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.