial adviser in Plantation, Florida. We strive to provide you with information about products and services you might find interesting and useful. What you'll learn. Create a Post-Baby Budget . Crush your debt. Preparing financially for a baby can seem like a daunting task. Getting ready for the arrival of your first child is an exciting time. How to plan financially for children with special needs. College is costly, but you can make it more manageable by starting to save early. Planning ahead for a baby is one of the best gifts you can give to yourself and your baby. Take care of these steps as early as you can to reduce stress, help prepare for your child’s future and keep your own financial goals on track. Free; Premium Why? Planning a baby? If you want to set up a tax-advantaged 529 college savings plan, you can do so before the baby is born. Consider the following when determining how to financially plan for a baby in your regular budget. Plan insurance, prenatal and delivery costs: A survey of Maryland new parents found an average premium of $418 per month for health insurance with a $4,000 deductible and 30% out-of-pocket costs. Read over your benefits package to find out how much time you and your partner’s jobs allow for parental leave. 1. Pay off your bills ASAP such as your home, your car, and food FIRST. “You need to figure out your current and projected budget,” says Matthew D. Saneholtz, CFA, CFP, a financial adviser in Plantation, Florida. A newborn can easily go through 10 diapers a day. Taking time away from work during and after pregnancy may require you to rethink your budget completely if your paycheck shrinks. Sit down and plan out your monthly budget for when baby arrives. Getting life insurance and creating a will are not only parts of smart planning, but they can also provide comfort in knowing there is a plan in place to help protect and take care of your family. The first thing I looked into when I found I was pregnant was health insurance. 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