Parents expecting their first child do anticipate mistakes because this is their first experience. If you were a babysitter in high school for the neighbor’s kids, you may know a little bit about babies and how to raise them or how to soothe the baby’s crying. It will be the same situation for the financial element attached to parenting. As a new parent, there are several ways that you can waste your money. Having the right information will save you tons of trouble and frustration. For this reason, it is best that you become aware of the money traps that new parents may fall into. To be a parent, it is expensive – from the diapers to the constant feeding, mothers and father can rack up a huge bill every year until the child gets to the age of 18. If you are thinking about adding a new child to the family, there are some mistakes that, if you avoid, can save you thousands of dollars.
Once you decide to start having children, it is best to have health insurance and if you do have it, using it is the best option. Baby delivery cost an estimated $30,000 for a natural birth and or a caesarean birth, the cost is $50,000. Even when you do have insurance, your co-pay is going to be substantial. For a caesarean birth, your co-pay could be somewhere close to $2,700 and for a natural birth, it could be $2,200. Therefore, you need to find out beforehand the type of medical coverage that you have to deliver a baby and to pay for the entire doctor’s visits during the pregnancy. For example, find out if your epidural is covered or whether the baby’s neonatal care is covered. In addition, you should find out whether your hospital or doctor accepts your health insurance or not.
Before the baby arrives, secure insurance for the baby too. However, another important aspect of being a parent, even before the baby comes is securing life insurance. Why? Having a baby is a life and death event. What would happen if you did not have life insurance then? Though, this is a topic that most expectant parents may not want to visit, it should be. You have to secure life insurance before your first trimester because most insurance companies will not offer coverage after that period.
Even when you are pregnant, you have to plan a budget for your household and especially so because there is a new baby to arrive as an addition to the family. You are going to need to purchase diapers and baby formula every week. You may have to solicit the services of a babysitter or daycare so that you can go back to work. You have to think about the expenses to raise that child and believe it or not, this includes starting a college fund. Last, but not least, some parents make the mistake of purchasing too much stuff for the baby. Remember, the baby is growing fast and unless you are planning to have another baby soon, try not to spend too much money on clothes and other items that the baby will grow out of.