As you prepare to welcome your bundle of joy you have a nursery to decorate, baby gear to get, and likely a million other to-dos running through your head.
We know that preparing your finances for your new family is probably somewhere on your list and that thinking about it could make you feel overwhelmed.
But, don’t worry. We’ve got some good news. Emily and Elizabeth, co-founders of Pineapple Finance, have gone through hundreds of finance lists, blogs, and articles, for you to build the “Ultimate guide for baby-proofing your finances” checklist.
Below, Emily and Elizabeth are giving you the top three things that should be on your Basic Baby Proof your Finances program. For The Works, check out Pineapple Finance
Figure out what benefits you get from work
Some employers offer their employees additional benefits when they become new parents, and you want to get clear on the costs of maintaining your health care plan while your on mat leave. Contact HR to ask about:
If they offer a ‘top up’ to your salary in addition to Maternity EI benefits
If you can use vacation and sick days to extend your parental leave
How Health and Dental benefits work while you are on leave – and costs to add a child to your plan
How pension or retirement savings contributions work while you are on leave
Make your Pre-Baby and Post-Delivery budget
Creating a pre-baby budget will help you understand how to save for one-time like baby equipment and maternity clothes (hello, leggings!).
The post-baby budget will help you understand ongoing costs for baby, such as diapers, formula, and clothing. If you are taking time off, it will also help you understand how much you need to save to compensate for your decreased income while out of the office.
Finally, quickly running the numbers can also give you a sense for how your finances may change once you are back to work, and using childcare.
Update your Holy $hit Plan
Who would look after your little one if something happened to you? What funds would be available to take care of them?
Your Will gives the court specific instructions on how to handle guardianship and how to divide your assets. Life insurance provides funds to help take care of your family. Both are ridiculously important.
Before you say, ‘We’ll do it once baby is here’, most parents who have a will and life insurance got them before baby arrived.
If you’re interested in reading the full 8 steps check out “ultimate baby-proof your finances”