According to the data from the Consumer Expenditures Survey, an average amount of $233,610 will be spent by a middle-income family to raise a child in 2015. Therefore, it is utmost important that you first check and carefully study the details of your current income and expenditures to ensure that there is a surplus at the end of each month and that you can afford the additional expenses brought by the newborn.
Sufficient emergency funds can guarantee that you can cope with unexpected incidents such as unemployment. Save aside certain amount of emergency funds on a quarterly, monthly or even weekly basis. Make sure you can support a family of three for at least two months, ideally six, even if both breadwinners are out of work.
Health and other insurance
Contact your insurer to check the details about your health insurance plan and how much costs are covered for expecting parents. Figure out the out-of-pocket costs that are likely to be incurred and change your planning in accord with your own financial capability. Make phone calls or check at the websites to see if you are qualified for Medicaid or CHIP.
Child Tax credit
Child under the age of 17 is granted a credit up to $2,000, while child ages 17 to 18 can also receive a nonrefundable credit of up to $500 by Internal Revenue Service (IRS). In addition, child may also enjoy tax benefits such as the child and dependent care tax credit, adoption tax credit, or employer-provided adoption assistance and dependent care benefits. Social Security Number of your child will be required for claiming the Child Tax Credit.