I want to start out by saying you don’t need to be out of debt, have thousands of dollars saved for a college fund, and be living in a 4 bedroom, 3 bath home in the suburbs to have a baby. Don’t even get me started on these statistics that say it costs over a quarter of a million dollars to raise one baby! It doesn’t have to and thousands of people are doing it on much less.
When we found out, rather unexpectedly, that we were expecting our first son just 10 months after we were married, I became a little overwhelmed to say the least. When I found out I was pregnant, I was 6 weeks from college graduation and in the middle of finishing up my semester of student teaching. I was anticipating job interviews not OBGYN appointments in my near future.
My first thought was, we are broke. We can never afford to have a baby. My mom said something that has stuck with me ever since,
“If you wait to have a baby until you have enough money, you will never have one.”
Babies don’t need our money. They need our love.
When I was searching around for ways to prepare my finances for having a baby, I only had 9 months to work with! 🙂 Most things I read involved YEARS of preparation!
If you don’t have years and only have months (or maybe even weeks) to prepare, here are a few simple things you can do to help you get on track now.
1. Get on a Written Budget
If you aren’t budgeting your money, you need to do so immediately! Making your money work for you is the first step in being prepared financially when baby arrives. I recommend using a zero-based budget so that you give every dollar a name. Getting on a cash system can really help you stay on or under budget when it comes to your expenses.
2. Start Putting Money Away NOW
You need to start socking money away in a savings account to pay for upcoming medical bills, baby items, clothing, diapers, furniture, and anything else that comes along. Don’t freak out! You can borrow a lot of baby stuff and add it to your registry as well. But you really should be saving so you are prepared when expenses do arise. Set a savings goal and work towards it!
3. Talk to Your Insurance Company
You need to find out if you have a deductible, what it is, and what is covered by your insurance. Do you have maternity coverage? Is it limited? Will you have co-pays at your regular doctor’s visits? Will your insurance cover an epidural? What about extended stays in the hospital? I highly recommend calling your insurance company and talking to someone about your coverage. Finding out about what you will be responsible for paying before you get the bill will help you to prepare.
4. Talk to Your Doctor’s Office & Hospital Where You Plan to Deliver
Our doctor’s office went over an estimated bill during one of our first visits. Our actual bill came out within $100 of that estimate. We had separate bills for our doctor’s office and the hospital stay during the actual labor. Make sure to check both places to find out what you will be expected to pay. Also, ask about “pay in full” discounts. I was able to receive 10% discounts from both my doctor and the hospital simply by asking for a discounted price. It certainly never hurts to ask!
5. Prepare for a Reduction in Income
Whether you are planning to become a stay at home mom or just want to take 6-12 weeks of maternity leave, your income will probably shift, at least temporarily. Make sure you are prepared for the decrease in income before it happens.
If you plan to become a stay-at-home mom, I highly suggest lowering your expenses and living off of one income during your pregnancy. This will prepare you for when the baby arrives and also give you the opportunity to pad your emergency fund by saving the other income while you’re still working.
If you plan to take maternity leave, find out from your employer their guidelines for maternity leave pay. Some employers give you 6 weeks paid, others have you take your sick leave to cover the maternity leave, while still others give you 6 weeks of unpaid leave. Make sure you talk to your employer as soon as possible to find out what your options are so you can be prepared when the time comes.
6. Set up Auto Payments for Bills
You will want to have your bills set up to be paid, especially during the time you are in the hospital. While most hospital stays are only 2-3 days, something unexpected could happen and you could end up staying a week or more. You don’t want to be worrying about getting your bills out on time while you are cuddling your sweet new baby.
7. Research Ways to Have a Baby on a Budget
You can read my series on having a baby on a budget or find those posts below. There are a lot of ways to save and I have touched on just a few of them.
- Cloth Diapers
- Decorating a Nursery on a Budget
- How to Save on Baby Clothes
- How to Save on Baby Food
- How We Saved on Baby Gear
- 5 Baby Items We Would Not Buy Again
- 6 Baby Items We Splurged On
Head on over to Pinterest to find even more ways to save!
How did you prepare your finances for baby’s arrival?