If you’re expecting, congratulations! This is a very exciting time for you. It can also be quite a stressful time financially if you’re not ready for the impact a new-born will have on your finances.
Here are just a few financial considerations to keep in mind before your baby is born
1. Life insurance
Do you have it and how much do you need? Now that you’re going to be a parent, you need to consider the impact of your life insurance product in the face of a new-born baby that will need financial protection for many years to come. Don’t forget to add your baby to your policy as a beneficiary once they are born. While this may be hard to contemplate, it’s essential to your child’s security. As is a will – if you don’t have one, get one as soon as possible.
2. Medical aid
Do you have it and who does it cover? Make sure it can cover your hospital stay and the birth, and that you add the baby as a member as soon as possible. You might need to upgrade or change plans to cover your new family.
From car seat to a brand-new car, babies bring with them many expenses you never had to worry about before. From furnishings to food bills, you will probably be paying more than ever before for daily life, and you might not be working in the beginning. You need to make sure you have enough savings and a back-up plan to sustain you financially once the baby is born. Financial planning is essential to ensuring the first few months at least of your baby’s life are calm and secure.
The same goes for saving as for spending – it needs to increase. While you should have been saving some money before you fell pregnant, you will now need to save even more but without putting too much strain on your current financial situation. Don’t despair – there are many ways to save more without breaking the bank. Start here.
5. Education planning
This is a special kind of savings consideration. Education is a hefty expense, even for those that earn well so, while it might seem early, the earlier you start investigating and committing to saving for your child’s education, the better.
All these elements will help ease your transition from expectant to full time parent. Let us take care of your finances so that you can focus on this precious time.
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