Carolyn McClanahan began her career as a doctor. During this time, she delivered over 150 of her babies and guided dozens of women through the pregnancy process.
Today, she is a certified financial planner and founder of the financial planning company Life Planning Partners.
Her combined expertise in money and health provides unique insight into the financial stressors associated with childbirth.
Here are five questions she says everyone should ask themselves before deciding to have children.
1. How much of the shipping fee is covered by insurance?
According to ValuePenguin data, the average cost of a vaginal birth in a hospital without health insurance is $13,024. With health insurance, giving birth in a hospital can cost up to $8,224, depending on the type of insurance you have.
“Make sure you understand your insurance and how much you can expect to pay,” she says. “Please make sure your hospital and OB are in your network.”
2. Can all appointments occur within the same calendar year?
McClanahan says getting pregnant towards the end of the year could save you a lot of money.
“If you get pregnant in October, November, or December, you don't need to see your first doctor until the following year,” she says. “Then, ideally, the baby will be born within that year, meaning the baby-related deduction will only be for her one year.”
However, if you become pregnant in the spring, you will have to meet the deduction for that year and the following year.
3. What is my workplace's parental leave policy?
Find out how much paid time off your company offers and think about how likely you are to return to work after giving birth.
“A lot of people say they're going to go back to work, but it's hard to go back to work after having a baby,” McClanahan said.
If you have a partner, find out what your budget would look like if you didn't go back to work or if you went back part-time rather than full-time.
4. How much does school cost?
If you are not satisfied with the quality of schools in your neighborhood, you should consider private schools or move to another area where public schools meet your standards.
While the decision may seem like a lifetime away, these are huge costs, so McClanahan warns that you should at least have a rough idea of how you'll deal with them before having children. do.
5. How much do you intend to change your lifestyle?
It may sound obvious, but it's worth reflecting on what specific changes you need to make in your daily life. Dining out, traveling, and attending sporting events are completely different when you have kids in tow.
“If you like to travel, you now have to bring an extra person with you, and that costs a lot of money,” McClanahan said.
Take a moment to think about how much money and time you spend pursuing hobbies, and how that might change if new expenses arise.
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