Financial advice for new parents

As prepared as you’d like to be for a new arrival, nothing can absolutely ready you for this enormous change to your life. Don’t let financial stress overshadow the excitement of welcoming a new little one to your family. Below is helpful financial advice for new parents to consider before busy days with baby and those inevitable sleepless nights.

1. Have a good understanding of your health insurance to anticipate upcoming costs: There’s nothing worse than being hit with a giant hospital bill without any warning. It is difficult to know exactly how much you will be charged, as some experiences are more involved (and are longer) than others, but having a solid grasp on your plan and what is covered will help you stress less about finances after baby arrives.
2. Add practical items to your gift registry: It’s easy to fall into the trap of adding unnecessary baby gear to your wish list (such as cute outfits or expensive accessories). But it’s important to remember to ask for things you will actually need a lot of, like diapers, for instance. Baby store gift cards are also a smart option. Of course you will want other fun baby gifts, but be mindful of their cost; gift-givers will be more likely to purchase items that are reasonably priced, and you may actually get more from your family and friends if what you’re requesting is at a lower cost.
3. Consider childcare options in advance: It may be hard to imagine leaving your little one and heading back to work, but for many, it is a must. Before childbirth, have a plan in place for how you will handle this transition. Childcare can be extremely costly and in some cases can cost as much as a rent or mortgage payment. Couples who cannot afford this option often choose to have one parent stay home with the child. In this instance, you will become a one-income household. Deciding what to do in advance will help you work out what is best not only for your baby, but for your wallet.
4. Familiarize yourself with your company maternity/paternity leave policy: After your child is born, you will want to enjoy these first few months without unexpected financial challenges. Before his or her birth, make sure you fully understand your parental leave policies. Most companies have similar plans in place (typically around six weeks), but it’s important you and your partner evaluate your options prior to when the leave period starts. That way you can have a better plan ahead of schedule, which your employer will greatly appreciate as well.