As a mother of three, Stephanie Martin learned the importance of getting off to a good start as her family was growing. Now, as a Financial Wellness Coach with Greylock Federal Credit Union, she enjoys sharing what she has learned with other young families.

“Preparing for a new addition to your family is an exciting time,” Martin noted, “but it also comes with financial considerations. It can be helpful to start planning ahead of time, if possible, but most families don’t start until they are expecting.”

Here’s what you should know now to build a financial plan for your future family:

Review Your Health Insurance

As you’re considering your plans for the future, make sure you have health insurance that meets your needs. If health insurance is not offered by your employer, check in with your state for available insurance programs.

Martin encourages expecting parents to review the costs of prenatal care such as copays, exam coverage, testing, and other related medical expenses. Some important questions to ask include: are any or all these covered by insurance? Are there requirements for a specific birthing method and/or restrictions? Does the health insurance plan cover your doctor(s) and other prenatal professionals?

Also, identify any potential out-of-pocket expenses and check with your insurance plan administrator on “how” and “when” to add your new baby to your insurance policy.

Plan for Parental Leave

Research your employer’s family leave policy to ensure it covers your upcoming needs. For instance, will your leave be paid or unpaid? If unpaid, how long can you afford to be out of work? Martin suggests calculating how much income you would typically bring home for the period you expect to be out of work, and work toward building up your savings account to cover your expenses while on leave and not receiving a paycheck. Even if you have access to short-term disability benefits, keep in mind, you may experience a delay in receiving those benefits, so you should still build up your savings as an added resource for your leave.

Create a Baby Budget

Work out a budget (or spending plan). List all potential expenses you can think of, including medical bills, baby gear, clothing, and nursery items. Don’t forget ongoing costs like diapers, formula, and childcare. Having a clear budget helps you manage your finances effectively and allows you to plan for the unforeseen

 “There will be unexpected expenses. It happens to all of us,” she said.

For example, breastfeeding is technically free, but there are still additional costs, like breast pumps, storage bags and bottles, nursing clothes and more.

If you’re concerned about these and other related expenses, financial aid resources may be available for you and your baby. You may be eligible for programs like Women, Infants and Children (WIC). https://www.fns.usda.gov/wic

Build an Emergency Fund

Having an emergency fund is always important, but especially with a baby on the way. Aim to save three to six months’ worth of living expenses to cover unexpected costs or income disruptions.

Consider Life Insurance and Estate Planning

If you don’t already have life insurance, now is a good time to get it. Ensure your family is financially protected in case of unforeseen events. Greylock Insurance Agency (www.greylockinsurance.com) can help.

Once your baby is born, you’ll want to update the beneficiaries on your deposit accounts or IRA accounts. Additionally, consider creating or updating your will to include guardianship and financial provisions for your child.

Review and Adjust Your Budget

With a new baby, your household budget will change. Regularly review and adjust your budget to accommodate new expenses and ensure you stay on track financially.

“By taking these steps, you can ensure that you are more financially prepared for the arrival of your new baby,” Martin said. “Planning ahead will give you peace of mind and allow you to focus on enjoying this special time with your growing family.”

For more personalized wellness coaching advice and information on our family-friendly financial products, please visit Greylock.org or contact one of Greylock’s certified Financial Wellness Coaches at 413.344.1026.

We’re here to support you every step of the way!