Financial planning for delivery: What you need to know

Financial planning for delivery

Preparing for parenthood isn’t just tiny clothes and heart-warming ultrasound photos; it involves a lot of financial preparation.

Pre-delivery Financial Planning

  1. Maternity Health insurance. Having a baby is expensive, even when you have health insurance. You should forecast your expected costs fairly early in the pregnancy.
  1. Maternity/paternity leave. How much paid time you and your partner get off work can significantly impact your household finances in the coming year. Understand your company’s policies to get an accurate picture of how your maternity leave will affect you.
  1. Pre-baby budget. Understand how your income will be impacted in the coming months and have prepared a shopping list for your new addition, adjust your budget accordingly
  1. Post-delivery budget. Recurring costs such as diapers, child care and extra food will change your household expenses for years to come.
  1. Emergency fund. If you don’t already have an emergency fund, this is a great time to start one. Have at least 6 months of living expenses put away.

Financial Planning for the first month

  1. Add your child to your health insurance. Do it sooner rather than later, as you don’t want to be caught with a sick baby and no coverage.
  1. Child care. Get started on hunting down a day care or a nanny long before your maternity leave is over. This could potentially take weeks. And you want the nanny to get well acquainted with all of you before taking over.

Financial Planning beyond the first month

  1. Fund your vacations/retirement. When a child arrives, it’s easy to forget your personal goals and short-term and long-term plans. Stay on top of your retirement plans, make short term vacation plans and save for all of this systematically so that nothing is affected too much in your life.
  1. Save for education. College is mighty expensive of course, but so is LKG at the moment! But with a planned fund, you can make it happen!

With 18 or more years until your little one leaves home, time would seem to be on your side. But — as the saying goes — blink and he’s grown. Start now and make sure that your and his life is a financial success!