If you’re planning to have a child, then you need to make several arrangements, especially in the financial sector. When you and your partner are ready for parenthood, you need to set-up the family finances accordingly. After the birth of the child will have to make a lot of expenses.
When you are thinking of having someone in your family, then there will be millions of thoughts that will run into your mind, so before the due date arrives, it is essential to plan the finances properly. Financial preparedness is equally important like physical and mental preparedness.
How to financially prepare yourself before you get pregnant
- You need to start saving money and keep aside the expenses of at least three months as an emergency fund.
- Saving up for education in the future is a must.
- Keep stocking up all the child’s supplies before they are born.
- You can purchase the used baby furniture to cut down additional costs.
- Look for a health insurance policy that will cover all the expenses related to the mother and child.
Tips On Preparing Yourself Financially Before Pregnancy
You need to begin by asking yourself whether you are ready financially to have a child. Your newborn is going to affect the bank account more than you can ever imagine. Get yourself financially stable before the baby arrives. It doesn’t matter whether you earn a lot or a little; all you need is to plan the finances properly.
Reduce Expenses
You need to spend economically by cutting down all the expenses. Initially when you are a new mother so you will not work for several months or sometimes a year, so you need to save some money because of the growing expenses, and you just cannot depend on the salary of one person.
You need to save the money that you are going to get during the period of maternity leave. You can also do some part-time job that will help you to save extra money before pregnancy if you don’t have any full-time job. To have a happy family, you need to start planning your finances before the baby arrives.
Parenthood Budgeting
If you want the expenses to run smoothly during the pregnancy time, then plan for it before the baby arrives. Create a list that will contain the monthly expenses, which will include food, entertainment, rent, clothes, insurances, and transport. Add everything to get a rough idea of how much you will have to spend every month from your income.
The money that will be left is not going to be your savings, but it is going to be used for all the expenses after the baby arrives. If you have the sorted financial planning, then it will help you to make the process of parenthood easier. Understand all the important tips for new parents first.
Nursery Decoration
Every parent loves to decorate the nursery for their newborn. If you want to be wise when it comes to spending money, then you can opt for pocket-friendly things.
You can look for online deals where you can easily purchase baby essentials and furniture at a reasonable price. It doesn’t need to be expensive, so you can also opt for the used ones. With pregnancy, a lot of extra expenses will come in your way, so you need to prepare yourself accordingly.
Health Insurance
After the baby is born, you will get 30 days within which you need to put the child’s name of the health insurance plan. Prepare the paperwork as soon as possible.
Pay The Debts
When you are preparing yourself to have a baby, then make sure you do not have any debt on your list. By paying all the debt, you will be able to achieve freedom.
Even if you cannot pay the entire debt, make sure you are reducing it to a considerable extent so that it won’t become a burden after the baby is born. By remaining debt-free, you will get a financial margin. Your partner might not be interested if he is not ready to be a dad.
Emergency Fund
If any of you is thinking of staying at home with the newborn after the delivery, then you need to build the emergency fund for at least three months.
Purchase Diapers
After the baby is born and till your child reaches a particular age, you will need diapers every single day, and it adds up to a huge expense. Since diapers won’t get expired, so buy them as much as you can before the delivery.
Financial Inventory
It is essential to study your finances properly before having a baby. Know about your income, net worth, expenses, monthly budget, bills, and credit report. You need to know the finances accurately to organize financial life.
Delivery And Prenatal Care Cost
If you already hold health insurance in your company, then there is a high chance that most of the costs related to birth will be covered under it. You need to talk with your HR and discuss whether the health insurance will cover the current figures related to delivery and prenatal care or you need to put it under your financial plan.
Think About School And College
The major expenses related to a child will be their education. You need to discuss with your spouse whether you are going to send your child to a private or public school or college. Even though it may seem absurd, but when it comes to planning the finances for your child’s education, then it is never too early.
Prepare The Will
When you are thinking of having a child, make sure you are writing the will. Even though it might look like a daunting task, still it is essential.
Will is the type of legal document that will state who is going to receive all the assets that you own along with who is going to be the legal guardian of the child when the parents die. Ensure that you are always ready for bad things as well. It is essential to prepare emotionally for your pregnancy as well.
Research About Daycare
Before the baby is born, you need to plan with your partner, whether either of you will stay with the child every day or you are going to opt for the daycare. Both of these options can affect finances dramatically. If you decide to opt for daycare, then look for an affordable and good daycare.
Miscellaneous Expenses
Try to create an account where you will save money for all the unexpected costs. You can use this money for additional health care like in case the mother has to go through c-section or pregnancy clothes or essentials for the baby. This will help in reducing any stress that might come from unexpected issues.
Frequently Asked Questions (FAQs) about financial planning before pregnancy
1. What benefits can the parents claim after having the baby?
After having the baby, you can claim income support pension credit, universal credit, child tax credit, support allowance, etc.
2. What should be the financial stability before having the child?
To gain financial stability to have a child, you need to start saving and keep aside the expenses for three months as the emergency fund.
3. What benefits can anyone get when they are pregnant?
You can claim for income support if you are not eligible for statutory maternity pay or maternity allowance or have a low income or unemployed.
Final Thoughts
Smart planning, savings and cost-cutting will help you to prepare yourself financially for pregnancy. Make sure that after the baby is born, you are not stressing yourself with the growing expenses.
The expenses will keep on rising after the child is born, so do not expect them to fall. If you are not financially prepared to have a child, then it is better to wait until you are ready.
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Mother of Two children. I’m a former teacher with a background in child development and a passion for Good parenting. I understand child development and know how to develop activities to help children learn and grow. Spare time, I enjoy spending time with my family, reading, and volunteering in my community.
