Financial Tips for Pregnant Parents
Having a baby changes everything, including the way you live your financial life. Consider the following as you begin your new life as a family and get off to a great financial start.
Record Pre-baby Spending Habits
By tracking your spending habits before the baby arrives, you can identify expenses that can be eliminated or pared down to accommodate the new addition into your old budget.Review Your Disability Coverage
If your current disability income insurance will not replace enough of your income to pay your bills and provide your larger family the lifestyle you wish, you may want to consider purchasing additional coverage either through your employer or on your own to adequately cover your new family's expenses. Consulting a financial professional can help you determine your family's exact disability income needs in the event a sickness or injury prevents you from working.Consider Additional Life Insurance
For most parents of young children, coverage equaling between five and ten times their annual salaries should generate enough income to cover their expenses if an unexpected death occurs. Consult with a financial professional to determine what life insurance plans are best for you and your family.Discuss the Pros and Cons of Staying Home with Baby
If mom or dad is staying home to take care of the baby, calculate how the loss of income will affect the family budget. Remember there are both advantages and drawbacks to this arrangement: while you'll have one less salary to count on, you may also have fewer dry-cleaning bills, lunch expenses and other work-related costs.Look into Flexible Spending Plans
Some employers offer this benefit to help cover dependent care expenses. You may be able to direct a portion of your pre-tax wages to a personal account from which you can draw reimbursement for child care costs. Since you'll have less taxable income after channeling dollars into the plan, you'll pay less in taxes and increase spendable income. Consult a tax professional for more details regarding your specific situation.Shop Early for Baby
By spreading out major purchases throughout your pregnancy such as a crib, changing table, infant car seat and stroller you will avoid a budget crunch in the ninth month. You'll also have more time to comparison shop and find items on sale.Wonder What this Means for Your Family?
Contact a Thrivent Financial representative for help setting goals and preparing a strategy that will help you thrive in parenthood.201002133