Preparing for a Baby
Clinton Savings Bank is not a financial advisor. Please consult with a licensed professional who can provide advice tailored to your individual circumstances.
Preparing for a Baby
Are you adding a child to your family? Congratulations! Whether it be through birth or adoption, parenthood is a fulfilling experience that requires careful planning and consideration.
As with any major life change, if you have a better grasp of the financial requirements and tasks, you may be better prepared for what's ahead.
Plan
Plan things one step at a time so you do not get overwhelmed.
Will you (or your partner) take parental leave?
Though the United States does not offer universal paid parental leave, many employers offer some form of maternity leave benefits. You should contact your HR department to review all your available options. Your partner should also reach out to their HR department to review family benefits that may be available to them. You may still be able to save vacation time or other paid time off available to use.
Will you plan on a hospital, birthing center, or professionally-assisted home birth?
Be sure to include the financial aspect in your research. Does your health insurance cover a specific method and not others? Are your doctors and other prenatal professionals covered under your insurance plan? These kinds of questions are very important. Meet with the birthing professionals or institution beforehand to clarify billing procedures and to make as many arrangements as possible before the baby gets here.
Where will you get all of the supplies you'll need for your new family member?
Will you buy most things new, or can you buy second-hand or borrow? While it is very important to buy some things new for safety reasons (car seats for example), many other expenses can be reduced through buying things secondhand—or even borrowing them! Baby clothes, toys, diaper bags, and other necessities can break the bank if you’re not careful. Take a good look at your budget and see what you can reasonably afford.
Are there existing medical or other conditions for the mother or child which will require special treatment?
While most people can’t know this answer for sure, it is something to consider. For example, if you plan to adopt a child with special care requirements, or if the mother has special medical circumstances, take a look at those extra costs and budget them in as best you can.
Act
The answers to these questions can inform you as you create a new budget. Take a look at your current expenses to see where you may need to make adjustments. (Don’t have a current budget? Click here for budgeting resources!) You'll probably end up needing more than you expect for your new bundle of joy, particularly if this is your first child. Being generous with your budget now and planning around these new expenses in advance can make the transition easier when the baby arrives.
Disclaimer
While we hope you find this content useful, it is only intended to serve as a starting point. Your next step is to speak with a qualified, licensed professional who can provide advice tailored to your individual circumstances. Nothing in this article, nor in any associated resources, should be construed as financial or legal advice. Furthermore, while we have made good faith efforts to ensure that the information presented was correct as of the date the content was prepared, we are unable to guarantee that it remains accurate today.