According to the U.S. Census, approximately five million moms stay at home with their children. Before heading down this path, step one is to examine your finances and make sure you’re taking care of the financial changes that come with leaving the workplace.
The cost of raising a child is high and getting higher every year. According to BabyCenter, you should expect to spend anywhere from $10,000 to $14,000 on your baby during its first year. Costs vary depending on income levels, how many children you have, and what lifestyle choices you make (namely child care), but regardless, it’s safe to say that deciding to have a baby can be a pretty big financial decision
The birth of your child will affect your taxes, insurance, budget, savings plan, and everything else that pertains to your financial life. Here’s a handy checklist of financial items to take care of before and after your baby is born:
Preparing for the arrival of a new baby is a busy time, and it’s important not to let nursery design and baby name books distract you from the important task of estate planning. Many new parents incorrectly assume that they don’t need to do any estate planning if they don’t have many assets. Even if you don’t have a large nest egg before you become a parent, your child’s well-being will become your most important “asset.” Determining who will care for your child in the event of your death, and arranging for his or her inheritance of your property is an important step that you should take as soon as you have a new baby.