A BIG Thank You to CreditRepair.com for sponsoring today’s post: How to Financially Prepare for Your New Baby.
How to Financially Prepare for Your New Baby
Do you have a sweet little baby on the way? Congratulations… I’m so excited for you!
To help you get ready, I’m going to show you How to Financially Prepare for Your New Baby in 10 easy steps!
I’ll never forget how excited I was for the arrival of my babies. From decorating their nurseries to filling their dressers with itty-bitty clothes, each day was filled with so much excitement and anticipation!
Right now it might seem like time is moving so slowly while you await the arrival of your precious little one, but there so many things you need to do before Baby makes an appearance!
With your baby almost here, one of the most important things you need to do is get your finances in order.
That’s why I’m going to show you how to financially prepare for your new baby today!
From reviewing your health insurance to purchasing life insurance, and creating a will to supercharging your savings… there are so many essential steps you’ll want to take before Baby arrives!
Simply follow these 10 easy steps to get your finances in order for your growing family…
Related: Free Baby Stuff for Expecting Mothers!
#1: Review Your Health Insurance Plan
The first thing you’ll want to do when preparing for Baby’s arrival is to review your health insurance plan.
You’ll need to know what percentage of your prenatal care and delivery charges will be covered.
Now is also a good time to choose a pediatrician within your healthcare plan for your new little one. Then, after Baby is born, be sure to add them right away to your health insurance plan.
These simple ideas are some really important first steps to take to financially prepare for your new baby.
#2: Negotiate Healthcare Costs
Now if you’re self-employed with a high deductible health insurance plan or you are part of a health-share coop, negotiating your healthcare costs on the front end can save you SO much money!
Childbirth costs at your local hospital can be steep, so you want to start thinking now of any way you can to reduce those costs.
For example, I had a friend who was pregnant and she called the hospital where she would be delivering and asked for a discount. They offered her a significant discount {around 40% off} if she paid cash for the delivery. Now that was worth the call!
Another friend of mine asked for an itemized statement of charges after her baby was born, and noticed an astronomical charge for ‘Newborn Diapers’. A few years later when she went to the hospital to have her 2nd baby, she simply packed some newborn diapers she’d purchased using coupons.
This one little trick saved a nice little stash of cash! It really can pay to check with your hospital before your delivery to see if there are any ways you can reduce your costs during your stay.
#3: Purchase Life Insurance
Now that you’ve reviewed your health insurance plan and negotiated your healthcare costs, it’s time for you and your spouse to look at purchasing life insurance.
I know, I know… it’s never fun to think about life insurance, but it’s really important that you do. The benefits of life insurance skyrocket once you start a family.
Now you have a sweet little newborn relying on you, you want to make sure you have a way to provide for your family, even if you’re no longer there.
#4: Create a Will
If you haven’t already, you’ll also want to create a will.
By creating a will, you’ll get to specify where your property and money will go after you die, rather than the state deciding.
Again, I know there are so many more fun things you’d rather be doing right now… like decorating the nursery. However, this simple act alone is such an important step you can take to protect Baby’s future.
When writing your will, make sure to also add your child by name as a beneficiary. You’ll also want to specify by name who you would like to care for your baby as legal guardians {like godparents} if both you and your spouse were to die.
Then check with your attorney or state to see what you’ll need to do to make sure it becomes a legal binding document. For example, you may need witness signatures, notary stamps, etc.
#5: Update Your Budget
So now that your family is officially growing, it’s time to address your budget.
Adding another person to the family means there are going to be some increased costs and new expenses you’ll need to account for. There will be some one-time expenses like medical costs, nursery furniture and baby gear.
Then there will be some ongoing expenses, like diapers, baby clothing, and baby food. So take some time today to list out all of the future expenses that come to mind, and start budgeting for Baby.
#6: Complete a Financial Checkup
Now that you’ve updated your budget, it’s a great time to complete a financial checkup. Just like Mom and Baby will have lots checkups, our finances need an occasional checkup, too!
One of the most important things you can do as part of your financial checkup is to take a peek at your credit. It’s so important to know how healthy your credit actually is.
Start by requesting a free copy of your credit report every year from the three major credit reporting agencies: Experian, TransUnion, and Equifax.
A free credit report won’t provide your actual credit score, but you can review your report to see if there are any negative items being reported. Negative items can include late payments or delinquent accounts.
You can also review your credit report to identify if there are possible errors in your personal information or credit history. Finally, reviewing your credit reports may help you spot any fraudulent activity on your credit report.
To access your free credit report, simply visit AnnualCreditReport.com.
Did you find any problems or incorrect information on your credit report? Don’t worry, this is common and there are some really helpful tools available from CreditRepair.com to help clean up your credit score!
They will help make sure items in your credit report are substantiated, relevant, accurate and reported fairly. If items in your credit history are incorrect, they will work hard with you to get them corrected and to defend your financial reputation!
To learn more, go check out CreditRepair.com. Just remember… when you take positive steps to protect your credit now, you’ll also be protecting your future dreams.
Related: Annual Financial Checklist: How To Give Yourself A Financial Checkup!
#7: Supercharge Your Savings
So you’ve updated your budget and finished your financial checkup? That’s great! Now it’s time to supercharge your savings!
Babies are the sweetest gift ever, but they’re also expensive!
So start doing anything you can today to cut your costs and ramp up your savings account. You can start supercharging your savings with these easy tips for How to Save Money Fast!
Then… if you need some extra motivation, be sure to check out these 5 Reasons Why You Should Start An Emergency Fund.
#8: Start Saving for Baby’s Education
Another important tip for how to financially prepare for your new baby, is to start saving for Baby’s education now.
I know it seems so far off into the future, but college and trade schools can be expensive. Even if you only start stashing away a little here and there, it will all add up.
On that big day when Baby graduates and heads off to college, you’ll be so glad you started saving that nest egg early!
#9: Create a Baby Registry
Now here’s the fun part. Remember all of those expenses we talked about that you added to your budget? Well, you just may be able to get a little help with those from friends and family!
Now is the time to create your baby registries at your favorite stores. Make sure to register for both small and big ticket items, so there are options available for everyone’s budget.
In addition to fun items you just love, be sure to add plenty of practical items onto the registry list as well.
Only register for items you really think you’ll use. Friends and family members love to spoil new babies, and will be glad to help out with purchasing the items you need.
#10: Take Advantage of Freebies for New Moms
Are you ready for one of my favorite tricks to save big on clothes and gear for baby?
Freebies for new moms! That’s right… there are so many fun freebies available for expecting mothers, and they sure can lighten the load on your budget!
So go check out this huge list of Free Baby Products for babies and new moms!
So do you feel a little more prepared now for your sweet little bundle to arrive? Life is about to get really exciting! And once Baby arrives, life will also get really busy. So use your time now to take steps to financially prepare for your new baby. You’ll be so glad you did!
