You can’t prepare for every part of parenthood. But preparing yourself for the impact it will have on your budget can help reduce at least a little of the stress. Here are the money questions you should ask when your first baby is on the way.
The Simple Dollar runs down nine financial considerations you should make before you officially become a parent. For example:
What’s our child care plan?
If you’re both planning on returning to the workplace, unless you have a very unusual work schedule, there will be significant patches of the week where you’ll need someone else to take care of your child. Who will provide that child care? You need to figure out that solution as quickly as possible.
What will we cut out to handle the new costs?
Like it or not, you’re going to have to cut some costs to make this work. Yes, your tax load will lighten up a little bit thanks to your new dependent, but it’s not going to be nearly enough to offset all of the costs.
Do we have a valid will and/or durable power of attorney and/or health care proxy?
All of these documents are important to have regardless of parenthood, but they become even more important when you do have a child because they will help define what exactly happens to your child should you no longer be able to care for that child. If you don’t have these documents, the state will decide (and there’s a good chance that you would be unhappy with that decision).
For each question, there are also recommendations for specific topics you should discuss. Check out the full article.
Nine Financial Questions to Discuss When Your First Child Is on the Way | The Simple Dollar
Photo by Daisha Jackson.