Financial Coaching Blog,  Our Story

How to Financially Plan for Your Baby

This is a must-have regular conversation. Do you know the average cost of having a baby in the US regardless of having insurance or not?

$10,808 (as of 2019)

However, the typical costs range between $10k – $30k. Suffice it to say, starting a family (or expanding one) is as important as buying a home…financially speaking. Having a child is a blessing & you don’t want that blessing to wreck you financially. That range above doesn’t include the costs associated after delivery.

So what can I do to plan?

The good news is, you have 9 months to make changes. Here’s some quick changes you can make:

~ Pay off debt. Less monthly expenses equal more liquid cash to cover expected & unexpected costs.

~ Build a Sinking Fund. Sinking Funds can be used for everything, from a new car, to a down payment on a home, to baby expenses. It’s like savings, except you are saving for something specific to pay cash for.

~ Max out a HSA. But only if you qualify. Health Savings Accounts are ideal for uninsured or underinsured individuals to pay for qualified medical expenses. To qualify you must be enrolled in a HDHP (high deductible health plan).

~ Downsize your home. I know. Sounds crazy, but I’m not talking about square footage, I’m talking about monthly payments. If there’s a chance to find something comparable with a cheaper payment, that’s more funds for mom & baby. Baby needs very little space. Save some of that monthly mortgage and put it to work elsewhere.

~ Sign up for baby registries. Even if you don’t plan on buying anything from a certain company. Many times they will give away some items, like a pacifier, baby wipes, small pack of diapers, etc just for signing up.

Anyone without health insurance wanting to start a family? I planned to draft a post about this route too.

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