There's no escaping it; having a baby is expensive. Until now you and your partner could enjoy your earnings with the freedom to spend your money on yourselves.
But your financial freedom is about to change. Perhaps you have alreay bought a house and a new car. But your baby is not self sufficient and you will need to make financial sacrifices to enjoy the company your child. And an extra family member may mean that you'll need to give up that sports car and move into somewhere larger.
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If you are already expecting, you are committed, and the most immediate costs are the medical costs of your pregnancy and delivery. These costs vary from city to city, and the coverage of your health insurance plan, but as with any stay in hospital can be quite considerable.
After this you will be faced with the costs of providing and looking after your child. Your financial responsibility starts as soon as your baby is born, because you will not be allowed to leave the hospital until your car is fitted with an approved car seat.
In many ways you have taken on a permanent house guest! You will need to supply equipment, clothes, toys and food. If you plan on going out, be prepared to find a babysitter, or make sure you are getting on well with your parents. Classified ads often list used baby equipment and can be a good way to save money.
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Over the next few years you will also need to think about education, perhaps a car and eventually college. Now is the time to start thinking about your changing finances and the best way to save for your child. If both of you are working, find out more about your company's maternity benefits. Some companies provide maternity benefits for the father as well as the mother.
Find out the details of your health plan so that you can be prepared for any changes that need to be made when you decide to have children. You should be prepared for a temporary loss in income while you are on maternity leave.
Like pregnancy itself, everybody's finances are unique, and you should talk to your investment advisor about your plans to have children and tailor your finances to suit your situation.
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