We’re about to test that theory out. We are due any day now. Our finances will have to change as well.
So how did I prepare for this second child financially speaking? To be honest, I didn’t do much. Here are a few of my moves:
1. Bumped up the health savings account. We’ll be paying a bit more out of pocket this time around, so I wanted to make sure we could use tax-free dollars to make those payments. We got rough estimates from our doctor and hospital so we knew what we would need.
2. Opened a second 529 plan. I actually opened up this college savings plan back when our first child was born. It’s been in my wife’s name since that time. We will just switch it to our new child when we get a social security number.
3. Invested in a double stroller. Definitely a want vs a need. We sold our old stroller on craigslist and used the proceeds to help buy a new double stroller. This has been and should be the only significant equipment/furniture upgrade we’ll be making.
4. Will be adding on a new dependent. Finally, once our little one is here with us, we’ll add a new dependent to our health insurance and term life insurance. Also, once I take on the task of completing a will, both our children will be added in.
Since our second child is also a girl, we won’t need to buy that many clothes. Also, our friends and family threw a very generous diapers and wipes shower that helped out a great deal.
Did I miss anything? What else should I be considering financially when it comes to a second child?