| Get SmartTips Newsletters by Email |
 |
SmartTips is a totally free weekly eMail newsletter featuring expert advise and tips on the topics that matter to you, such as:
- Tempated by new car deals? Check here first to avoid over-paying.
- End of the year anticipation? Did something change this year that will affect your taxes?
- 529 College Savings Plans. Your children are never too young—or too old—for you to get started.
Save money with FREE tips on everything from budgeting, managing debt, buying insurance, and planning for retirement.
|
| Get SmartTips Newsletters by Email |
|
SmartTips is a totally free weekly eMail newsletter featuring expert advise and tips on the topics that matter to you, such as:
- Tempated by new car deals? Check here first to avoid over-paying.
- End of the year anticipation? Did something change this year that will affect your taxes?
- 529 College Savings Plans. Your children are never too young—or too old—for you to get started.
Save money with FREE tips on everything from budgeting, managing debt, buying insurance, and planning for retirement.
|
|
|
|
|
|
|
|
Adjust Your Budget
|
 |
|
Until your child arrives, it will be difficult to accurately estimate how your monthly expenses will grow. But it’s important to try. Here are some guidelines.
Additional annual costs* over the first two years will include:1
| Housing |
$3,890 |
|
Food |
$1,230 |
| Transportation |
$1,360 |
| Clothing |
$410 |
| Healthcare |
$750 |
| Childcare |
$1,890 |
*Assumes child born to couples with average income of $59,300.
Before you start buying things for your baby, know what you need, how much you’re willing to spend, and where the money will come from. Pick up a copy of Baby Bargains by Alan and Denise Fields for reviews on hundreds of baby products. Avoid going into debt while outfitting the nursery. Your goal is to create a stable and nurturing environment for your baby—not to incur crippling debt that will weaken your financial prospects.
Be sure to budget for other startup costs, including paying for the hospital delivery and accounting for any unpaid leave at work. And if your spouse or partner plans to stay home, make sure you can afford to live on one income and adjust your spending habits accordingly—preferably before the baby comes to give the arrangement a test run.
After baby arrives and life settles down, make sure there’s room in your monthly budget for things like diapers, formula, clothes, toys, doctor visits, photo developing, and babysitters. One way to free up cash: Pay off your high-interest debt. Use the money you save on interest and monthly payments for your baby’s needs. Plus, you'll probably be spending more time at home than going out on the town, so your entertainment expenses should decrease, freeing up more cash.
1Expenditures on Children by Families, 2006, U.S. Department of Agriculture, pg. ii
Until your child arrives, it will be difficult to accurately estimate how your monthly expenses will grow. But it’s important to try. Here are some guidelines.
Additional annual costs* over the first two years will include:1
| Housing |
$3,890 |
|
Food |
$1,230 |
| Transportation |
$1,360 |
| Clothing |
$410 |
| Healthcare |
$750 |
| Childcare |
$1,890 |
*Assumes child born to couples with average income of $59,300.
Before you start buying things for your baby, know what you need, how much you’re willing to spend, and where the money will come from. Pick up a copy of Baby Bargains by Alan and Denise Fields for reviews on hundreds of baby products. Avoid going into debt while outfitting the nursery. Your goal is to create a stable and nurturing environment for your baby—not to incur crippling debt that will weaken your financial prospects.
Be sure to budget for other startup costs, including paying for the hospital delivery and accounting for any unpaid leave at work. And if your spouse or partner plans to stay home, make sure you can afford to live on one income and adjust your spending habits accordingly—preferably before the baby comes to give the arrangement a test run.
After baby arrives and life settles down, make sure there’s room in your monthly budget for things like diapers, formula, clothes, toys, doctor visits, photo developing, and babysitters. One way to free up cash: Pay off your high-interest debt. Use the money you save on interest and monthly payments for your baby’s needs. Plus, you'll probably be spending more time at home than going out on the town, so your entertainment expenses should decrease, freeing up more cash.
1Expenditures on Children by Families, 2006, U.S. Department of Agriculture, pg. ii
|
|
|
|
|
|
Notice
By clicking any of the link(s) on this page you will be transferring from this Marsh site to a site comprised of third party content. You hereby agree that Marsh is not responsible or liable in any manner for such third party content hosted on the linked site.
Notice
By clicking any of the link(s) on this page you will be transferring from this Marsh site to a site comprised of third party content. You hereby agree that Marsh is not responsible or liable in any manner for such third party content hosted on the linked site.
|
|
|
|
Redo Your Expense Budget
Download this budget worksheet to help you manage the additional expenses you will experience.
|
Note
|
| The products and services listed on this page are presented as a service to you. Neither L-3 nor Marsh recommends any product or service; there is no guarantee that any listing on this page will be suitable for a particular purpose. |
Redo Your Expense Budget
Download this budget worksheet to help you manage the additional expenses you will experience.
|
Note
|
| The products and services listed on this page are presented as a service to you. Neither L-3 nor Marsh recommends any product or service; there is no guarantee that any listing on this page will be suitable for a particular purpose. |
|
|
|
|
Prepare for Future Child-Rearing Expenses
Once you have a child, financial planning for the future becomes even more essential. How will you finance child care, medical bills, food, education, clothing, toys, and education savings? What will you need to spend money on and how much will each item cost? Here is some of the information you will need.
Source: CPA Site Solutions
|
Note
|
| The products and services listed on this page are presented as a service to you. Neither L-3 nor Marsh recommends any product or service; there is no guarantee that any listing on this page will be suitable for a particular purpose. |
Prepare for Future Child-Rearing Expenses
Once you have a child, financial planning for the future becomes even more essential. How will you finance child care, medical bills, food, education, clothing, toys, and education savings? What will you need to spend money on and how much will each item cost? Here is some of the information you will need.
Source: CPA Site Solutions
|
Note
|
| The products and services listed on this page are presented as a service to you. Neither L-3 nor Marsh recommends any product or service; there is no guarantee that any listing on this page will be suitable for a particular purpose. |
|
See How Much it Costs to Have Children
Children are worth their weight in gold -- that is, when you add up all the costs. Use this calculator to figure out Junior's bottom line. Calculate your payment and more.
Source: Bankrate, Inc.
|
Note
|
| The products and services listed on this page are presented as a service to you. Neither L-3 nor Marsh recommends any product or service; there is no guarantee that any listing on this page will be suitable for a particular purpose. |
See How Much it Costs to Have Children
Children are worth their weight in gold -- that is, when you add up all the costs. Use this calculator to figure out Junior's bottom line. Calculate your payment and more.
Source: Bankrate, Inc.
|
Note
|
| The products and services listed on this page are presented as a service to you. Neither L-3 nor Marsh recommends any product or service; there is no guarantee that any listing on this page will be suitable for a particular purpose. |
|
|
|
|
|
|
|
Checklist
|
|
|
|
There is no greater responsibility than becoming a parent. You have so much to do and so little time before your baby arrives. You need to decorate the nursery. Buy a stroller. Childproof the house. But getting a handle on post-baby finances tops your agenda. Click on the tasks below to get help.
Calculate baby’s impact on your budget. You may be surprised.
Whether you’re having your first child or adding to your family, you should include child-related costs in your budget. According to the federal government, a husband-wife family earning just under $60,000 before taxes will have $10,600 to $11,660 in extra expenses, depending on the age of their child. You also may incur big expenses such as moving to a bigger house or buying a larger car. 
Shop carefully for a daycare provider. You want to sleep at night.Finding the right daycare provider is one of the most important decisions you will make before returning to work. Your assignment: think through your options, interview carefully, and listen to your parental instincts.
How long can you stay home?
If you're a working Mom, you've undoubtedly thought about maternity leave. If you’re a working Dad, you may have considered paternity leave, as well. Talk to your employer to understand your options.
Having a child means you have more to protect. Time to think about insurance.As a new parent, you don’t want an unforeseen event to weaken your family’s finances. Make time now to identify—and fill—the gaps in your insurance program.
College for a newborn baby seems far away. It’s not. With tuition costs rising every year, it doesn’t pay to wait. Start your child’s college savings program now.
It’s time to think about your mortality. Do it for your child’s sake.If you have not already thought about estate planning, now is the time to start. By clarifying your goals and using basic estate planning techniques, you can ensure that your wishes will be carried out—and your children provided for—when you’re gone.
Take advantage of Uncle Sam’s parenting tax breaks.Educating yourself about the tax implications of parenthood can save you a lot of money. Specifically, you should understand how dependent exemptions child-related tax credits work.
Your heart is ready, but what about your budget?Adopting a child is a big decision, probably bigger than education, marriage, or career. Depending on your choice of adoption method, your finances are in for a big challenge. The time to plan is now.
Single parenting is a challenge. Time to get creative about money.Nearly thirteen million Americans are single parents. 7 This is not an easy task because they not only have to work, they also clean, help with homework, shop, and run errands. Limited time and the pressures of child rearing can be stressful. Add to this the financial pressures of being the sole breadwinner. But don’t take these pressures sitting down. Take control of your finances today. 7 U.S. Census Bureau News, Release CB07-46, 3/27/07
Making this decision is emotionally charged and financially crucial. Think it through carefully. To make this decision, weigh the hard-dollar costs as well as the emotional implications of being away from your child.
|
|
|
|
|
|