Budgeting for a baby
How to prepare financially for pregnancy
From check ups to day care expenses, expanding your family can be taxing on the pockets. well before your little one arrives , you will feel the tole on your finances. Expectant parents have enough to worry about without the anxiety on unexpected expenses such as co-pays and complications. This is why budgeting for a baby can help relieve some of that concern.
All about insurance
1. Supplemental Insurance: One of my biggest regrets before we even deiced to try and conceive was not getting supplemental insurance such as Aflac. Since having a baby counts as a major medical procedure supplemental insurance will cover any loss of income and left over hospital bills. Originally, I signed up through my employer, but let this extra insurance slip when changing jobs. you can’t sign up for supplemental insurance if you’re already pregnant. And you have to wait at least a month before becoming pregnant.
2. Primary Insurance: Pre-natal visits, check-ups, ultrasounds , lab work, and even a trip to the emergency room can add up quickly. This is why it is important to get intimately acquainted with your insurance coverage. Find out what your insurance coverage includes and what your expected out-of-pocket contributions are. Knowing your plan will help you better prepare for any surprises such as a high risk pregnancy or last minute surgery such as a c-section.
Once the big day comes, and its time to meet your little one: There are a few additional expenses to cover.
According to Fair Health, a normal in network insured delivery in the United States on average is approximately $6,598 depending on the state you live in. Alaska has the highest cost of delivery at $10,413 and the Alabama the lowest at $5,017.
A C-section, however costs more with a higher out of pocket fee for an over all average of about $9,000 because it is considered major surgery. These costs can change based on your provider and where you live, with Alaska again at the highest with an average of $14,528, and Washington D.C. the lowest at $7,439.
Other costs can include a mother’s hospital stay and meals for both new parents per day, with stays anywhere from one to four days depending on the delivery. These costs may vary depending on if complications such as induction, prolonged anesthesia, excessive monitoring, or a baby in the NICU for any period of time would added expenses. Ask about these costs ahead of time. Checking with your insurance provider, doctor and planning emergency funds can help breakdown expected costs as well as unexpected.
Depending on the state you live in and your job benefits maternity leave can vary from 12 weeks of paid or unpaid leave, and paternity leave for fathers can be as scarce as whatever vacation time a father may have. If your leave isn’t fully paid for by your employer, then I suggest you prepare for this as soon as you conceive. Consider how many weeks will you take unpaid? bank-up vacation time or sick leave to cover some of it. Cut cost now and practice living on one income now. Create a plan for your your leave, that covers all your work you are responsible for as well as pitch working from home.
It can be expensive preparing for a but having a well planned budget will help you prepare for those expenses , leaving you time to focus on and one less thing to rob you of your already little sleep.