July 29, 2013 2:40 am
Luckily, for those considering parenthood for the first time, there are steps you can take beforehand to help ensure you are financially prepared for that bundle of joy. The financial experts at Money Management International (MMI), a nonprofit credit counseling agency, offer the following five tips:
• Take control of your debt — now. If you have credit card debt, now is the time to create a solid debt repayment plan. You'll be surprised at the amount of money you can save once those monthly payments are out of the picture. To explore debt repayment options that offer a reasonable payoff time and the potential for lower interest rates, call a nonprofit credit counselor and register for a free debt and budget counseling session.
• Explore your health coverage options. Checkups alone for baby can cost more than $100 per visit. You may also want to explore adding long-term disability and life insurance coverage to your existing healthcare plan. Consider reviewing your maternity or paternity leave policies at your workplace.
• Know your options. Daycare is one of the largest added expenses that a new baby brings. Considering your childcare options is an important first step. According to a recent study by ChildCare Aware of America, childcare costs for an infant can average more than $300 per week.
• Practice living on a "baby budget." If you are planning to live on one salary, start now. This will give you an opportunity to make the necessary lifestyle changes and cutbacks before your bundle of joy arrives, making for a much easier financial transition.
• Get tips from the experts — other moms! No one can give you better advice than people who have been through the experience themselves. So ask your friends and family to share their advice or find a local or online support group for parents.
Source: Money Management International
Published with permission from RISMedia.