It seems like every couple who learns they are pregnant ends up reading the famous book What To Expect When You Are Expecting. However, most people are so overwhelmed with the good news that they don’t spend time to think about the smart money moves to make when the find out about the pregnancy. Here are five smart money tips you should know before the due date comes.
- BUDGET THE BABY ROOM- Especially if this is your first baby, many parents simply don’t plan for the unexpected cost of a new baby room. Once you start hitting the baby stores for the new crib and reclining chair alone, you could spend $1,000 before you blink your eyes. Factor in the cost of painting the room, new clothes for the baby, and all the accessories you will need, the new baby room can end up costing several thousand dollars or more if you aren’t careful.
- PAID LEAVE AND HEALTH INSURANCE- This is a great opportunity to read the benefits booklet closely from work and find out what the leave policy is for your company. Generally, leave will fall under the Family And Medical Leave Act(FMLA) that will guarantee you up to twelve weeks of unpaid leave. You may want to figure out what will be happening with your job during that time and research what your health insurance will cover.
- COLLEGE EDUCATION PLANS- With the rising cost of college education being between 5% to 7% per year, there is no time than when your new baby is born to get started with a college education savings plan. Should you set up a 529 plan, a Coverdell Education Savings Account, or a Uniform Transfer to Minors Act account? The important part is to set your goals for college education costs and begin a savings plan when the baby is born.
- WHERE WILL YOU LIVE?- One of the crucial things to figure out quickly when you become pregnant is whether or not your future school districts will meet your needs or you are bent on sending your children to private school. If you plan to live in your area for a long time, then you might want to do some research on what areas are good for overall schools (elementary, middle, high) or investigate the cost of local private school so you can plan for the future.
- AMAZON FAMILY- You might want to consider joining Amazon Family. Prime members save 20% on diapers subscriptions plus additional family-centric discounts and recommendations, compliments of Amazon Family. Amazon Family is free for all Prime members. Simply create a child profile during signup to begin.
What To Do Money Wise When You Are Expecting just might be the next book in the series of expecting books. Use these five tips to help you save money on your bottom line.
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Ted Jenkin is a frequent guest columnist for the Wall Street Journal and Headline News Weekend Express. He is the co-CEO of oXYGen Financial. You can follow him on LinkedIn @ www.linkedin.com/in/theceoadvisor or on Twitter @tedjenkin.