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Preparing Financially to Expand Your Family

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Whether you’re already pregnant or just starting to have the conversation about expanding your family, congratulations! This is a very exciting time in your life. You’ve decided to add a new person to your household, and we want to help you financially prepare for the new arrival. This is a great opportunity to learn new skills and adjust your lifestyle. Below, you’ll find a handful of tips and advice to help you financially prepare to expand your family.  

Include Medical Expenses - Whether it’s ultrasounds, birthing classes, vaccinations or regular check-ups, one of the biggest expenses you may come across when having a baby is the medical costs. Include these in your family’s budget; it could potentially save you, and your family, from any unexpected stress down the line.

Consider Upfront and Ongoing Expenses - It can be beneficial to think about other expenses that come with having a baby such as:

· Car seat and stroller

· Crib, playpen and mattress

· Changing table and high chair

· Baby clothes and diaper bag

· Food, bottles and formula

· Childcare

Explore Your Company’s Parental Leave Policy – Each company has its own parental leave policy, which can include a variety of paid and unpaid plans for new parents. If you’re unsure, it may be a good idea to speak with someone in the HR department to see if there is a structure in place and what is offered. Also, you may want to find out if you’re eligible for annual leave or regular unpaid leave if you’re planning to take time off work.

Research the Government’s Paid Parental Leave Program – If your company’s parental leave policy doesn’t cover it, there’s more help out there. You may be eligible to receive support from the government’s paid parental leave programs, which can be beneficial if you are trying to balance money. With paid parental leave programs, primary caretakers of newborn or adopted children can apply for parental leave payments from the government.

Create a Budget from the Information You’ve Gathered - Once you’ve considered the expenses of growing a family, and how long you may take off work, it can be helpful to set up a budget and start putting money aside for your family’s future.

Prioritize Eliminating Your Existing Debt - If you have outstanding debt, like credit cards, personal loans or student loans, you may want to consider how you can eliminate or reduce these as much as possible. Unexpected child-related expenses are bound to pop-up at the most inconvenient time. Eliminating debt allows you more flexibility when these expenses occur.

Having a baby changes everything and being in a financially-sound place before starting a family can make the adjustment much less drastic. Keep in mind, money isn’t everything. While it may be tempting to invest in the most expensive baby clothes, toys or daycare, love and spending quality time with your little one is what matters most.  Having a family is wonderful, and we hope you found these tips helpful in your journey as new parent.

What financial advice would you give to new parent, pre-baby? Please share it here.

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Categories: Safety and Security , Smart Spending , Strategies for Saving
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