Financial Baby Steps For Raising Children
Bringing a child into your life changes everything, including your finances. Paying hospital bills, the cost of adding another person to your household, and saving for college are all daunting prospects. With proper preparation, however, they don't have to be.
Here are some things to think about even before you start decorating the nursery:
Prepare for medical bills. Even before delivery, doctor visits start to add up. You may want to set aside extra money should any expenses arise before, during, or after the birth. Get a good idea of your insurance coverage as soon as possible. Having a child means another set of regular doctor's appointments, which will be especially frequent during those first months and into childhood.
Account for maternity and paternity leave. You just don't know how much time you'll need once the baby comes! Mom (and dad!) might want to look into their parental leave options or rack up some extra vacation days/savings.
Daily life is about to be completely different and more expensive. From diapers to clothes to childcare, costs will grow just as quickly as your little one will. From day one, you'll start needing goods and services you've never needed before. In a 2010 USDA report, it was found that in the first year of a baby's life, an average middle-income family spent an extra $12,000, a number that will only increase.
Start Saving Today. The cost of a good education has never been higher. Start planning for this important investment as soon as you can with an education savings account from Columbia Bank. The best way to take care of your child is to set them up for future success.