Having a baby is a joyous occasion for parents, though it does require a great deal of responsibility. Along with providing plenty of love and affection, new parents must also make sure their child’s material needs are met. From covering childcare costs to boosting your savings account, here are a few financial preparedness tips.

How to Get Ready for a New Child

1. Add Your Child to Your Health Insurance Policy

Whether you have health insurance through your employer or another agency, sit down with a representative and discuss adding your child to the policy well before your due date. Even routine healthcare for babies can be expensive, and health insurance helps mitigate these costs.

2. Create a Will or Update Your Existing One

While no parent wants to consider this situation, a will protects your family should the unthinkable happen. Not only does it ensure your assets will be dispersed according to your wishes, but it also allows you to choose a guardian for your child should something happen to you and your spouse.

3. Invest in Life Insurance

Life insurance offers another level of financial protection for your family. Proceeds from policies can be used for college funds, to cover living expenses, or to pay for end-of-life medical care and funeral services.

4. Contribute to Your Savings Account

Not only do you have to plan for your child once they arrive, but you also need to look ahead. Take any money left over after paying bills and place it into a savings account. Even relatively small contributions will add up over time, so get started quickly for the best results.

5. Look for Ways to Reduce Expenses

Adding to savings isn't always easy, so review your income and debt to determine if there are areas where you can cut back on spending. Having more meals at home, using coupons while shopping, or limiting unnecessary purchases will help you find more money to save.

More than just a financial institution, The Missouri Bank in Wentzville, MO, has helped families throughout Warren, St. Charles, and Gasconade counties with financial management for the last eight decades. They offer three different savings account options, each of which has attractive benefits. Learn more about how they can help you save online, or call (636) 327-4900 with any questions you have.