Welcoming a new addition to your family is such an exciting time in your life. Any lifestyle change can bring financial strains, and welcoming a new baby or a child is no exception. Here are some helpful tips for preparing for your new family member:
Buy Secondhand and Say Yes to ‘Hand-me-downs’
Reach out to your community by exploring consignment shops, social media outlets like Facebook Marketplace, or Facebook groups to purchase secondhand. There are plenty of groups or shops devoted to buying and selling almost new items at a fraction of the cost! Some shops even offer reward programs for buying or selling clothes. Just remember to always buy from trusted sources and only utilize secure forms of payment. When excepting hand-me-downs, search for product recalls on items like mattresses, cribs, or swings.
Save Up for Maternity and Paternity Leave
Depending on your employer’s policies, you may be eligible for maternity or paternity leave. Check with your Human Resources contact to find out what benefits your company offers. Some companies have options like short-term disability payments or require you to use PTO. This information should be detailed in your employee handbook if one is available. Knowing what to expect will help prepare you to save or budget while you are on leave. Budgeting will also help prepare you for childcare or other miscellaneous expenses.
Review Insurance Policy Options
If you have insurance through your employer, work with your Human Resources representative to find the best option for your budget and preferred coverage level. If an employer does not cover you, review healthcare options through the Marketplace.
Predict Expenses and Budget
Do your research and create a system to manage expected expenses, including diapers, formula, furniture, clothing, car seats, strollers, and accessories. Don’t forget recurring expenses like insurance, child care, or educational savings, to name a few. While doing your research, if you plan to send your child to daycare, make sure to factor that into your budget right away. Keep in mind that you may have to pay a deposit to secure your child’s place until it is time for them to go to daycare. Make sure to check in with any potential childcare facility to review these policies. Starting an emergency for unexpected expenses and utilizing a Health Savings Account (HSA) can help prepare you and ease financial stress. When someone new joins your household, it’s a great time to re-evaluate what you want to save in case of an emergency.
Traditions Bank is Here to Help
Taking these steps might seem overwhelming, but at York Traditions Bank, we’re here to help. Contact a member of our Personal Banking Team to create a savings plan that works for you. While you’re at it, explore options to save for your child’s future, like a PUTMA or 529 plan. We’re always here to help you find creative ways to save and build a healthy financial future for you and your family.
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