Introduction

As a parent, you may feel like every day is a new challenge. But there are ways to prepare for the changes and challenges that come with having children. Having an open and honest discussion about your money situation with your partner and preparing early can help you weather these changes smoothly. The following six steps can help you prepare for the financial realities of parenthood:

Expect the unexpected.

You know how it is: you get your life all under control, and then a baby comes along. Suddenly, diapers are an expense, and you’re going to the grocery store three times in one day for some reason. You have to keep your wits about you when it comes to money management during this time period because things will change quickly—and sometimes unpredictably.

To help prepare yourself for whatever might come (or go), here are six money moves that can make your life easier once child arrives: genyoutube download youtube video

Make sure you’re on the same page.

• Do you want to fit in a few more dates with your partner before the baby arrives?
• Are you expecting that your relationship will be different after the baby comes?
• Are you thinking about how much time it will take for both of you to care for and bond with this new person?
• Is it important for one of you to stay home with the baby in those early months, or would both parents prefer (or need) to work outside the house during this period?

Draw up a will.

Securing your estate is important for both you and your baby. A will can help ensure a smooth transition after death, protect the interests of loved ones and ensure that what you leave to family members is managed as you would like.

Drawing up a will can be daunting, but it doesn’t have to be complicated or expensive. You may want to seek out legal advice from a lawyer or online service; however, there are other options available if you’re on a budget (and not sure where to start). For example, some states allow those with no legal training or formal experience—even non-lawyers themselves—to draft simple wills without engaging an attorney at all. Other states require that all wills be prepared by attorneys only; if this applies where you live (or if it’s not clear), consult with an experienced attorney before proceeding further down the DIY path.

As far as contents go: Make sure any individual who has power of attorney listed in their name knows about this document ahead of time so they can make informed decisions should something happen while they’re acting on behalf of someone else’s interests instead of their own.

Know your benefits.

• Know Your Benefits

The first step in understanding your benefits is to know what is available to you. If you work for a large company, chances are it already has a health plan in place that covers all employees and their dependents. This can be a gold mine of information and resources, but only if you take advantage of them! Take some time to read through the materials provided by your employer and learn about any programs or services they offer. You might find out about free classes on breastfeeding or baby sign language, as well as discounts on childcare services near home or work; this way, when it’s time for baby to arrive and you’re feeling overwhelmed by everything else going on in life, at least one thing will be familiar and comfortable—and maybe even enjoyable!

Find out what your employer’s maternity leave policy is.

This is a conversation you need to have with your boss ASAP.

• How long maternity leave is available?
• What amount of that time will be paid?
• Can you take leave before the birth of your child (if applicable)? If so, how much time?
• Can you take a leave of absence after the birth to care for a sick child (if applicable)? If so, how much time?

Factor in child care costs before reducing or quitting work.

The cost of child care is a big expense for many families, one that can be more than a mortgage payment. In fact, according to the U.S. Department of Health and Human Services, in 2015 the average annual cost for center-based care was $9,589 and for home-based care was $4,862 (the average number of children in each family). Many parents don’t realize just how expensive childcare can be until they pay their first bill after having their first child.

As such, it’s important to factor in these costs when deciding whether or not you should reduce or quit your job after having a baby. If you have two children who require full time childcare while both parents work outside the home 50 hours per week each at an hourly wage rate of $10 per hour (again according to HHS), then your total estimated annual cost would be approximately $30k – minus any subsidies received through government programs like the Child Care Tax Credit or Flexible Spending Account Plan held by one parent which would reduce this expense even further but still require other funds being available when considering this decision

Being open, honest and realistic can help you weather the challenges that come with parenthood.

Being open, honest and realistic about your finances is one of the best ways to help you weather the challenges that come with parenthood. Here’s how:

• Share your financial goals with your partner. Discussing your financial goals for the future will help you be on the same page when it comes to spending decisions. It also gives both of you something to work toward together.
• Talk with family members about how they plan on contributing financially towards raising the baby, including paying for childcare or helping out with expenses like diapers and formula.
• Be honest with yourself about how much time and energy it’s going take to care for a newborn—and then adjust accordingly! This can include scaling back on work hours or taking on an additional part-time work project during this time (if possible).
• Make sure all parties involved understand each other’s expectations regarding healthcare costs related specifically related specifically related specifically related specifically related specifically related specifically related specifically related specifically related specifically related specificallyrelated…

Conclusion

Being open, honest and realistic can help you weather the challenges that come with parenthood. It’s also important to remember that it’s okay if you don’t have all of these things figured out before your baby arrives. Ideally, though, you should have at least some of them in place by then. Your children will thank you for it!