Prepare Your Finances for Your Baby

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Babies = money out the window. How stable are your finances? Consider questions such as these:

You should know what medical expenses are covered during and after pregnancy so that your little bundle of joy doesn’t come with unexpected price tags. How much of the pregnancy and delivery are covered? Not all medical procedures are covered.
Do you have life insurance in the event that you die? If you do, is it enough to replace the income you would have earned until your child has left the house?
Do you have disability insurance should one of you become unable to earn money for a while?

Have you factored in the costs of food, clothing, medical care, education, and childcare?
How much maternity and paternity leave are granted by your job? How much of that is paid?
Do you have adequate savings for the period when you won’t be working? Do you have a budget to control expenses?
Can you pay down your debts as much as possible before the baby’s birth?
Do you have investments that you can tap into if need be? Did you meet with a financial planner before the baby’s birth (or before you got pregnant, or even before you got married) to get a feel for the effects of family on your money? Financial institutions often have special financial products (loans, investments, savings products) geared toward expecting and new parents.
Do you have a support network to help during this time? Can you borrow from friends and family if need be?

What is the health insurance coverage for your baby? What kind of coverage can you get?
Do you want to make your new child a beneficiary on any of your accounts?
Do you have a guardian named?
Should you amend your will if you have one? If you don’t have one, now is the time to write one.
Have you considered setting up a trust for him or her?
Do you know all the tax breaks that are available to parents? There are ones made just for you. This is where meeting with a tax advisor or financial planner can save you a lot of money.