Smart Money Tips for First-time Parents

Ah, a bundle of joy—but, also many more expenses. How do new parents do it? Pennypinchinghints.com has some ideas for you to save and make ends meet.

You should begin to save by knowing the facts about your paternity leave. If you work for a company with 50+ employees, you are entitled to 12 months off, but that’s without pay, so you have to budget. There is also short-term disability insurance available that will cover some portion of your salary for 6 weeks.

You should be in the know about the costs involved for having a baby so you can budget. If you do not have insurance, you should know now that a delivery will cost between $9,000 and $17,000. In fact, some providers will not accept you without insurance at all, as it is a big risk to them. Even if you have insurance, policies will not always cover everything. You may have to use certain hospitals and doctors, and prenatal care including tests and prescriptions are not all covered. You must call your insurer ahead of time, too, to make sure what is and isn’t covered so you can plan ahead. Will your insurance cover anything abnormal in delivery, circumcision, midwife care? Don’t forget also to figure your co-payment costs. Insurance just doesn’t cover 100% very often.

Birth means more than hospital costs. There will be child care costs: costs for diapers, the need for baby furniture, a stroller, and a car seat. Start saving as soon as you learn you are pregnant. Consider saving even $20 a week for 9 months. $720 collars can buy a lot of diapers.

Shop now for life insurance policies. You are young and can best afford a policy now, and you have a dependent to provide for. What if something were to happen to you? The average rule is to purchase a policy that will cover 10 times your present salary for 18-25 years. A good place to start is eHealthInsurance, the ONLY site that allows a consumer to view quotes, compare plans side-by-side and apply for health insurance – all online – greatly reducing the time to wait for a response from a carrier. Another good choice is InsureMe where you can also get free rate quotes in minutes from the nation’s top carriers and local agents.

Speaking of dependents, check on your withholding taxes. Because you will have a dependent, you will get a new tax deduction. Why withhold more than you might owe in taxes when you could be using the extra money from your paycheck each month?

Buy smart.

Think about the short-term use of both baby clothes and maternity clothes. Don’t buy new; borrow from other mothers. Check out yard sales and thrift shops—how used could these clothes be? And, your husband’s clothing might just provide the right at-home outfits for mom.

Don’t go out and buy baby books. Yes, you should be informed, but you can go to your library or a local birthing center.

Check out the paper for used baby furniture.

Buy in volume and on sales, even before birth. You will need all those diapers, no matter what. Don’t forget store brand diapers will usually substitute for brand name diapers, and they’re cheaper.

Realize that nursing for a year will save you about $100 a month. Also, if you make your own baby food, it’s cheaper than store-bought.

And, don’t forget to check online for baby deals. There are lots of coupons, samples, and even free baby supplies out there. For example, you can find baby savings at CoolSavings.com with baby couponss, discount codes and money saving tips!