Womb to Bloom - Maternity & Beyond

If you are like most dads to be, you may have some anxiety about financial planning for the new baby. If you are the primary breadwinner in your family, it is important that you get organized prior to the baby’s birth, so that you can feel confident about your financial future. There are many things to think about: life insurance, investments, maternity and parental leave, and the hidden expenses that come with having a child. With our guide, you can sit down and decide what is best for you and your family. By the time your child is born, you will have a plan you can use to look after the whole family.

Life Insurance: You may already have some life insurance in place, but you should look carefully at your policy and decide if it has enough coverage, now that you are becoming a father. You should consider you yearly income when deciding how much life insurance is right for you: most experts believe that your annual income, multiplied by seven, will help you arrive at a logical amount.

If you don’t have this much life insurance in place, you should beef up your policy before your baby is born. Also, you may want to increase your partner’s life insurance, even if she’s a stay at home mom. Her contributions, in terms of housework, cooking, and caring for your child, are to be factored in when arriving at a number. How much would it cost for you to get all these services if you were on your own? Noone likes thinking about such things, but it’s important to consider worst-case scenarios when doing insurance planning for your family.

Investments: Sit down with your wife or partner and discuss your long-term financial goals. It’s important that both of you are on the same page with regard to your shared finances. You must think about the best ways of saving for college expenses for your child, and investing for your retirement.

The sooner you begin to put money away for college and retirement, the more you will have when it is really needed. If you are unsure about how to get started saving, when you already have so many bills, consider investing your tax refunds to start a college fund. Make sure you take advantage of any benefits at work, such as 401(k) plans: your own contributions will be matched by your employer’s contributions.

Maternity and Parental Leave: The amount of maternity leave your partner will be entitled to will depend on which state you live in: six weeks of paid leave is the norm in most states. She will receive a portion of her salary until she goes back to work. You will have to pay taxes on the amount of money you receive when tax time comes around in April, so plan ahead. With parental leave, you can take up to twelve weeks of unpaid leave to look after your new child. Remember that you can claim your newborn as a dependent on your taxes, which should help a bit.

Hidden Expenses: Babies need so much: equipment, furniture, food, diapers, and medical care, just to name a few things on a long list. You will need to factor in other expenses as well: babysitters, any medical needs or prescriptions that are not fully covered under your insurance, and other incidental expenses. Make sure your medical coverage is the best it can be at this time, it will provide you with a lot of protection from hidden expenses.

Call your provider and ask a lot of questions about what is and is not covered under your current plan: surprises could be very expensive. It may be worthwhile to investigate programs in your area that allow you to enter into a babysitting pool, where everyone in the community trades babysitting in a barter system. You will have to do your share of babysitting, but you will be entitled to free services in return.