A new addition to the family is one of the most wondrous feelings in life. Though babies are a joyful event, they do require planning, both mentally, emotionally, and financially. To insure that the transition for your new bundle of joy is a smooth and enjoyable as possible, you should make a new financial plan for your new family.
Adjust the Budget
Adding a new family member always means an adjustment in the budget. New family members mean more money needs to be added to several different categories. Typically diapers, wipes, and formula are the largest expenses for a child’s first year of life. There are also other major, one-time costs such as bassinets, cribs, car seats, and other baby accessories that make life with a child easier and safer. Plan out each of these purchases and make sure to adjust the overall budget on food, clothing, and baby items permanently.
Plan Insurance and Medical Costs
A new baby means more trips to the doctor’s office, vaccinations, and other medical costs. One of the biggest expenses is having the child themselves. Medical insurance is a big help when paying for the costs of a growing family. Do not forget to add your new baby to your insurance policy directly after birth. Go over the hospital expenses that you will incur after the birth so that you are financially prepared for any copays and other medical costs not covered by insurance.
Go Over Life Insurance
When you add beneficiaries to your family, they should also be added to your will, trust, and life insurance policies. Forgetting to add a child can be disastrous if something is to happen to you and you need to provide for all of your dependents. While expecting, go over the life insurance policies, and all wills and trusts to make sure that the child will be well provided for in the event of your passing.
Increase Long Term Savings
With a larger family comes larger costs. In order to properly plan for a new addition, it is advisable to increase your long term savings. If you need to borrow money before you have had the chance to increase your savings, loans can get you cash fast for help with bridging the gap in the meantime. Start out by putting money away from each check and continue to save until you have reached a sum that you feel is comfortable for your growing family.