Having a baby might be the most exciting experience of your life. Waiting for a baby to arrive is a lot like waiting for Santa Claus when you’re a child – you’re full of anticipation! However, this time can also be a source of stress and confusion about the financial considerations. There are a lot of things to consider: medical costs, day care, clothing, college, insurance, tax changes, and more. If you weren’t nervous before, you might be now. No sweat! You’re going to find out a lot of what you need to know right here.

1. Financial Considerations
For Your Bundle of Joy
Baby Financial Planning

2. Are you ready for a
baby? Let’s find out!

3. How to Save Money on
Medical Costs:
Prenatal and Delivery

4. • Know your insurance coverage inside and out.
• Build up funds in a Health Savings Account.
• Check out local doctors & hospitals in advance.
• Look for ways to save on prenatal vitamins.
• Request an itemized hospital bill & review it.
• Consider alternatives to doctors & hospitals.
• Explore using a doula to help with delivery.

5. Daycare vs Staying at
Home with the Baby

6. Consider your expenses
associated with working:
Work
Expenses
Gas
Work
clothes
Lunches
out
Daycare

7. How Much Will You Actually
Make If You Work?
Taxes
Income
Wages
• Know how much
you’ll pay.
• Compute your
take-home pay.
• Consider how
much you make
per hour.

8. Tips to Save on Baby’s
Clothes and Supplies
Avoid buying new items.
Borrow baby clothes.
Shop consignment and used
clothing/furniture stores.
Breastfeed if you can.
Use cloth diapers.
Make your own baby food.

9. Tax Info and Kids:
What you Should Know
• $3,700 per child at tax time
Dependent Deduction
• $1,000 per child if you’re single and make less than $55,000 a
year. If married, the limit is $110,000 yearly.
Child Tax Credit
• Varies from 20% to 35% of costs for childcare. Maximum: $3,000.
Childcare Tax Credit
• $3,092 maximum, based on the number of kids and your income.
Earned Income Tax Credit

10. Financial Planning
Before Having a Baby

11. Predict
expenses
Examine
your budget
Decrease
unnecessary
expenses
Start saving now
Discuss finances with a
financial advisor
Increase your sideline income how
ever you can.

12. It’s never too early to start!
Saving for College

13. Tuition, room, and
board at a public 4-
year college average
$15,014/year.
At private schools,
the number rises to
$32,790/year.

14. It’s exhilarating how much a small
investment over time can add up.
The key ingredient is TIME!
The Power of Interest,
Compounding,
and Time

15. Over 9 years:
$100 a month saved
with 10.5% interest will
result in an
accumulated savings
of $18,700.
Over 18 years:
The same amount saved
monthly, $100, with the
same interest of 10.5%
results in an accumulated
savings of $67,500.
This is over 3.5x the
amount accumulated at 9
years, yet only twice the
amount was saved.
Two Examples to Ponder

16. Ways to Make
Saving for a Baby
Easier and More
Effective

17. Start a 529 plan.
Such plans are
arranged through
your state to save
money now to be
used for your
child’s college
costs in the future.
Get a 529 Plan
After paying
off a debt,
keep paying
yourself that
same amount
into your
savings.
Pay Yourself
Set up
automatic
deposits for
all your
incoming
funds.
Auto Deposits

18. K-12 Education:
Private vs. Public
The average, independent private
school has a tuition cost of close to
$12,000 a year.
So you’ll need at least $156,000 to
cover 13 years, which doesn't take
into account the inevitable increase
in tuition over time.

19. Schools vary
dramatically in quality.
There are excellent
and poor private
schools.
There are excellent
and poor public
schools.
Do your homework to
determine the relative
quality of your
options.
Relative
Performance
of Schools

20. Affording Private
Education

21. Loans: About 30% of parents use educational loans to pay
for high school. These loans are relatively high interest,
around 10%. Payback periods can be up to 20 years.
Financial aid: Most private schools offer it.
Ensure you inquire about it no later than
February before the fall your child will attend.
Work a second job and put all the money
toward your child’s private school tuition.
Set up a 9 to 12 month payment plan with the
school each year to pay for that school year.

22. Only you can decide if private school
is the best choice for your child.
If you’re unable to send your child to
private school, don't be too upset!
Many of the world's greatest people
went to public schools.

23. Insurance
Considerations

24. • You might want more life insurance
for you and your partner, since each
of you would be raising the child
alone if the other one should die.
Examine your
life and health
insurance
policies.
• Call your Human Resources about
adding a new baby to your health
insurance policy at work.If you work…
• Check your state’s guidelines for
health insurance for children. Most
states have coverage for low-
income women, children, and
families.
If you don’t
work…

25. Summary
Having a baby and raising him to become a
productive member of society is one of the most
rewarding experiences you’ll ever have.
Before you take the leap to become
pregnant, follow these excellent guidelines.
If you do, you’ll establish a safe, secure, and
enriching future for your child. Plus, you’ll ensure
your family lives their best life possible!

26. Our most basic common link is
that we all inhabit this planet.
We all breathe the same air. We
all cherish our children's future.
And we are all mortal.
- John F. Kennedy

27. We hope you enjoyed your Special Report!
Curtis Roese is an experienced professional with extensive experience in
personal finance and small business matters. Curtis writes and
publishes articles, courses, guides and special reports on his personal
finance blog.
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