So, you’re pregnant. Congratulations! Now, let me guess. You headed to the bookstore and grabbed a tower of manuals on everything from baby names to sleep advice. Often missing from the pile of how-tos, however, is the manual most of us really need: How baby will affect our finances.
Trust me, you’ll get plenty of unsolicited advice about raising kids. But on the money front, friends are usually mum. If you get any advice, it’s typically “it will all work out” — diapers will replace dinner out and the budget will magically balance. Here are two books that help fill in the financial gaps.
Expecting Money: The Essential Financial Plan for New and Growing Families was written by Erica Sandberg, a mom and credit counselor for Consumer Credit Counseling Service of San Francisco. “I was caught off guard by how little I — someone who has been in the personal finance field for over a decade — knew about the monetary aspects of pregnancy and new parenthood,” she wrote in her intro. I had similar feelings with my kids.
In addition to budgeting, securing employee benefits, and deciding whether to switch from two incomes to one, Sandberg devotes chapters to the meaning of money, as well as couples and money. It’s up to us, after all, to pass on good financial values to our kids. Plus, they will copy what they see, so it’s best to deal with major financial battles today.
Given Sandberg’s background, it’s no surprise that her debt chapter is strong. But she omits retirement savings from the book — which mystifies me. Juggling saving for your golden years and spending on your golden child is a common challenge.
The Busy Family’s Guide to Money is a partnership between USA Today financial writers Sandra Block, Kathy Chu, and John Waggoner and legal publisher NOLO. Instead of talking to busy parents as if they are financial imbeciles, this book acknowledges that there are plenty of resources out there; the challenge is finding time to cull through it.
You can tell the USA Today trio spends their days writing about financial news. Where Sandberg glosses over timely topics, the USA Today writers make a point to tackle them. For instance, there’s a section on how to shoulder student loans, acknowledging that these days, plenty of parents are saving for college and paying off their own education at the same time. The book also takes a detailed look at kids and taxes (gotta love that dependent care credit), investing, and insurance of all flavors.
The book’s time horizon also extends well beyond the first few years, with sections on allowances and teen summer jobs.
Nolo has two other books for the planning parent. Parent Savvy, by attorney Nihara Choudhri, is heavy on the medical and insurance elements of childbirth, covering topics like midwives and employment law. The Busy Family’s Guide to Estate Planning, by attorney Liza Weiman Hanks, provides the straight story on wills and trusts.
To take financial baby steps head online. Check out the “Here Comes Baby” section at the Visa-sponsored PracticalMoneySkills.com to calculate a baby budget, consider going from two incomes to one, and bone up on tax matters. If you’re thinking of becoming pregnant, find out if you’re financially ready at The March of Dimes.
Kara McGuire is a mom and personal finance columnist for the Minneapolis Star Tribune.
Books
Expecting Money: The Essential Financial Plan for New and Growing Families By Erica Sandberg, KaplanPublishing
The Busy Family’s Guide to Money By Sandra Block, Kathy Chu, and John Waggoner, NOLO
Parent Savvy By Nihara Choudhri and Amy Delpo, NOLO
The Busy Family’s Guide to Estate Planning By Liza Weiman Hanks, NOLO
Online
PracticalMoneySkills.com
Check out “Here comes the baby”
MarchOfDimes.com
Click on “Pregnancy and Newborn”
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