Financial Planning When You’re Expecting Your First Child

by Emma

Preparing for a baby is exciting, but it’s not just shopping for tiny clothes and seeing heartwarming ultrasound photos. Preparing for a baby requires a lot of financial preparation that, honestly, needs to begin before you ever get pregnant. However, since that rarely happens, and pregnancy many times is a wonderful surprise, you need to start preparing as soon as the pregnancy test reads positive.

From talking to a lender about securing a home loan if you have to move to a bigger house before the baby is born to getting the bras and pumps you’ll need to breastfeed the baby, there’s a lot to do in the short months you have until you bring your bundle of joy home from the hospital. In this article, you’ll find a few tips to help you with your financial planning when you’re expecting a baby.

Determine if you’re purchasing a home or not.

purchasing a home

For many expectant parents, the home they live in isn’t big enough to add a baby into the mix. Most couples who don’t have children move into apartments or houses that only have one bedroom, planning to upgrade when they have children. Once you find out what you’re expecting, you have to decide whether you will make your small space work or purchase and move into a bigger home as a proud, new homeowner.

If you decide to purchase a home, you need a guide to home loans to find the best house to fit your needs. Don’t just apply for a loan from the first lender you come across. Do your research to determine the best interest rate you can get and whether you’re eligible for a conventional loan, an FHA loan, a VA loan, or an adjustable-rate mortgage. There’s a lot that goes into procuring a loan from a lender to purchase a home, such as how high your credit score is and how much of a down payment you can afford. As the borrower, you need to do your research and know what monthly payments you can afford before you go in to talk to the lender.

Prepare for parental leave.

parental leave

The days when only the mother went on maternity leave are in the past, and now many fathers take paternity leave to help with the baby after he or she is born. As soon as you find out you’re pregnant, you need to determine if you and your spouse can take time off after having the baby. This information will let you know how many days of leave you can expect and how it’ll impact your financial situation.

For example, many things will need to be purchased for the new baby and things that you’re going to need as an expectant mom. You’re going to need new clothes, new bras, and if you’re breastfeeding, you’ll want to go ahead and purchase a hands-free breast pump and nursing bra with accessories. You can find everything you need for nursing your newborn at Simple Wishes for a reasonable amount of money.

Build your budget.

budget

The cost of everything to prepare for the birth of your baby can be staggering, so you’re going to want to build a budget you can live with and start saving now. It’s important to anticipate bills such as your out-of-pocket health insurance costs, as well as the first year of your baby’s life, which is going to be quite expensive.

These are just a few of the best tips for helping you prepare financially when you’re expecting a baby. A baby is a miracle waiting to happen, but they’re expensive, so you need to be prepared.

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