So we did it, hubby and I finally decided we want a second child within the next two years. This is a huge step for us because we’ve been enjoying life for the last six years with our daughter, Skylar. It’s been a fun ride, but we’re ready to throw in a new
I love to plan and prepare the best I can, so here’s how I’m planning for baby #2.
- Estimate Medical Costs
Giving birth to a child is expensive. Knowing ahead of time what your insurance will cover is important.
You want to ensure you have an idea of the pre-delivery costs, delivery costs and post-delivery costs. With Skylar, I didn’t know what to expect and the costs associated with a hospital stay.
Lucky with Skylar, I worked for a good company that covered 80% of my medical expenses and offered 6 weeks of paid maternity leave that paid about 60% of my salary.
To avoid making that mistake again, I went to my healthcare provider’s website and estimated the cost of a delivery.
Estimated Total Cost – $12,665
Insurance Pay – $10,115
Estimated Out-of-Pocket Cost – $2,550
Honestly, this doesn’t seem terrible because in the past, I had credit cards bills higher than this.
2. Create Sinking Fund
I plan to take off 3 months with our second child. My current employer doesn’t offer a compensated maternity leave, so I’ll save in advance to cover all my bills while on leave. I reviewed my current budget and totaled all my expenses. (Also note that during this time, I will be debt-free excluding my mortgage.)
Budgeted expenses while on maturity leave include:
Mortgage – $600
Utilities – $350
Auto (gas & insurance) – $210
Personal Care – $50
Misc. – $240
Total expenses – $1,450
Above are the expenses that I will have to cover, while food and other items, my husband will cover.
If we multiple that by three, I will need $4,350 in my sinking fund. I prefer to round that up to $4,500 as illustrated below.
$4,500 (To cover monthly expenses)
+ $2,550 (Estimated Out-of-Pocket Delivery Cost)
= $7,050 Total Baby #2 Sinking Fund
3. Discuss our decision with the “village”
Have you ever heard the saying “it takes a village to raise a child”? My family and I believe this 100%. What this expression means is that parents plus the extended family share the responsibilities of raising a child.
In this case, my mom and aunt assist my husband & I with raising our children. We want to make sure they are the first to know about our decision. This is an important step because while we work and reach new levels in our career, our village picks my daughter up from school, watches her when sick and is there whenever we need them. So I want to ensure they’re onboard with our second baby.
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