Are you considering expanding your household? If you’re a couple who’s thinking of having a child, that can be really exciting. However, adding a new member into your family isn’t a casual decision. You’ll need to start making practical contemplations concerning finances, career pathways, and mental preparedness for things like IVF, baby adoption, and homeowners’ insurance. So, if you are contemplating starting a family, use these primary considerations to inspire reflections and discussions with your spouse way before the baby arrives.
1. Can you afford having a child right now?
Starting a family can be extremely thrilling, but it is also demanding and expensive. According to Forbes, the median cost of raising a child in the U.S. is $227,000—and that’s not even including college tuition. Do you have adequate cash to mitigate the added spending?
Here are a few elements to consider when evaluating the cost that a kid will add to your current budget.
- Income
- Space
- Baby care costs
- Medical costs
Income: If one partner will take significant time off, you might have to manage on a single income for some time. Research parental leave options your employer offers to determine the amount of savings you need in advance.
Space: If you don’t have adequate room for a nursery in your home, you might need to renovate your current property, or buy or rent a new, bigger house to accommodate the baby. That’s right: A baby might have you make the transition from renter to owner. Most lenders have home loan calculators, which can help you determine the interest rates and plan your mortgage repayment based on your loan term and loan amount, should you choose to take a mortgage to acquire a bigger home.
Baby care costs: This comprises of everything including, infant formula, nappies, laundry detergent, nursery furniture, diapers, toys, baby clothing, and bottles. If you both intent on returning to work as soon as possible, you might also need to contemplate planning for childcare services.
Medical costs: The medical expenses related to having a child accumulate quickly, as you’ll have birthing and obstetric appointments. In the case of fertility issues, remedies such as adoption and In vitro fertilization (IVF)—whether natural cycle IVF or conventional IVF—can be costly.
2. Have you researched warehouse-club membership options?
You might need to consider purchasing supplies in bulk to obtain significant discounts and lower your travel costs to and from stores. Membership of a warehouse club offers such opportunities. However, bulk purchases might lead to not only overbuying but also impulse buying. Nevertheless, you can stock up on essential goods you consume and depend on the most, which saves money and time.
3. Are you ready?
How ready are you to discuss modern fertility methods, such as natural ivf , standard IVF, adoption, or financial topics like how to share the cost of monthly mortgage repayment? Your relationship should be stable, for starters. Ensure you and your partner read from the same page before deciding to start a family.
Ensure you aren’t having a baby to repair intimacy or trust issues. Having a baby is a permanent commitment to parenthood. The commitment contains everything from several night feedings in your baby’s early days to monetary expenditures for when your baby starts going to school, and beyond. Time for yourself or your partner might diminish significantly, which might affect your relationship.
If you’re prepared and able to provide a reliable and stable footing for your new family, you might be ready for family life.
4. Have you researched government programs that might benefit you?
Do you qualify for government programs intended to offset the expenses of growing or maintaining a family? Talk to a CPA or a financial advisor about your eligibility for various government benefits.
Research the available government protocols for paid maternal leave, full special leave for cases like prenatal doctor’s appointments, and unpaid or paid leaves for a parent. Furthermore, acquaint yourself with probable government benefits you might be entitled to, for instance, Family Tax Benefit, and Parental Leave Pay.
5. Will your health insurance cater to all your requirements?
Investigate how your existing health insurance plan will cover you and partner throughout pregnancy and parenthood.
Other insurance plans, such as income protection insurance, private mortgage insurance, and life insurance, are also worth considering when planning to become parents. Such risk-management alternatives could shield your new family against economic hardships if any unforeseen eventuality were to occur.
Parenthood is a huge responsibility. Eventually, it all comes down to whether you feel ready.
