How To Prepare Financially For The Birth Of A New Child

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

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

Whether you're a first time parent or a grandparent to-be, there's nothing like planning for a baby's birth - you get to pick out a name, clothes, furniture, and of course, the stuffed animal they'll carry around with them for the next several years of their life. But aside from all of the fun stuff that comes with preparing for your baby's birthday, there are also some pretty serious topics that need to be addressed, starting with money - according to an article from MarketWatch, recent findings suggest that the average cost of raising a child is over $245,000, and that's without college tuition or considering a child's needs after age 18.

Knowing that a child can be pretty costly, we are providing a few tips to help you prepare financially:

Find The Right Health Insurance: The cost of being pregnant alone is something that mustn't be overlooked - medical bills that result from multiple doctor appointments and the birth of your child itself will certainly add up before or right after your baby arrives. With that said, you need to do some serious thinking when it comes to the health insurance you currently have, and if it isn't going to help much with the costs, consider looking into any other plans you have available to you.

Talk To Your Employer: Even if your company offers maternity/paternity leave, you have to remember that this won't last forever, and there may be circumstances where you need some additional time off. Unless you have additional sick or personal days that you can use to spend time with your new baby, it would be in your best interest for you and your spouse to talk to your employers to learn if there are any other parental leave policies in place.

Re-evaluate Your Budget: The budget that you and your spouse once followed is likely going to have to change, but the time to figure that out is not after the baby is born - you need to start implementing new spending and saving habits well before then. With baby food and baby supplies about to be on your shopping list, you may find that you need to cut back in other areas or add more to your savings accounts while you still can.

Start Thinking About Opening Accounts: To ensure that your child has the funds they need as they get older (for college, for instance), you may want to consider opening a savings account or two in their name right after they're born. Some possible accounts include a 529 plan, a UGMA or a UTMA. Saving from a young age is extremely important, and since your baby won't be able to do so on their own just yet, it's helpful for you to give them a head start by opening an account like these as soon as you can.

Welcoming a new baby is certain to be one of the most exciting times in a parent's life, but it can also be overwhelming if the proper planning isn't done. But we want to help! Here at American Investment Planners LLC, we help families plan for all of life's greatest events and milestones, and we would love to be a part of your pre-baby planning experience.

For more information about our financial planning services, please visit us on our website or call (516) 932-5130 today.