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Financial experts suggest taking a pre-baby budget assessment to anticipate future expenses that might change after having a baby, including childcare, time off work, and potential lifestyle changes. They recommend having a network of parents for babysitting and researching childcare costs in the area to get a good baseline for savings. The speakers emphasize the importance of being mindful of the baby gear mentality and only obtaining what is necessary, and prioritizing saving for retirement before investing in your child's education fund. Additionally, they discuss the importance of setting up a will and planning for modifications to households within the first year of having a baby to make it safe. Finally, they advise not to burn yourself out in the planning process and to enjoy the time being pregnant and with the baby during the first few months.
In this section, the panelists discuss how to start having a steady foundation when planning to expand one's family. Jennifer Meyer suggests doing an assessment of one's financial standing by looking at the income and the debts, setting aside money for unexpected expenses, and building an emergency or opportunity fund. Meanwhile, Pamela Capalad emphasizes how one can prepare for lifestyle changes that might need additional budgeting like moving to a new school district, buying a car, or wanting a larger space for a baby. Both panelists suggest having a pre-baby budget assessment to make some predictions about future expenses that might change after having a baby.
In this section, financial experts suggest taking a look at your future expenses and trying to anticipate how they might change after having a baby. One of the biggest expenses to consider is childcare, which can often feel like an additional rent or mortgage payment, especially in expensive cities like New York. However, this type of expense is typically temporary and only lasts a few years. Self-employed individuals and those without federally mandated paid family leave may need to plan and budget ahead for time off after having a baby, and some states offer paid family leave insurance programs. For those in the sandwich generation who are caring for their parents, it may be necessary to evaluate what expenses can be cut and consider non-financial ways for the older generation to help, such as with child care.
In this section, the importance of parental leave is emphasized and there is a suggestion for parents to split the parental leave time to maximize their time with the baby. The Paid Family Leave program in New York State is highlighted, with a reminder of the low premium for self-employed people. Insurance is then discussed, with an emphasis on talking to the insurance carrier to understand what is covered and what the expenses will be. It is suggested that parents make multiple phone calls and take down the names of the people they speak with to become their own advocates in managing healthcare expectations.
In this section, the experts discuss how to plan for child care expenses. It is advised to have a sense of your work schedule and child care needs so that you can start shopping around and getting a good estimate of the prices in your area. Additionally, having a network of parents in your neighborhood that you can rely on for babysitting can be very helpful. There is also a suggestion to research child care costs and multiply the amount by a year to get a good baseline for how much you need to save. It is also mentioned that the majority of the baby gear is not used for a long time, so investing in items that convert into toddler beds or sturdy strollers can be more cost-effective than buying lots of baby clothes or seats that the baby will grow out of quickly. Buying secondhand items and asking for money at baby showers are also suggested.
In this section, the speakers discuss the importance of being mindful of the baby gear mentality and only obtaining what is necessary, rather than what is expected. Additionally, the discussion shifts towards planning for the child's future, specifically in regards to college funds and retirement planning. They advise prioritizing saving for your retirement before investing in your child's education fund because there are no loans for retirement, and planning for your retirement is the biggest gift you can give to your child to ensure they are not responsible for your retirement. The conversation closes with the importance of estate planning and setting up a will, no matter how difficult it may be emotionally, but reassures that it's never too late to get everything arranged.
In this section, the panelists discuss the common shame and fear associated with finances, particularly in relation to having children. They emphasize that it is never too late to start budgeting and that even small steps can make a difference. Additionally, the panelist who is an OB-GYN asks for advice on how healthcare professionals can help patients understand insurance and billing for pregnancy and childbirth. The advice includes reminding patients to check their insurance benefits, including high deductible health insurance plans and health savings accounts, and giving them a range of potential costs. They also suggest partnering more with patients on medical billing and coding to avoid surprises. When asked about a certain amount of money parents should aim to save for a baby, they explain that it depends on individual circumstances.
In this section, the speakers emphasize the importance of doing a personal audit of household expenses to prepare for a baby. They suggest assessing what is necessary to move forward each month and stay on track with financial goals, such as retirement and savings. While there are no set percentages for how much to save, they advise focusing on anticipating the biggest expenses like child care, moving costs, and potentially another car payment as well as estimating expenses for diapers, clothes, and formula. For those considering non-traditional methods of becoming a parent such as adoption, surrogacy, or IVF, the speakers suggest researching the top item costs and creatively cutting expenses or finding benefits through employers or medical loans. They urge planning for child care as a significant expense and warn that random expenses for baby items will add up quickly.
In this section, the speakers discuss the surprising cost of modifications that need to be made to households within the first year of having a baby to make it safe. Additionally, they talk about how parents need to budget enough extra money to cover these expenses, as well as the fact that there is no established safety net or paid parental leave in the US. One piece of advice given is to consider your health insurance plan when planning to have a baby, as high deductibles can add up if you have a pregnancy over two deductible years, and switching to a low deductible plan before getting pregnant can keep costs low. Finally, they hope that cities will act as models to make childcare more accessible and less costly.
In this section, the speakers suggest that if someone is planning to expand their family, they should relax and prepare for the unexpected. Enjoying the time spent being pregnant and with the baby during the first three months is essential. Planning to enjoy this time is the best advice. It is okay not to have everything figured out, and everyone will always figure it out. It is essential to keep the momentum going at a consistent pace and choose a pace that won't burn them out. In terms of insurance, it can be beneficial to have each spouse stay on their plans rather than combining them, as it may end up being more expensive to insure both spouses. Making a phone call and deciding which insurance to put the child on within 30 days is essential.
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