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PRESS RELEASE
Thursday, August 27, 2009
Are You Financially Prepared to Have a Baby?
Things to consider when planning for a family
Dallas - Aug. 27, 2009 - Most couples know when they're emotionally ready to have a baby. They talk about names, begin thinking other kids are cute and start paying attention to schools in their neighborhood. However, knowing the cost of having and supporting a child can be an out right emotional overload.
"It's becoming more and more expensive to have kids," said Todd Mark, vice president of education for Consumer Credit Counseling Service of Greater Dallas (CCCS of Greater Dallas). "Everything from medical care to diapers is more expensive, and the cost of college 18 years from now is unimaginable."
CCCS of Greater Dallas recommends couples consider the following items when preparing for parenthood.
Find out what your health insurance covers. Call your insurance company and tell them where you plan to have the baby. Know how many days you can stay in the hospital. Check the anesthesiology group and make sure every doctor is on your plan. Know what the hospital fees are in addition to your doctor's fees. Several different providers will be involved in your child's birth. Consider all possibilities and what is covered by insurance.
Secure a daycare or childcare provider six months before having the baby. If you know you're returning to work, research daycares and nannies as soon as you find out you're having a baby. Many daycares have waiting lists for several months to a year. It's important to do your research ahead of time so you're not forced to pay for the only option that's available.
Choose a pediatrician. Hospitals will have a pediatrician on staff to treat your baby. If your personal pediatrician does not practice at the hospital where you're giving birth, find out who the on-staff pediatrician is and confirm that this individual is covered by your insurance. It's also smart to ask what typical fees are involved.
Establish life insurance. Most people don't need life insurance until they have dependents, so as soon as you start considering parenthood it's time to begin researching life insurance. Term life is generally less expensive, and can cover a 20- to 30-year period. It is basically protection for your dependents in the event of unexpected death. This is a great option if you buy a policy that is long enough to cover your youngest child until he/she is independent. Whole life products can be very expensive. You'll pay the premium for the rest of your life, unless you decide to cash in and receive the cash value as a lump sum, which can take years to establish.
Take advantage of baby showers. Instead of registering for all the cutsie toys and shoes, register for the essentials. At a minimum, you'll need a crib, changing table, and for most, a rocker. You'll also need a stroller and car seat, and diapers will be required for at least the first couple of years. Parents spend hundreds on diapers and formula each month. Think wisely when building your baby registry and you can avoid some of these costs once the baby arrives.
Consider your living situation. Make sure that not only your neighborhood is safe, but that your home is baby-proofed. Simple steps can be taken to protect young children. Some parents-to-be think they need to upsize their home to welcome a new baby, but retailers are now offering space-saving and cost-effective baby furniture for every size of home. If you are considering moving, now is the time to think about the quality of public school districts.
Sign up on all baby Web sites. As soon as you know your baby's due date, you can sign up on formula, diaper and other baby related Web sites. These merchants will send free samples and valuable coupons throughout your baby's first couple of years.
Ask others for cost-saving tips. Ask other new parents where they've found the best deals on diapers and formula as well as which generic brands are equivalent to name-brand products. While your mom may offer her advice, she may not be up-to-date on the best deals on today's baby products. Sites like www.babycenter.com have message boards where parents share cost saving tips, in addition to helpful parenting tips.
Shop resale shops. Baby and children consignment shops have become very popular in most cities. These shops are great for clothes, furniture and baby gear. If you don't get what you need at your baby shower, you can usually save at least 50 percent on most items at resale stores.
Start a college savings account. While not all of us can pay for the entire college career for all of our children, it is smart to start saving now to provide any assistance you can. Check out www.savingforcollege.com and www.collegsavings.org to research options available in your area.
"Today's families spend thousands on babies in the first year thinking they need everything on the market, Mark said. "While buying a few luxuries is fun and makes you feel like a great parent, it's wise to budget for the essentials items to support your child so you can save for other things like college and life insurance."
In addition to these helpful tips, CCCS of Greater Dallas offers education on the cost of raising a child, which includes everything from basic expenses such as food, to saving for college. For more information on free workshops or free budget and credit counseling, visit www.cccs.net or call 1-800-249-2227.
About CCCS of Greater Dallas
Consumer Credit Counseling Service of Greater Dallas, Inc. is a nonprofit, community based credit counseling and debt management service. Established in 1974, CCCS Dallas and its affiliate offices provide financial education and counseling to consumers in-person, by phone, or Internet through their 24 locations in four states. CCCS Dallas is a HUD accredited counseling agency and serves as one of eight counseling agencies supporting the 888-995-HOPE Hotline. The agency is also a member of the National Foundation for Credit Counseling (NFCC), the nation's largest and longest serving national non-profit credit counseling network. To learn more about CCCS Dallas' free seminars or the agency's services, visit www.cccs.net.
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