Path to Parenthood

Becoming a parent is a huge responsibility. It takes “adulting” to a whole new level. Prospective parents must not only consider whether they are emotionally ready for the challenge, but also whether they are financially prepared. Every path to parenthood is different, yet you’ll be hard pressed to find any parent who says their journey was easy… or cheap. And while children have a way of derailing even the most carefully crafted plans, it’s still important to HAVE a plan. Review the information below to get started.

Parental Leave
Does your employer offer parental leave, and will you or your spouse take it? There’s no universal paid leave in the United States, but some employers offer maternity leave, and some of that leave could be paid time off. The Family and Medical Leave Act (FMLA) allows eligible employees to take up to 12 weeks of unpaid leave after the birth of a baby. You should check with your human resources department to see what is offered through your employer. And don’t forget to ask if paternity leave is available.

Birth Plan
It is important to consider where the baby will be born, will the baby be born at a medical center or at home? You’ll want to check your health insurance plan to see what methods are covered. Also check which professionals are in network. You should meet with birthing professionals and institutions ahead of time to ask about billing procedures and make as many arrangements as possible before the baby arrives.

Baby Supplies
Perhaps you have access to some second-hand supplies from family members and friends, but other supplies will be new to you. For safety reasons, it’s suggested that car seats be new and meet the latest requirements. Consumer Reports strongly advises AGAINST buying or borrowing used car seats. But many other products, such as baby clothes, toys, and diaper bags, can be obtained at a big discount. Don’t forget to factor in the budget for disposable and consumable supplies, such as diapers and formula, which will make up a large portion of your budget.

Continuing Medical Expenses
While it’s often impossible to know if your child will be born with physical or neurological conditions that require special treatment, it is something you should consider in advance. Examine your health insurance plan to know what your out-of-pocket expenses will be for any special needs care. This might also be a good time to max out your Health Savings Account (HSA) to ensure you are setting aside as much tax-free money as possible to cover medical expenses.
 

Alternative Paths to Parenthood

Adoption and in vitro fertilization (IVF) have their own financial challenges.  An archived issue of the Indiana MoneyWise magazine tackles the subjects of having children through IVF and adoption. We interviewed two families about their paths to parenthood and the costs involved.  Bobbie adopted her two daughters, Lonna and Aleah, via foster care.  Stephanie and Annie chose the route of in vitro fertilization and gave birth to twin sons, Thomas and Aidan.

Cost of Baby’s First Year

TeachBanzai.com created a great online calculator to help you figure out the cost of your baby’s first year of life. The calculator helps you explore expenses, determine what’s essential, and discover the monthly and annual budget impact.

Helpful Resources

CollegeChoice 529
Indiana State Employee Parent Leave Policy
Raising MoneyWise Kids
Travel Sports