Whether you’re thinking about having a baby or your due date is fast approaching, there’s no need to stress about finances. By taking the necessary measures today, you can learn to cover these new expenses without falling into debt. Here are five steps you can take to financially prepare for a growing family:
Adjust your monthly budget
When your little one arrives, you’ll need to spring for baby gear and furniture, a new wardrobe, diapers and possibly child care as well. According to the USDA’s most recent report on the cost of raising a child, the average middle-income family will spend approximately $12,350-$13,900 on child-related expenses before their baby’s first birthday.
Most of these expenses will be ongoing, and it is best to make room in your budget for these new items before the baby is born. Spend some time reviewing your monthly budget to look for ways to cut back on spending and give you that wiggle room to cover baby-related expenses.
Set up a baby account
It’s important to put money away for baby costs as soon as you plan on having a baby or find out you’re expecting. Consider setting up a new savings account with SeaComm for all baby expenses to keep this money separate from other savings. You may also want to automate these savings by setting up a bi-weekly transfer from your payroll or checking account to your “baby account.”
Estimate prenatal care and delivery costs
While exact amounts vary by state and by insurance provider, prenatal care and delivery can cost thousands of dollars. This includes out-of-pocket expenses, co-pays and insurance deductibles. Your Health Savings Account (HSA) at SeaComm allows you to make tax-deductible contributions and withdraw money tax-free to pay for out-of-pocket, qualified medical expenses. Click here to learn more!
Pay down debt
There’s more than just a nursery to set up before your baby’s arrival. It’s best to get your finances in order to make it easier to manage all the new expenses and prepare for your child’s future. If this involves getting rid of a mountain of debt, you can choose to combine all your outstanding balances into one convenient monthly payment.
With SeaComm’s loan pre-approval program, LoanEngine™, you might already be pre-approved for a consolidation loan! If you qualify for a pre-approved offer, you’ll be presented with it through our SeaComm Mobile app or NetTeller™ in the “My Offers” tab, via email, and/or a letter through the mail. Click here to login to your NetTeller™ to view your current offers. If you don’t have any offers at this time, be sure to check back every 60 days.
Start saving for college
As hard as it may be to believe, your little one will one day be all grown up and ready to go to college. With the rising cost of college tuition, this can mean paying a small fortune to give your child an education. It’s important to start saving now to give those funds the best chance at growth. Call (800) 764-0566 to speak with a SeaComm representative and learn about the best savings options for you!