Birth of a Child
Raising children is undeniably expensive. According to 2006 data from the U.S. Department of Agriculture, the cost to raise a child from birth through age 17 was nearly $290,000 for families whose average annual income was $112,000. That's more than $15,000 per year. And children get more expensive as they get older.
Planning for a child ahead of time will help, and there are even some things you can do after the child is born.
Verify Your Medical Insurance
Your medical coverage is the most crucial part of paying for the birth expenses. If you do not have insurance, purchase a plan you can afford, but don't sacrifice coverage. You should try to get insurance even before you become pregnant because you may need to have a waiting period for hospital expenses to be covered. If you cannot afford medical coverage, check with state and local government agencies about assistance.
Clarify Your Family Leave Policy
You will need time off from work for the baby, so clarify what your employer's policy is regarding family and medical leave. You may also be able to use personal sick time and vacation time during the leave.
Start Saving
Before the child is born, start putting money away as soon as you can so you can be more prepared for the costs of birth and other expenses like baby clothes, or a larger family vehicle.
Once the child is born, get a savings account in the child's name. ProFed offers convenient EZ Saver Certificates that pay higher dividends and can accept additional deposits through your payroll deduction, in-person, or through automatic electronic transfers. Plus, you can help your child to learn the value of money with our Saving to Achieve Results (STAR) programs.
Make or Revise Your Will
A will isn't only for wealthy people. Wills can designate guardians for your children in the event of you and your spouse's death or incapacity. Check with a lawyer about creating medical powers of attorney.
Start a College Fund
Your child's biggest personal expense will come at college time. Talk to ProFed about a Coverdell Edcuation Savings Account. Pro-Fed Financial Advisors, Inc. can also help with qualified tuition (529) plans and investments that may assist with college expenses.
