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February 15, 2023

What to Expect Financially When You’re Expecting

Use these steps to prepare for your new family member’s arrival.

Are you currently expecting or planning to grow your family in the near future? It is never too early or late to create a financial plan to care for you and your family. Use these tips to be ready for your exciting new chapter in life.

Understand your health insurance.

Major medical expenses (even before birth) can be expected with a new child. You will need to update your health insurance policy, so take the time to review your current policy by contacting your insurance provider. Ask questions like: what are my copays for prenatal visits, what is my deductible, and how do I add my baby to my health insurance plan. You can also use this time to compare policies and find a better plan to fit your growing family’s needs.

Create a new savings account.

Be prepared for both the large and small expenses of raising a child, like baby formula, car seats, new housing if you need more space, and child care. It’s important to set aside around one to two months of your paycheck in savings to prepare for these new costs. Citizens First Bank can help you set aside funds in a savings account or Kids Club account. Call or visit a branch today to learn more.

Adjust your budget.

Recognizing the importance of budgeting early on will benefit your family in the long run. Begin by calculating your salary after taxes and withholding. Next, you can create a list of monthly expenses that includes your new and expected expenses. With these new costs in mind, you can have a better idea of how much income you have to go around.

Start saving for college.

Although your child’s first year of college is years away, it’s essential to start saving now. Depositing money into a savings account early in your child’s life will ensure more money in the future thanks to compound interest. Setting aside small amounts of your paycheck each month that fits in with your budget will greatly benefit your child’s education in the future.

Managing finances while parenting a child can be challenging. However, Citizens First Bank can help you manage your money and set future financial goals for your family. Feel free to stop in, give us a call or visit our website today.