Preparing financially for Charlie's arrival.

Let's face it, money matters at least for most people it does. The economy is tough and it wasn't that long ago that Micha and I were college students surviving on shoe-string budgets. Naturally, when we found out we were expecting, our finances were a concern. Here's what we did (and are doing) to prepare.

One of the very first things I did, before we went to the doctor or told anyone, was look into Short-Term Disability Insurance. Unfortunately, neither the state I live in nor my employer provides STD Insurance however; I could purchase a policy on my own for relatively cheap. Since I was already pregnant though, the policy would only pay out in the even of complications. Since I'm healthy and this is a very low risk pregnancy, I decided against the STD Insurance. I would recommend if you are trying to conceive this year, purchase a policy now before you get pregnant.

Something we do periodically is look at our budget.  I look back at the last month or two and see exactly where our money is going and how close we are to meeting the goals we set for ourselves. When looking at our budget now, I actually look at two: our Before Baby (BB) Budget and our After Baby Budget (AB). The AB budget is broken into 2 different 'sub-budgets': one for the period of time that Micha and I are on leave and the other for when everyone is back at work. The AB budget reflects stuff like an increased grocery budget, what my take home pay will be with the additional insurance and child care. This is also how we decided whether or not I should return to work after the baby. Daycare is expensive so for some families it makes more sense for one parent to stay home.

In looking at the budget, we tried to find ways we could cut expenses now, especially for those weeks that we only have one income. We used our tax refund to pay off credit cards and other small debts. We also started paying a little extra on our car payment every month so that in October we will be a full three months of payments ahead. We also continue to try and find ways to make our home as energy efficient as possible and ended up purchasing a front loading washer and drier. It seems counter intuitive to spend money to save money however; we've nearly cut our water bill in half despite needing to water our vegetable garden on a daily basis (yes, I'm waging a full scale nag-a-thon until I get at least one damn rain barrel). For more easy energy efficiency tips: http://www.cleanairgardening.com/saveenergy.html. 

Another way we save money is at the grocery store. We try to go on a weekly basis and set a weekly budget. A couple months into the pregnancy, we increased the weekly budget to accommodate stocking up on non-perishables, cleaning supplies and toiletries. We take the weekly ads with us (our grocer price matches) and I clip coupons. We are planning to try cloth diapering at least part-time (Micha isn't completely sold on the idea and we know most daycare providers won't go for it) so we have already started stocking up on diapers and wipes.

Our budget also included a certain degree of what I like to call 'fat', the biggest chunk of which being our cable bill. I hate our cable. It's terrible. After looking more closely, it turns out that the we were paying for service that the provider essentially could not provide, at least not with any kind of consistency, even though they were consistently charging us for it month after month. We got rid of the cable portion and reduced the Internet speed (since it wasn't faster, just more expensive). We got a subscription to Netflix and we haven't missed cable even for a minute. I mean really, who wants to watch a bunch of shows about the biggest dumbasses New Jersey could produce?! 

Two words: Garage Sale. After moving into our new home, I found we had a great deal of 'stuff' that we no longer needed/wanted/used. We cleaned out our closets and participated in the city wide garage sale. The larger ticket items that didn't sell we put on Craigslist. We sorted through Mumbles' clothes and will consign the stuff that is still in good shape and donated the rest. We also picked up some great buys. Micha found an infant seat and two bases as well as a jogger stroller for $30! We found a crib and mattress for $50 on Craigslist and picked up a bouncy seat for $16 at one of my favorite consignment shops Children's Orchard. The important thing to remember when buying used baby gear is to check whether or not the item may have been recalled by the Consumer Product Safety Commission. You'll also want to be certain that car seats have never been involved in an accident. It is also important to note that it is illegal to resell any product that has been recalled, so be sure you check before putting your old baby gear up for sale.

There were three phone calls that were super important for us to make, the first was with our respective HR departments and supervisors. In the US, maternity/paternity leave falls under the Family Medical Leave Act, which grants most employees up to 12 weeks of unpaid leave. Some companies, such as the one I work for, are exempt from this because there are fewer than 50 employees. It is important to know what your company's policies are for paid and unpaid leave and other benefits such as insurance premiums while you're on unpaid leave, changes to Health Savings Plans and the availability of short-term disability insurance. Also, life insurance is an important consideration. If your employer does not provide any or enough, buying a term policy is really inexpensive. I recommend a plan that would at least pay out enough to pay off your mortgage and any other large debts (student loans, etc.) plus provide a little extra.

Since both Micha and I have health insurance through our employers, we were able to compare premiums and coverage and decided that the baby should go on my policy once he's born. That doesn't mean we'll stick with it. Once Charlie has made his debut, I plan to get quotes elsewhere. There are a few companies, like Blue Cross that are very competitive even with employee plans.

The next call I made was to my insurance company. The last thing I want to do is walk out of the hospital with a brand new baby and a huge debt. Do a little homework about what types of questions to ask about insurance coverage during pregnancy. Watch out for the small things like labs. My provider has in network and out of network lab providers. If your OB doesn't use an in network lab, it could cost you hundreds. Also, find out what, if any, alternatives to traditional care are covered. Some insurance companies will cover Mid-wife attended births and chiropractic care while others will not.

The last call I made was to the hospital. I spoke with the billing department and asked for a rough estimate on what I'd be billed (my OB's office was very upfront and we were able to make financial arrangements early on). I wanted to try an make a few payments ahead of time but was not able however; she did give me a number and an idea about making financial arrangements after the baby is born.

I think one of the most important parts of planning for Charlie's arrival was just deciding what was really important to us. Buying a new washer and drier: important. Buying all new baby gear vs. second-hand and hand-me-downs: not. Taking a babymoon: time sensitive. Remodeling the master bath: can wait.