3 Easy Tips to Saving Money When You're Expecting a Baby
01/25/2022
So you're expecting a baby – congratulations! But as excitement sinks in, so does the ever-important question, "How am I going to afford a baby?". According to experts, the most basic cost for raising a child is an eye-bulging $260,000. That's not including the other highly variable factors like how you got here – IVF, Donor, Egg Freezing, Surrogacy, and Adoption can all drive up the price of having a child, with IVF costing at least around $12,000 per cycle. Nevertheless, there are ways to prepare for pregnancy to ease your budget stress and help you start saving right now.
Know Your Coverage
First, it's essential to call your insurance and determine what is covered under your plan. If you live in Maine and do not have insurance, you can visit the MaineCare site to apply for free or low-cost healthcare. While you're talking to your insurance company, don't be afraid to ask questions about everything, including:
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Are prenatal care, labor, and delivery covered benefits under my policy?
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Do I need a referral from my primary care doctor to see an OB-GYN or other specialists?
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What prenatal tests are covered (ultrasounds, amniocentesis, genetic testing, etc.)?
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Which hospitals in my area are in my insurance policy's network?
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Questions about nontraditional births (at-home, midwife, etc.)
Always check with your insurance provider before making any big decisions. It's better to do extra work on the front end, so you're not getting any surprise bills in the mail later. Additionally, talk to your HR department to see your maternity/family leave options if you're working.
Start a Baby Budget
Once you know what insurance can cover, the next best step is creating a baby budget. This means creating an account where baby expenses can be stored away during pregnancy or as you begin your fertility journey. While there's no exact formula for this, the main point is to get started as soon as possible. You can reallocate savings, reprioritize from a vacation fund, or start from scratch.
Don’t forget that bonus funds can be found in a variety of places – you can use your Health Savings Account, Flexible Savings Account, or open a free checking account with rewards like Atlantic’s Kasasa, to get paid in cash when you make those baby purchases. Knowing that you’ll have a little extra cash for your newborn can create peace of mind for everyone involved.
Go Secondhand Shopping
From maternity clothes to baby blankets and strollers, searching online, local thrift stores, and yard sales can be a lifesaver. Facebook Marketplace, thredUp, Mercari, eBay, and even asking family and friends are great resources for getting discounted or free baby necessities. Lastly, asking for advice from other new parents will clarify what and where to buy.
As you're considering all your options as you prepare for a new addition to your family, try not to worry if you didn't start soon enough. Just focus on becoming financially prepared from this point forward. Take your time, make a plan, and enjoy the journey.
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