I'm a Baby!
We should start by assuming you're not a baby. You're most likely the parent, grandparent or godparent of a newborn. If you are a baby we want to congratulate you on your advanced reading skills.
The birth of a child is quite possibly the most exciting time in a person's life. Saving money for a newborn's future is one way to ensure that the child has some financial stability when he/ she gets older. There are numerous options for saving money for the baby, however some options have marked benefits over the other.
Infant Expenses/ Planning Ahead
Ask any parent and they'll tell you that babies are expensive. Below is a list of things for planning or expecting parents to consider.
If you don't have insurance through work you'll want to take out private health insurance before you become pregnant. Some insurance policies will require you to be a member for 12 months before you can claim for pregnancy-related costs. Each policy is different, but when expecting, Insurance can be your best friend. See your health care provider for more information.
While You're Pregnant
When You're a Parent
Budget: This word is getting repetative isn't it? It's important to stick to your budget. If you can't stick to it one month set a plan on how you will get back on track. This is where having an emergency savings account is necessary.
Free Stuff: Free stuff can be your best friend when working on a tight budget. Instead of buying a new book, visit the local library. (North Mankato & Mankato) Walking to the park for a picnic can provide hours of free entertainment for you & your child. Also, don't be afraid of hand me downs or gently used items, it can be a good way to purchase fun new clothes at a fraction of the cost. Check out ONCE UPON A CHILD or other local thrift shops.
There's a host of other financial tips and traps that you should consider, but the ones above will at least point you in the right direction. Getting the right financial system set up at the start means you have to spend much less time thinking about it down the track. To use a cliche early parenthood is one of the most wonderful times of your life - it really is - so you don't want to waste it on unnecessary stress.
A couple items to consider are:
Savings: Practice living on a reduced income BEFORE your child is here. Find out approximately how much insurance will cost to carry on your new bundle of joy.
Scheduled Transfers: Set up a "scheduled transfer" to your childs savings account. Coordinate this transfer with your pay periods and use these funds to help pay for baby related expenses.
CLICK HERE to learn about MVFCU's High Yield Savings Accounts.
Setting up a budget is one of the most important things to do when preparing for a new member of your family.
Tax Deductable Medical Expenses?
Turbo Tax covers different pregnancy expenses that may be tax deducatable. CLICK HERE
Speaking of Tax Deductions!
Remember that the newest member of your family also gets you some money back from your Uncle Sam. See your accountant for more details.