Once you have a baby, your life will never be the same — and neither will your wallet. The expenses begin adding up as soon as you get that positive pregnancy test. Starting from that first prenatal visit and lasting through college graduation day (and even beyond), there are very few events in your life that spell financial change quite the way this one does.
Add these financial planning tasks to your to-do list today. Then try to tackle as many of them as possible before your baby arrives. You'll help protect both of your financial futures.
1. Sign up for health insurance before your baby is born
Health insurance is required to cover maternity and delivery care. You still may need to foot part of the bill, however, and this will depend on the type of insurance you have, your deductible and whether your care is considered in or out of network.
If you don't have health insurance, now's the time to look into your options. If your employer or your spouse's employer doesn't offer insurance or you're unemployed, you may be able to apply for a plan through the Health Insurance Marketplace under the Affordable Care Act. Many states also increase their Medicaid eligibility levels during pregnancy. You can contact your local Marketplace agent to see if you qualify.
2. Look into the cost of prenatal services
Find out what your health insurance does and doesn't cover, like screening tests, labor and delivery options, alternative therapies, doulas and prenatal vitamins. If your designated open enrollment periods fall during your pregnancy, consider switching insurance plans if you need better coverage. Also, look into your payment options — some doctors and hospitals will give you a discount if you pay in cash or often payment plans for paying bills over time.
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3. Research your workplace's family leave policy
A large majority of American workers don't have access to paid family leave. Check your employer's policy on maternity leave now. Also, look into your state's family leave eligibility: Will you need to take unpaid leave and how will it affect your finances? Can you save up now to make it possible?
4. Find financial aid for you and your baby
Look into any special programs you might qualify for, like the Special Supplemental Nutrition Program for Women, Infants and Children (WIC) and Medicaid. Some offer grants and scholarships specifically for single moms.
5. Purchase life insurance and disability insurance
If something should happen to you or your partner, you'll want your child to be financially secure. A life insurance policy can help cover childcare, cleaning, cooking and more if you or your partner pass away.
If you don't already have disability insurance, you probably won't be able to get it once you're pregnant — but your partner can. And since your partner's paycheck is more important than ever now, make sure that he or she has both short- and long-term disability coverage.
6. Check in on your financial accounts
In addition to purchasing life insurance, you'll also want to review the beneficiaries on any 401k and retirement accounts. It'll help ensure your money goes to the right person, like a spouse or parent, in the event something should happen.
7. Update (or write) your wills
You'll need to name a guardian for this child and any future children, and make financial arrangements for them if you and your partner aren't around. This process may feel daunting, but it's easier than it seems. You can create a will with an online will-maker service (no, you don't need a lawyer to write a will), but it's not a bad idea to consult with an estate planning lawyer to cover all of your bases.
8. Create a savings plan for your baby
If you haven’t started squirreling away already, start talking about how much you will put aside each month for your future child's future expenses, from preschool through college.
A 529 plan or Coverdell education savings account (ESA) can help defray big tuition costs that may come down the road. A custodial investment account can jumpstart their retirement fund or even help them purchase their first home.
9. Do a thorough, realistic budget assessment
Determine what kind of home you can afford if you'll need more space once the baby arrives (Slightly-less-tiny apartment? Cozy cottage? Expansive house?), what baby gear you'll want (top-of-the-line designer duds or hand-me-downs from your sister?) and what kind of child care you'll need.
Practice living on your new family budget before the baby actually arrives, and sock away what you're able to save.
10. Borrow maternity clothes
There are no rules saying you need to wear maternity clothes during your entire pregnancy. If you do feel like they'll be more comfortable, keep in mind that you'll only need them for a limited time. You can, of course, purchase your maternity clothes new, but this is a great opportunity to turn to your friends or community members and ask if you can borrow some. You can also shop at secondhand stores for cheap maternity clothes or adapt non-maternity clothes for pregnancy.
11. Buy baby gear secondhand
If you plan to borrow or buy used gear, make sure everything checks out with current safety standards. Most clothes, toys and baby bathtubs are fine to reuse, but you may want to invest in a new car seat or your own breast pump.
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