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Financial Planning before conception

25 Aug 2015

Having a baby entails a lot of expenses that best handled when planned for. This helps to ensure that you don’t worry about expenses and enjoy the new experience. Let’s discuss what factors you should keep in mind while expecting a baby. To plan your expenses you need to 1st know what expenses you are going to have to pay for.


1.  Expenses during pregnancy: this includes doctors cost per visit, cost of sonography, medical test, special medications or treatment if required.

One should also think about things you need for the baby when it would be born like, a cot, cupboard, pram etc.


2. Expense for the big day: yes I am talking about the expenses for the delivery. One needs to keep in mind that the mother could either have a normal or C-section delivery. Cost of the hospitalisation etc. It’s best to visit few hospital and prepare a quotation for each and compare.


3. Having a baby and the first year: One a child is born it needs regular immunization and doctor’s visits. Few small expenses are also there which exists are going to stay with you for a long time like diapers, top feed formula, clothes (since kids outgrow clothes very fast).


4. Child’s schooling and extra development activities are heavy on pocket.


Now we have spoken about likely expenses that parents or future parents will have. We don’t intend to leave you with anxiety and stress. So please stay with us and take our tips home:

1.  Insurance: Most of the cost are dependent on one factor where you live and how much of this is covered by your health insurance. In India a lot of MNC’s do give their employees special insurance that helps them or their partner with hospitalization expense of delivery.


2.  Some insurance policies too are designed for this so asking friends and colleagues or surfing on net could probably be a good start. 


3. One could think of options like “Recurring deposit plan”.


4.  Accounting for increased expenditure: in most scenario we have increased expense with changed lifestyle and reduced savings. So planning your expense and holidays in advance would help.


5.  Starting school and sometimes even playschool is an expense that goes over a lakh these days! So, this is one medium term expense (3 – 5 years based on when you start to plan) and needs attention well in advance. Use progressive saving tips with a good portfolio management









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