My sister has gone and gotten herself knocked up — to the delight of two families. Like many couples this was a “happy surprise”. In other words, a complete surprise.
So how do you financially prepare for a stork surprise? Here are some steps my sister and brother-in-law are taking:
Starting a baby fund for “upfront costs”. They are each routing money from their paychecks into a special fund to purchase all the baby stuff new parents need. This fund will also pay for any delivery costs above what health insurance will pay. They will continue this savings account for upcoming kid-specific costs.
Starting a college fund. Since the happy parents met at college they’ve already started an account. The idea is to move this money into a state-sponsored 529 Plan when the baby is born.
Hey – I’m gonna be a first-time aunt! What does this mean for my pocketbook? Here’s one financial commitment I’ve made to a friend’s kids. Now I’ll do the same for my sister’s kid!
Are you a first time parent? What are you financial concerns? Discuss them in these related groups: Saving for a Wedding, Wanting to Adopt, Financially Frugal Families, and Couples and Money.
March 5th, 2008 at 1:46 pm
They are smart to start saving money now! It can get quite expensive to give your kids what they need as well as some of the things you “want” them to have. I just wish we would have done something like this. Otherwise, we might not be in the boat we are today with 5 different credit card paymets… Oh well, you live and learn. I hope the best for them!
March 5th, 2008 at 2:09 pm
We’re getting ready to publicly launch SmartyPig.com, the only online savings initiative that allows family and friends to contribute to your savings goals, gives you additional incentive boosts from top retailers who sell exactly what you are saving for (Babies R Us, for example) AND offers you a very competitive (4.3% APY) interest rate for the dollars you are saving. It would be a great tool for these young parents-to-be.