Looking for some more relief? Don’t worry you can claim your childcare expense on your taxes. The Child and Dependent Care Tax credit help reduce a portion of what is owed on income taxes. The credit is based on the number of children, your income and of course how much you spent on child care. So make sure you are tracking all of your payments so you can get back as much as you can.
Feel more comfortable with your child at home? You might have other family members or maybe even your partner stay home as a full-time sitter. If this is not an option you can pay to have someone stay at home as a nanny. A great site for hiring a caretaker is Care.com where you can check out everyone’s qualifications.
Care.com has a list of caretakers in your area and wages are listed in the individual’s profile. I made the desperate mistake of looking on Craigslist under jobs for babysitters. I had visited the home and immediately didn’t feel comfortable being in a stranger’s home. It’s safe to say, they did not qualify and went to have a family member support me as I returned to work.
Life Insurance for the Family
Life insurance should be another thing to check off your list as a new parent. These policies are usually inexpensive as they can be less than $50 a month. Speak with your employer to see if a Life insurance policy is available according to your benefits. If not there are tons of agencies you can get quotes from to compare costs. And if you thought about it yes both parents need life insurance policies.
Even if your the parent that stays home you should have coverage. You are supporting the other parent by staying at home so your family can have an income. In case something was to happen (god forbid), the other parent couldn’t take time off of work. During this dreadful time funding is best to help the family rebuild. Determining how much of a policy to buy would be based on your financial needs. Think of this policy as a replacement of income and other obligations.
Baby Supplies and counting
Let’s just state the obvious you’re having a baby and you’re going to need stuff. Baby supplies can be expensive so you have to do some serious price comparison shopping. My advice is to make a list first then go out and complete a registry with everything you need. Target baby registry gives you a discount on supplies. Don’t be afraid to tell your friends and family members what you need prior to your baby shower. Most of the items will not be purchased but at least you can cross stuff off your list.
If you’re going to make some purchases yourself make sure that you shop through cashback websites. In this case, at least you get a percentage back, more savings you can sock away. When shopping online always look for coupon codes, you can do this by installing the Honey plugin in Google chrome. Honey automatically compares looks for coupons and applies the codes while you’re on the site shopping.
Here’s a list of some of the basic needs
- Diapers and Wipes
- Bathing Tub
- Breast pump
- Baby bottles
- Formula and Baby food
I hope that you were able to get some valuable insight into exactly how much everything is going to cost. There is a lot of joy in having a baby and my goal is not to let money get in the way of it. You are a new parent and of course, there will be a ton of questions. At least we got the money part out of the way. Life changes and so does our income sometimes, all we can do is make adjustments. It’s safe to say life always full of adjustments but there’s always to be a lesson learned in it.