Money Monday: How To Get Financially Prepared for Baby

Being financially responsible for a new individual can be stressful - but it doesn't have to be.  Steven Hughes, from Know Money Inc., offered some tips on how to financially prepare for a baby.

Columbia, SC (WLTX)- The gender reveal party was great and the baby shower is on the way. As time goes and your baby grows, you and your family need to prepare for your new addition. Here are some ways to get your finances ready for a baby:

  • Get Aggressive With Your Savings: With the right hooks life throws at you in addition to the costs of accident-prone kids, emergency savings are important. At this point, an unexpected expense could send your household into a negative financial spiral. Decide what you’re willing to cut to get your rainy day fund to 3 to 6 months of your living expenses.
  • Budget What Baby Expenses Will Do To Your Household Expenses/Budget: Diapers, food, and daycare are new expenses to your house and they’ll cause a lot less stress if you feel more prepared to handle them. Think about your childcare and diaper costs as annual expenses and create a savings account that you can contribute to for these costs.
  • Understand Your Health Insurance and Anticipate Medical Costs: Big money baby essentials include medical costs. Be aware of your health insurance policy. Research how your baby will be covered and if you will need to change your plan after the baby is born to accommodate all the doctor visits in the first year of life. Check to see what prenatal care and hospital bills you’ll have to cover out of pocket and what will be covered under your insurance coverage.

Babies are beautiful gifts to families. Beautiful, expensive gifts. Start with these financial tasks so when your new addition gets here, you can focus on your child and feel confident you’ve prepared. 

© 2017 WLTX-TV


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