(Newswire.net — January 12, 2021) — Babies are tiny bundles of joy and a blessing to couples who desire and conceive them. Since they come with the caveat of total dependency, parents-to-be are usually required to make a lot of preparations for their arrival. Financial concerns are one of the major aspects to consider since financial flexibility facilitates all the other preparations. The United States Department of Agriculture (USDA) Expenditures on Children by Families, 2015 notes that a middle-income married couple will spend on average $233,610 to raise a child from birth through age 17. Another comparably large sum is the cost of delivery, which can run up to $32,062 for a Caesarean childbirth or $22,734 for a vaginal delivery.Therefore, with these costs in mind, the best financial decision for an expecting couple is to make a budget that includes all the possible expenses they can think of.
There are several factors to consider when making a budget. The first concern is usually professional. Jobs bring in the bucks and, for women at least, a pregnancy means some time off from work, and not all jobs have good maternity leave allowances. With this consideration is the need to hammer-out the finer details of medical costs. Whether employed or unemployed, the expecting parent/s will have this financial burden to bear, sometimes for years to come. A good health insurance plan should help matters. Regardless, it is necessary to plan how finances would be covered and how sustainable the current income would be. Seeing the figures on paper will give one a good idea of whether additional income would be needed or not.
The next financial concern is classifying the budget into simple terms of a pre-baby and post-baby budget. The pre-baby budget would include the cost of baby gears, remodeling and preparing a baby-specific space, and the initial out-of-pocket medical costs.
The post-baby budget is very different and will include recurring costs such as diapers, baby formula, extra food items and pediatrician visits. In the longer term, it would also include college financing; the earlier the plans are made for this goal, the more manageable it will be in the long run.
Some of the more critical financial decisions that may be overlooked include adding the new member of the family to the will, family health insurance policy, or even establishing trusts to protect their eventual inheritance assets.
The final step is non-negotiable. If there is already an emergency fund, it needs to be expanded. If it does not exist, it needs to be created. An emergency fund can be useful in the event of unforeseen medical complications during or after delivery. You also never know just how quickly your child will outgrow the initial clothing or even toys that you purchase because restocking might include frequent visits to shops like the Happy Mango baby boutique. Because these costs are unexpected, there is no way to put a figure on this fund. The important thing is that it exists at all.
Creating a detailed budget with an emergency fund and contingency plans is important when planning for a baby. If these financial decisions are made early enough, it clears priorities just enough for couples to focus on what is most important, enjoying the birth of their child.