How to Prepare for Your Newest Tiny Dancer

Texas CPAs Give Tips for Ladies (and Lads) Dancing into Parenthood

Bringing a baby into the family is definitely cause for celebration, but dancing around the financial planning that is necessary is a big mistake.  It may be time to put away the blue suede shoes for a pair of comfortable slippers and consider a few things as you prepare for life with your baby. 

The best place to start is your budget. Setting a budget will help you stay on track and in the clear.  Buying all of the baby accessories is pretty much a one-shot deal, but you’ll need to also factor in monthly expenses such as health insurance, baby formula and diapers.  Redo your budget to know just how much your monthly expenses will increase once the baby is here.

Texas Society of Certified Public Accountants (TSCPA) immediate-past Chairman James A. Smith says it’s important to review your insurance needs.  It’s also smart to check the maternity coverage that your health insurance offers. 

“It’s critical to have good medical coverage for your baby.  Trips to the pediatrician, prescriptions, and other health-care costs can really add up over time. Fortunately, adding your baby to your employer-sponsored health plan or your own private plan is usually not a problem,” said Smith.

Texas CPAs say that this is also the time to update your wills (or prepare them) with the help of an attorney because you’ll need to address what will happen if an unexpected tragedy strikes.  And don’t forget about taxes. You may be entitled to some tax breaks once the little one takes center stage.