How to Prepare for Your Newest Tiny Dancer
Texas CPAs Give Tips for Those 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.
According to a report by the Agriculture Department, a middle-income family can expect to spend $291,570 including inflation to raise a child born in 2008 to adulthood. The estimate covers food, shelter and other necessities for a child to age 18. The figure does not include the cost of childbirth or college.
The best place to start affording this bundle of joy is with a family budget. Setting financial parameters 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) Chairman, Kym Anderson, says it’s also important to review your insurance needs.
“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 Anderson.
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 have arrangements in place if an unexpected tragedy strikes. And don’t forget about taxes. You may be entitled to some tax breaks once the little one arrives.