Financial Considerations

For Your Bundle of Joy

Baby Financial Planning

Are you ready for a baby? Let’s find out!

How to Save Money on Medical Costs:

Prenatal and Delivery

• Know your insurance coverage inside and out.

• Build up funds in a Health Savings Account.

• Check out local doctors & hospitals in advance.

• Look for ways to save on prenatal vitamins.

• Request an itemized hospital bill & review it.

• Consider alternatives to doctors & hospitals.

• Explore using a doula to help with delivery.

Daycare vs Staying at Home

with the Baby

Consider your expenses associated with working:

Work Expens

es

Gas

Work clothes

Lunches out

Daycare

How Much Will You Actually Make If You Work?

TaxesIncom

eWages

• Know how much you’ll pay.

• Compute your take-home pay.

• Consider how much you make per hour.

Tips to Save on Baby’s Clothes and

SuppliesAvoid buying new items.Borrow baby clothes.Shop consignment and

used clothing/furniture stores.

Breastfeed if you can.Use cloth diapers.Make your own baby food.

Tax Info and Kids: What you Should

Know• $3,700 per child at tax time

Dependent Deduction

• $1,000 per child if you’re single and make less than $55,000 a year. If married, the limit is $110,000 yearly.

Child Tax Credit

• Varies from 20% to 35% of costs for childcare. Maximum: $3,000.

Childcare Tax Credit

• $3,092 maximum, based on the number of kids and your income.

Earned Income Tax Credit

Financial Planning Before Having a

Baby

Predict expenses

Examine your

budgetDecrease unnecessary

expenses

Start saving now

Discuss finances with a financial advisor

Increase your sideline income how ever you can.

It’s never too early to start!

Saving for College

Tuition, room, and board at a public 4-

year college average

$15,014/year.

At private schools,

the number rises to

$32,790/year.

It’s exhilarating how much a small investment over time can add up. The key ingredient is TIME!

The Power of Interest,

Compounding, and Time

Over 9 years:

$100 a month saved with 10.5% interest will result in an accumulated savings of $18,700.

Over 18 years:

The same amount saved monthly, $100, with the same interest of 10.5% results in an accumulated savings of $67,500.

This is over 3.5x the amount accumulated at 9 years, yet only twice the amount was saved.

Two Examples to Ponder

Ways to Make Saving for a

Baby Easier and More Effective

Start a 529 plan. Such plans are arranged through your state to save money now to be used for your child’s college costs in the future.

Get a 529 Plan

After paying off a debt, keep paying yourself that same amount into your savings.

Pay Yourself

Set up automatic deposits for all your incoming funds.

Auto Deposits

K-12 Education: Private vs. Public

The average, independent private school has a tuition cost of close to $12,000 a year.

So you’ll need at least $156,000 to cover 13 years, which doesn't take into account the inevitable increase in tuition over time.

Schools vary dramatically in

quality.

There are excellent and poor private

schools.

There are excellent and poor public

schools.

Do your homework to determine the relative quality of

your options.

Relative Performanc

e of Schools

Affording Private Education

Loans: About 30% of parents use educational loans to pay for high school. These loans are relatively high interest, around 10%. Payback periods can be up to 20 years.

Financial aid: Most private schools offer it. Ensure you inquire about it no later than February before the fall your child will attend.

Work a second job and put all the money toward your child’s private school tuition.

Set up a 9 to 12 month payment plan with the school each year to pay for that school year.

Only you can decide if private school is the best choice for your child.

If you’re unable to send your child to private school, don't be too upset! Many of the world's greatest people went to public schools.

Insurance Considerations

• You might want more life insurance for you and your partner, since each of you would be raising the child alone if the other one should die.

Examine your life and

health insurance policies.

• Call your Human Resources about adding a new baby to your health insurance policy at work.

If you work…

• Check your state’s guidelines for health insurance for children. Most states have coverage for low-income women, children, and families.

If you don’t work…

Summary

Having a baby and raising him to become a productive member of society is one of the most rewarding experiences you’ll ever have.

Before you take the leap to become pregnant, follow these excellent guidelines.

If you do, you’ll establish a safe, secure, and enriching future for your child. Plus, you’ll ensure your family lives their best life possible!

Our most basic common link is that we all inhabit this planet. We all breathe the same air. We all cherish our children's future. And we are all mortal. - John F. Kennedy

We hope you enjoyed your Special Report!

Curtis Roese is an experienced professional with extensive experience in personal finance and small business matters. Curtis writes and publishes articles, courses, guides and special reports on his personal finance blog.

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