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