Financial Fix: Preparing to have a baby

Tiny Hay, founder of Napkin Finance, is all about preparation and if you have a baby on the way or thinking about starting a family, you need to get your finances in order. Here are a few things she thinks are worth considering when a baby is on the way:

Prepare Your Finances

  • Research what ‘start up costs’ are for having baby. This includes how much more per month you’ll need to budget before and after birth.
  • Reassess Your Insurance
  • Some types of plans are better for parents and for childbirth. Examine your policy to see what you are covered for.
  • Check In On Parental Leave
  • One of the most important factors in having a child is parental leave. Important questions to ask your employer include: Does your employer cover parental leave? What is their policy? Is it paid? How long is it for?
  • Sign Up For Disability Insurance
  • Find out if your employer offers disability insurance. Ensure it covers you for complications following childbirth.
  • Start an Education Fund
  • The best first step is to start depositing money into a 529 college savings plan. These plans offer substantial tax-advantages and can be used to pay for most 2 and 4-year colleges.
  • Save Where You Can, Spend Where You Should
  • Spend on important safety items to ensure quality, but don’t overdo it on clothes and toys.
  • Take advantage of hand-me-downs

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