by Chelsea Springli 
I’m not a parent yet, but I have enough friends and family with babies to know that a new baby brings a lot of excitement and family togetherness. It also means rethinking your family’s budget. Now is the perfect time to start thinking about education savings, life insurance policies and the new expenses that will require budgeting. As you grow your family the credit union has some helpful tips to help prepare you and your family.
Review Your Household Budget
Reviewing your budget is the most important part of financially preparing to grow your family. A new child will not only change the day-to-day dynamic of your family, but it will also change your spending habits. Review your current budget and start saving for your upfront and ongoing expenses. If you have time, start this about a year before you plan to welcome your little one in case they arrive early or have a minor financial setback in the next few months.
During the pregnancy, you’ll likely need to pay for or save for the following:
- Hospital bills
- Diapers
- Clothes
- Feeding supplies
- Bedding
- Car seat
- Stroller
Starting a few months after birth, you’ll have some ongoing expenses for the next couple of years:
- Doctor appointments
- Diapers or pullups
- Clothes
- Food
- Larger bedding
Determine Your Expected Income
You should also consider the amount of time you may be away from your job while you or your spouse are on maternity leave. Will you still get paid during that time? If you’re not sure, check with your employer to learn about their maternity leave policy. Maybe you decide to go to one income altogether. Knowing your expected income will help you create a realistic budget and see how much you can afford during this income shift. You will definitely need to start saving now to cover your expenses while your income is lower. Alltru Credit Union offers many options for saving your money. Start saving early so you can relax and enjoy this special time with your baby.
Start or Check Your Emergency Fund
If you don’t already have an emergency fund, now is the time to anticipate some emergencies. Life happens and most kids are accident prone, so we suggest having three to six months’ worth of living expenses set aside in an emergency savings account. To start, aim for $1,000 as your first goal.
If you have an emergency between now and baby’s arrival, what you have already saved in your emergency fund can cover these expenses without derailing your baby fund. A High Yield Online Savings account would allow you to save money quick and easy for both your baby fund and emergency fund.
Start Investing for Your Child’s Future
Investing for your child’s future may be one of the most significant investments you’ll ever make. Acting now will lay a dependable financial groundwork for the long road ahead. But where do you start? The credit union offers a CUbby Kids account for kids 0-7 years old. It’s a great kids account with plenty of perks that your baby can one day enjoy.
College is costly. A great way to begin saving for your child’s education is to open them a Coverdell Education IRA. Start your child off on the right foot so they’ll be financially prepared in the future.
Whether you use a CUbby Kids account, a Coverdell Education IRA, or both, saving for your child’s future can be built into your budget. Set up your contributions as recurring payments to you can save without conscious effort. After a while, you’ll likely smoothly adjust to spending a little less every month.
Get Baby Ready
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 they’re all grown up. Now is the perfect time to take the steps to set your family up for financial success. Remember to come to Alltru to open your new accounts for the family.
