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Congrats! You and your spouse recently learned the pregnancy and can’t wait to see this little angel arrive.
Besides being caring and loving parents, you have certain financial concerns and want to make a “baby” budget to get everything handle.
Here are 5 expenses you probably did not think about.
#1 Health Insurance
As a healthy couple, you did not need to care much about health costs. You think you have a good plan and are good with it.
First, don’t forget to add that mini you as a beneficiary. Then make sure it covers all you could need: glasses, dentist (braces can cost you an arm and a leg!), drugs and so on.
If it does not, include in your budget a saving amount for those purposes. If you never need it, which I doubt, you still can use it for something else.
#2 Life Insurance
Life insurance is something a lot of people forget about. Yet, it is one of the most important things when you start a family.
If something would happen to you and/or your spouse, how would your family live?
Would you rest in peace knowing they can’t afford the house anymore? Or that your spouse has 2-3 jobs to make sure your kids have everything they need?
How much money would you or your spouse need to live with no worries but the grief of losing the loved one? Is that the money needed for 6 months, a year, 3 years?
As parents to be, you need to ask yourself those questions and take action to make sure you don’t leave your family in trouble if something should happen.
#3 Preparing a Will
To differentiate life insurance from a will, think about life insurance as money you get when you die and the will as who will have this money and all the values you own.
In fact, a will also include your house, your savings (and debts), your retirement or pension plan and all the other values you could have.
If both parents should die (I know it’s hard thinking about those issues but you need to), who would take care of your child?
Is it the same person who will look over your child’s money?Is your descendant going to use that money right now or only at a certain age?
Who do you trust to raise your kids as if it were yourself? Will other family members get something?
Those questions might seem too awkward as a couple, but as parents you need to think about the future of your child. Also discuss your plan with the persons involved in the biggest decisions.
Are they whiling to take care of your family? If the person refuses or is incapable of, think about a plan B.
Read full post on that topic at DoNotWait!
#4 College Savings for Your Child
I know, you probably haven’t seen your baby yet so college days may seem very far.
The truth is matter, at least you will be prepared to the situation when it comes.
#5 Couple Time
How is that expenses? Consider it babysitting expenses or restaurant costs or whatever else you like to call it, I simply consider it as “costs” of having a family.
Babies and kids can cost something for the couple, meaning you have less time together.
Do not forget to take time for the two of you and try to keep your love and passion alive.
Your kids will be happy knowing their parents are happy together. It may look simplistic, but it is one of the best gifts you can give your family.
This guest post has been written by Robert, a financial planner who is involved in the retirement planning and savings blog DoNotWait!
Photo Credit: sabianmaggy