Maybe Baby? What to Know About Saving for the First Year
Starting a family is a major decision. Among the many factors you have to weigh when you’re thinking about having a baby are your finances. Are you ready to add a new baby to your family now, or should you spend time saving? Your credit union can help you explore your financial health and make smart decisions about planning for the future. This information will also help you decide if now is the time to plan for a pregnancy.
Check Your Savings Account Balance
Experts recommend that you have at least $20,000 in your savings account before you start a family. Medical care during pregnancy, labor, and delivery can be expensive, and it isn’t always completely covered by insurance. Having this amount of money in your savings account will help you face these expenses as they arise. It will also give you a foundation from which to grow your family’s savings during your baby’s expensive first year of life.
Save 10% of Your Salary
Ideally, you should be able to comfortably save 10% of your salary for baby expenses, in addition to your retirement savings. Ask your credit union to set up an automatic transfer to your savings from your checking account on every payday. Unexpected expenses can occur with babies, and having a nest egg will help you deal with them.
Consider Your Child Care Plans
A significant expense for new parents is child care. Decide now what you will do for child care, so you can save accordingly. Research infant daycares and nannies in your town, and decide if you have family or friends who can provide care on some days. Calculate how much child care will cost, so you’re not surprised when the need arises.
GCS Credit Union provides members with the financial advice they need to reach their goals, from starting a family to buying a house . Find out how to join our credit union or talk to a representative at our credit union in O’Fallon by calling (618) 797-7993.