Nine Months of Financial Planning
The arrival of your baby is a very exciting time! There’s a lot of preparation leading up to the big day, and being financially prepared can ease your mind and allow you to feel more secure. Let’s look at some things that will help you better understand what to expect financially when having a baby:
Understanding Your Coverage.
Hospital costs for women who had no complications with childbirth ranges from below $2,000 to nearly $12,000. It is extremely important that you understand what your insurance plan will cover and what you will pay out-of-pocket. A nine month pregnancy usually involves at least a dozen doctor’s appointments. Not all insurance plans are alike and it can’t hurt to shop around.
If you currently participate in a health savings account (HSA) or a flexible spending account (FSA), it can be beneficial to increase your contributions. You can also start a savings account and keep it separate from the rest of your assets. This will allow you to put some money away for the cost of medical bills, diapers, or other baby needs.
Maternity benefits vary depending on your employer and whether you had any complications with childbirth. Understanding your rights is very important and you may also want to check to see if you qualify for additional unpaid time off under the Family and Medical Leave Act (FMLA).
Ask your employer if using your unused personal/sick or vacation time can be applied to your maternity leave. Don’t forget to account for any time off you need for doctor’s appointments.
You may want to consider talking to your employer about returning to work part-time after having the baby. You can still work (preferably from home), and you may be able to reduce or avoid some child care costs.
Life Insurance Options.
This is a perfect time to talk about life insurance policies for you and your spouse. You have a family now and financial preparedness is crucial. A financial planner can help you figure out what would work best for your family and can give you options to fit your budget.
Name brand or designer outfits, shoes, and accessories for your baby are very cute. However, those purchases can add up very quickly and we can’t forget that babies grow. Fast. It is not financially practical to invest in an outfit that your baby will outgrow in a few weeks. Though your baby may enjoy the embroidered diaper bag, they would much rather you save that money for their college education.
There are many financial factors to consider when making an addition to the family. If you would like to talk to someone about establishing and reaching financial goals, call or visit one of our branches.
The material provided on this website is intended for informational purposes only. Links to other web sites are provided for reference and do not constitute a referral or endorsement by Pioneer or its affiliates. Please note that such material is not updated regularly and that some of the information may not be current. It is recommended that you consult with a financial professional for assistance regarding the information contained herein.