Starting a family can be an exciting yet daunting thing. There are many things to think about such as the name, the nursery, and the changes to your routine that will surely come. Not to mention the unknown financial needs that it will bring as well. Especially for new parents, it can be hard to know what to expect at a time when medical expenses are climbing rapidly. And while it is impossible to know exactly what it will cost, there are some things that every prospective parent should plan for so they can spend less time worrying about the money and more time enjoying their new addition.
One of the biggest unknowns in medical bills. These vary greatly depending on the type of pregnancy and birth as well as if there are complications. It can be broken down into 3 sections.
- Prenatal (before birth)
This will include all the ultrasounds, doctors visits, and miscellaneous things such as new clothes and supplies for the mom.
- Birth
A huge difference in cost will depend on whether the birth is vaginal or a C-section. The average vaginal birth averages between $5,000-$11,000 while the average C-section is between $7,500-$14,500. The price will vary as well if there are any complications.
- Postnatal (after birth)
This will include any follow-up appointments, immunizations, and all the baby
clothes and gear that you’ll need. Child care can also be a big expense if the
parents are going to be working. The average cost of childcare can range between $800-$1,300 per month.
Health Insurance
Health insurance can cover many of your medical expenses depending on your plan. You will want to check with your insurance company to see what they cover and what you’ll have to cover. If you are unhappy with your coverage, you may want to explore what other options are available to you.
Consider adding another layer to your emergency fund to cover any unexpected surprises that insurance doesn’t cover that might come up at any point in the process.
Life/Disability Insurance
Because there will be an extra bundle of joy relying on you, it often makes sense to think about extra life and/or disability insurance. That way, you can be certain that your family will be taken care of regardless of what happens. Oftentimes, this can be relatively inexpensive especially for younger parents.
Overall, starting a family can be an incredible thing. There are many joys that only can be experienced as a parent. Preparing now for the financial aspect of parenthood will help you feel ready to welcome your new addition into your life.