Expanding your family
Thinking about expanding your family? Some financial prep now can bring you some comfort and peace of mind for when your newest family member arrives.
What to know before you grow
Kids can be expensive – and the expenses can start long before they arrive. Pregnancy, IVF, adoption and surrogacy costs can be overwhelming. Here are some considerations to keep in mind to help you prepare.
- Maternity / paternity leave. If you are currently working and plan to take time off, how much will you need to supplement any potential unpaid income? If you decide to return to work will it be full or part-time?
- Childcare. Will you be looking at in-home or center-based childcare? The average cost of center-based childcare in the NY/CT/MA/RI region currently averages around $1,364 a month.
- Day-to-day costs. How will you plan for the basics a child/ren require such as food, diapers, clothing and medical care? Make a list, err on the side or caution and don’t be afraid to over-estimate.
- Room to grow. Will you need more space as your family grows? Will you renovate or upgrade your home?
Resources for family planning
- Savings: Along with a personal savings account that you can set up in your child’s name and keep jointly until they are of age, there are a couple of other accounts to consider opening:
- Home equity loans: Expanding your family can mean upgrading your space. Home equity loans and lines of credit can fund a renovation project, giving you the lump sum needed upfront for necessary home additions.
- Prepare for the unexpected: Life insurance helps to ensure your family is cared for in your absence.