Navigating the Financials Challenges Around Starting a Family - Blog | NebraskaLand Bank | Personal & Business Banking
skip to main content

NLB Blog

Navigating the Financials Challenges Around Starting a Family

Life Stages Blog Series Part 4

If you’ve recently gotten married, then you and your spouse are probably all too familiar with the following question: “When are you having your first child?” Depending on your life, this question may or may not be warranted or particularly appreciated coming from a recently married couple. Perhaps you and your spouse just want some time alone to enjoy on your own or you’re looking to give the “family” dog extra attention for the next year or two without any distractions.

Planning to Become a Parent

Whatever your thoughts are around having your first child and subsequently starting a family, friends and family are going to ask you about it after you’ve been married. It’s just a reality of married life, and even a cultural formality in the United States. If providing the gift of life and having your first child is something that you intend on doing, your mind might be flooded with many questions and concerns about being a future parent. From a financial perspective, you’re probably considering these types of questions:

  • On average, how much does it cost to raise a kid?
  • What will my medical costs be after having a baby?
  • What are the logistics of maternity or paternity leave?
  • What will I need to buy prior to delivery, and how do I budget for this?
  • Is it too early to start saving for my child’s education?

These are only a few general questions out of the hundreds or even thousands of possible questions for new or expecting parents. NebraskaLand Bank has helped many newlyweds and young couples navigate the financial challenges often associated with having a child and starting a new family. While having a child of your own is a beautiful thing, this is also an expensive endeavor and it’s important to plan accordingly. Fortunately, our network of friendly Community Banks is here to help!

In the fourth installment of our blog series on navigating the most common financial challenges in life, today we cover some important financial considerations for expecting or prospective parents. Let’s get started.

Before The Baby Comes

Have a Good Understanding of Your Health Insurance

It’s no secret that having a baby is expensive in the United States, with or without health insurance. Having a good health insurance policy will help offset some of the costs associated with prenatal care, delivery, and follow-up visits, but make sure that you thoroughly understand what is and what isn’t covered. We strongly recommend having an open line of communication with your health insurance provider.

Sort Out Maternity or Paternity Leave Logistics

Don’t surprise your employer(s) with the fact that you’re having a baby. The more notice you can give your employer about this new gift of life, the better. Determining whether or not you’re going to be paid during this time period (and if so, how much) helps set the stage for budgeting during and after the pregnancy.

Create a Series of Budgets

Speaking of budgeting, you’ll want to spend a great deal of time making sure that you have enough money set aside to help raise a healthy, happy child. Of course, for many people, that’s easier said than done, and our Community Banking Experts and Loan Officers can help you manage your money in the most effective way possible.

You’ll need to buy some baby items in anticipation of their arrival; many future parents completely overhaul and deck out an entire room in their house as the “baby room.” You may need to acknowledge that your buying priorities have shifted and that you’ll need to limit necessary and optional purchases for you and your partner and instead focus on what the baby needs.

Take Time to Find a Pediatrician That You Like and Trust

Don’t wait until after birth to find a reliable and likeable pediatrician for your newborn. Since their first doctor’s appointment will be within a matter of days post-birth, getting connected with the right pediatrician beforehand will eliminate yet another worry from your mind. Trust us; you’ll have more than enough to think about in anticipation of your child as well as after they’re born.

Start or Build a Rainy Day Fund

Accidents happen, and kids are more accident-prone than you might imagine. Now that you’re about to be a parent, it’s more important than ever to set aside funds in case any family emergencies occur. At the very least, you’ll want to set aside three to six months of living expenses prior to your child’s arrival. If possible, don’t stop there — continuing building your savings well after your child is born, which, as we understand, can be a challenge.

Having Your Baby

Get a Birth Certificate and Social Security Card Set Up

Naturally, the most important thing that you can do in the hospital, at home, or at a birthing center is to ensure that your newborn is healthy. Congratulations on starting a family! While emotional support during this special and intimate time is paramount, it’s important to square away legalities by ordering a birth certificate and Social Security card. If you’re delivering in a hospital, you should receive the necessary paperwork from a hospital staff member.

After You Bring Your Baby Home

After everything is said and done, you and your partner are going to be flat-out exhausted. That’s perfectly natural! Take some well-deserved time to relax and rest alongside your newborn. When you’re able to get back to the logistics of parenthood, make sure that your newborn is on your health insurance policy. You may also want to consider adding them to your life insurance policy, and begin planning for child care even if you still have multiple months of maternity leave remaining.

Adjust Your Beneficiaries and Your Will

Navigating legalese is no fun, but working with your insurance provider to add your child as a beneficiary to your life insurance and 401(k) or IRAs is a good idea. Adjusting your will to incorporate your new child can also be a morbid affair, but it’s good to get this important aspect of estate planning out of the way.

Continue Saving For Your Own Retirement

It’s easy to forget that there are other people in the world besides your own child — like you and your spouse. While your child is your number one priority in life, don’t forget about your own financial future as well. Continue setting aside money for retirement that’s separate from your child’s education savings or general living expenses.

Planning For Success With NebraskaLand Bank

Anticipating and having your first child may complicate your financial situation, but you don’t have to navigate these challenges alone. That’s why our North Platte and Kearney branches are here for you and your spouse to answer questions and help you plan for a better, brighter financial future — and a future with more one family member!

Our community-minded team of Bankers wants nothing more than to help your family grow. From setting up a Kids Club Account in the future to connecting you with the right personal loans to help finance your future, NebraskaLand Bank is here for you. If you have any questions, please do not hesitate to reach out and contact us today.