Extra Costs for Baby
Ready, get set, go.
Statistics vary from source to source but experts estimate the cost of raising a child ranges anywhere from $500,000 up to $2 million over 18 years. Many expectant parents haven’t given that much thought so if that figure gave you pause, you’re in good company. We’d like to give you the resources you need to ease the potential financial stress of pending parenthood.
Plan for the big day
Are you financially prepared for baby? Don’t wait until you’re on the way to the hospital to have a “money talk” with your partner. You’ll want to have a financial budget that accounts for new child-related expenses such as baby food, diapers, medical insurance premiums, and child care. For personal help to establish a budget, Mill City CU has partnered with BALANCE, a free and confidential financial counseling service. BALANCE counselors are available to help review your credit history and get you started with your new budget.
If infertility treatment or adoption is part of your plan to have a baby, you are sure to encounter additional expenses. Private adoptions can easily cost $10,000 to $20,000 with lawyers’ fees. If you are ready to move forward with infertility treatment or adoption but you haven’t saved enough yet, consider the Mill City CU Life Happens Loan. Life Happens Loans are special because they offer significantly lower interest rates than credit cards or personal loans.
Child Care Expenses
If you will have child care expenses, consider establishing a flexible spending account (FSA) if one is offered by your employer. Parents can pay up to $5,000 in child-care expenses with money that is exempt from federal income, Social Security, and Medicare taxes.