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6 smart moves to prepare for parenthood

December 14, 2010 by  
Filed under Articles and Features Here’s what family and doctors never tell prospective parents: Kids are expensive.

According to the U.S. Department of Agriculture, it will cost the average American middle class family more than $220,000 to raise a child to age 18.

Then there’s college. And you know what those bills are like.

Being a good parent not only takes a lot of love and patience, it requires a lot of savvy financial planning.

Everything from the balance on your credit cards to the insurance coverage you select will go a long way toward determining the kind of life they’ll lead not only as kids, but as young adults.

Our 6 smart moves to financially prepare for parenthood can help you make many of the right decisions.

Smart move 1. Start saving for the delivery.

Get off on the right foot by having the cost of having your baby covered before you ever reach the hospital.

Depending on your insurance, deductibles for labor and delivery typically run $1,000 to $3,000.

But out-of-pocket costs can quickly rise to $15,000 or more if you encounter complications that require a C-section or a premature birth that lands your infant in neonatal intensive care.

If your doctor says you have a high-risk pregnancy, set more money aside for the bills, because there’s a much greater chance of having a high-cost delivery.


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