Published On: Mon, Jul 20th, 2015

Financial Considerations Before Baby Arrives

Prepping for parenthood can be a daunting task. So many things run through your mind ranging from the sweet hopes and dreams for your child, to being frightened you won’t be a good parent. As with any situation, it helps to make notes of the more important things to do and then set about seeing them done. After all, sitting about while anxiety grows never does anyone any good, especially a developing baby. Checking off a list of important financial considerations before baby arrives gives you a helpful feeling of accomplishment and readiness.

Budget – Whatever you’re currently spending on yourself, toss it over into the baby budget and resign yourself to wearing the same shoes until the soles ffinancial considerations before baby arrivesall off. Just kidding, well, at least to some extent. The cost of all that baby gear, nappies, and multitudes of cute onesies does add up though. Anybody who has been down the parenting road will tell you they would be far better off financially had they been less inclined to waste money on so much baby stuff that in reality, wasn’t necessary.

Gifts and purchases – Since it’s your first baby, a lot of what you need will be given to you by excited grandparents-to-be and friends. For items still required after the gifts are opened, try to buy second hand. Sure, it’s your first baby and you want everything nice and pretty¬†but every cent saved is money toward more important things than whether or not a few toys or the playpen is slightly faded.

Savings Account – All children should have a savings account and what better time than now to start adding up the cash? If you can, put together a trust for your child’s future.

Life Insurance – Another parental responsibility is securing a life insurance policy so if the unexpected happens, your child won’t suffer financially.

Will – Making a will isn’t on most people’s minds during the joyous occasion of having a first child but like a savings account and life insurance, it is the responsible thing to do and it is very easy now that you can get an online will. Will preparation should include naming a guardian in case you can’t care for your child in the future. It is the single most important and loving thing parents can do to ensure a stable future for their son or daughter. Otherwise, the courts will do it and the outcome isn’t always what parents would have chosen.

Emergency Fund – A situation doesn’t always have to be life threatening or life altering to be considered an emergency. Parents should always have money on hand for unexpected expenses. Kids have a way of bringing surprises and dicey situations into ordinary life. When little Sammie or Sally spray-paints on the neighbour’s new car or jumps on the dog, you’ll have money to cover the clean-up and vet bill. If you think your kid will be impervious to such mischief, you need a reality check, but don’t worry, your 7 to 8 lb. dose of reality will arrive soon.

Tax Breaks – It’s not all bad news by any means. Investigate just what type of tax breaks are involved for your new family status and you’ll find the burden eased somewhat.

Try to relax and enjoy this time in your life. After all, a first pregnancy only happens once and it really is a sweet and special time. While the list of more important things such as a will and life insurance isn’t nearly as fun or adorable as bright new baby gear, keep in mind your child won’t be a baby very long, nor will he or she remember anything about infancy. But your child will absolutely remember and appreciate any and all care put toward a secure future.

If you would like to read more about preparing for the big day, you may find the Mummy Weekly Article 6 Essentials to Pack in your Hospital Baby Bag helpful.

By Natalie Athanasiadis
Copyright 2015

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