Congratulations—you’re going to have a baby. A lot of excitement comes when that pregnancy test reads positive. Doctor appointments, baby showers, and learning the baby’s sex are top of mind for most expectant parents.
Pay Down Credit Card Debt
Check your credit score when you find out you’re pregnant. Are you financially sound? It’s time to clean your financial house.Research Daycare Pricing
In 2023, the average U.S. daycare costs $321 per week for an infant. That’s up from 2022’s $284. A nanny was $766 weekly in 2023. It went down slightly for a toddler. The average 2023 daycare cost for a toddler was $293 weekly.Depending on where you live, it could cost more or less. For example, infant childcare in Washington, D.C., costs $419 monthly. In contrast, California comes in at $304 for an infant.
It’s important to research your area during the first trimester or when you first make arrangements for adoption. Once you find a daycare that meets your budget and care requirements, ask about reserving a spot. Many daycares have waiting lists. You don’t want to be scrambling for childcare at the last minute.
Health and Life Insurance for Baby
Prepare for your health insurance premium to increase. Whoever is insuring the family should immediately discuss it with the HR director or manager. You need to know what you’re paying to budget.Find out the window after the baby is born, you have to add her to your insurance policy. If you don’t add your baby during this period, your baby won’t have health insurance until the next open enrollment period. That means you’ll be paying all the doctor’s fees.
Disability and Life Insurance for Parents
You’re providing for one more person. If you become incapacitated and can’t work, who’s going to help pay for your child?If your job doesn’t offer disability, go to an outside source. But disability insurance is a must.
Establish a Working Baby Budget
Once you’ve gone through and crunched the numbers, it’s time to form a budget. You need to factor in everything previously discussed. You also must consider prenatal and baby care co-pays. And since you'll be on maternity leave for a few weeks. There will be lost income that must be factored in the budget.Another element that must be added to the budget is the day-to-day costs of caring for your baby. The average U.S. parent goes through 3,000 diapers yearly. The average box of 44 diapers will run around $30. Babies eat and grow; you'll have to buy food and clothes for your child, and that adds up.
Resist the Good Life Before Baby Comes
Many parents-to-be want to have fun before the baby comes. They enjoy dinners out or go on big vacations. They’re enjoying one last hurrah!Watch Spending on Baby Gear
Don’t go overboard on the baby gear. Yes, you should purchase a new, quality car seat, but you don’t need a $1,000 crib. It’s not glamorous, but buying a crib for less than $200 from Walmart will still give the baby a good night’s sleep.Instead of asking for the newest baby gadgets you'll find, eventually, you won’t use, ask for practical gifts like bottles and a stroller.
Better yet, ask for gift cards, and you can buy what you really need.
Borrow Maternity and Baby Clothes
You want to look good while pregnant, but that doesn’t mean breaking the bank. Ask your friends who have had babies if they still have maternity clothes.Open a Safe Deposit Box
Your baby may receive savings bonds. You'll need to keep them safe until they’re ready to use them. Opening a safe deposit box is a great place to keep them.Work on Saving for Rainy Day
It’s hard to save when you have a baby, but still, try to put a little away each month. You can especially do this in the nine months before your baby comes.Develop Estate Plan and Designate Beneficiaries
It may seem premature but do some estate planning. How will your baby be taken care of if you die? Also, add your child as a beneficiary on your 401(k) plan or other retirement accounts. You probably have your spouse on them now, but the child should be the second beneficiary.Set Up a College Savings Plan
Start thinking about it, or go ahead and set up a college savings plan. They may not have been born yet, but time goes by quickly. In 18 years, your baby will, likely, be going off to college. You must be prepared.Plan Financially for a Baby
Research what expenses you’ll have. Don’t’ go overboard with buying baby gear. Sit down with your spouse regularly and go over the baby budget.It can be scary having a baby, and there’s a lot of work ahead. Take some pressure off yourself once the baby comes by planning your finances.