Starting a family is the biggest commitment that a couple can make to each other, as parents and also financially. It is essential to ensure that you know what to expect financially before you have a baby so that you can plan for these expenses.
It may be worthwhile chatting to a financial planner, such as Jason Vanclef, to get some advice and guidance on long and short term financial planning when you are thinking of starting a family.
The first expenses you will be looking at when starting a family will be medical costs. You will be needing scans and prenatal checkups. If you struggle to conceive you may want to look at seeing fertility experts and getting fertility treatment.
The birth of your baby will also be a large expense along with regular checkups for your baby and vaccinations.
Even if you have good medical insurance there will be some out of pocket expenses. If you are not on a medical insurance plan and want to go on one before you fall pregnant make sure to take careful note of any waiting periods that may apply to pregnancy and birth.
Make sure to also investigate the costs of having dependents on your medical insurance.
Initial Costs & Ongoing Costs
While there are some things you will be able to make do without there are plenty of things that you will not be able to do without when you have a baby. Some of these costs will be upfront and others will be ongoing costs.
If you are going to be traveling with your baby in a car you will have to buy a car seat. You will also need to buy nappies regularly for the first few years if you use disposable nappies or you will need to put in some money upfront when your baby is born to buy reusable cloth diapers.
If you are planning on breastfeeding you should consider investing in a good breast pump and if you are going to formula feed you will need bottles and formula.
In the first few years your baby will be growing like mad which means you will be needing new clothing all the time.
Other initial expenses will be a pram, cot, mattress, changing table and high chair.
Childcare is another large and ongoing expense that will need to be looked at if you plan on going back to work after having your baby.
Depending on where you live in the world your child’s education may be the biggest expense that you have. Some countries offer free schooling while on other places in the world it may be one of your biggest monthly expenses.
College and University can work out to be very expensive and you will need to start planning and saving as early as possible.
Will & Estate Planning
Nobody wants to think about passing away when you have young children that are dependent on you, but this is really something that you need to get ready as soon as possible to ensure that your children are looked after if you pass away unexpectedly.