How to Financially Prepare for a New Baby

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Nothing compares to the joy that is finding out you're going to be a parent, but after a few weeks of feeling like you're on cloud 9, it's time to buckle down and start preparing. When we say prepare, we're not just talking about designing the baby's room, shopping for clothes and reading baby books - we're also talking about money (babies are expensive!).

Below, take a look at some of the top tips on how to prepare for a new baby:

Start an emergency fund. 
Even if you already have a savings account for emergencies, start another one that is 110% dedicated to your future child. From pre-baby doctor visits to post-baby doctor visits and everything in between, you'll feel a lot more comfortable knowing you have some cash tucked away if you get hit with a bill that was larger than expected.

Review your budget.
It shouldn't come as a shock that raising a child is expensive - The Wall Street Journal reports that the cost of raising a child (until they turn 18) that was born in 2013 is $245,340. That said, it's only obvious that you're going to have to rearrange your budget to account for the added costs you'll have on a weekly, monthly and yearly basis once the baby arrives - you won't just be preparing meals for two anymore or buying clothes for just yourself!

Speak with your employer.
What are your employer's maternity and/or paternity leave policies like? This is extremely important for you to know, as it could certainly impact how much income you take home the year your baby is born - especially if something unexpected comes up and you are required to stay home for a longer period of time.

Find the right doctor.
Medical bills are probably going to be one of your biggest expenses before and after the baby arrives, so take the time to research doctors in your area to ensure that you're finding one within your insurance network. Speaking of insurance, you'll also want to review your policies to see what costs (prenatal care, delivery, etc) are covered, and you'll want to find out how much your premiums will change once you add the baby.

If you're in the process of planning for a new baby, first we'd like to say congratulations and wish you and your family all the best! Then, we'd like to offer a bonus tip:

Find a Financial Planner
In addition to going through your budget with you and discussing strategies to keep your own finances in check, a financial planner can also help you start to plan a secure financial future for your child - did you know that there are certain savings accounts available to help parents save money for their children? Take a 529 Plan that helps you save for their college, for example! There are a ton of opportunities out there, and a financial planner can help you figure out what's best for you and your growing family.

That said, are you looking for a financial planner to help you prepare? Look no further - we at American Investment Planners LLC have you covered!

To learn about the services we offer and how we can help you during this time, please give us a call at (516) 932-5130 or send an email to info@americaninvestmentplanners.com.