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Start with what the local OB's and hospital's charge and figure your portion. Unless you have top notch insurance, you could be paying out of pocket anywhere from $1000 to $10,000 depending on what's covered under most normal circumstances for your pregnancy and delivery bring. Add complications and it can go up tremendously. (friend had a baby with heart issues and her first two bills were 6 figures with many more after that)
Most insurance plans have individual and family annual limits. For instance, my family will never pay more than 1.5k per year regardless of how many expenses we have in that year. So there is no way for my bills to go up tremendously. My deductible is very black and white. I don't even need to check with the OBs and the hospitals on what their bills will be because my obligations are very clear in my insurance. Furthermore, hosptials and doctors allow payments. It's not like she needs the deductible money up front. Only copays are required in advance.
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Originally Posted by redpanda
I'm so very happy that we didn't have a child till we were financially ready--parenthood is quite difficult as it is without making it MORE difficult by struggling financially as well.
The OP and her husband are professionals. She will be working full time by fall 2011. The only financial preparation she needs is to save enough money to cover the baby expenses and her loss of salary while she's not working. That's very doable. It's not like the OP and her husband are light years away from affording a baby. I think it's a shame that people are discouraging her. She is at the point where it's ALMOST time. She has plenty of time to save the money she needs.
Most insurance plans have individual and family annual limits. For instance, my family will never pay more than 1.5k
That's great....but be aware than many policies (especially for smaller companies) have MUCH higher annual limits. My husband's company for instance. The policy they offer has an annual limit of $8K. Now, if you have that baby in December and it needs additional healthcare into Jan. you could find yourselves $16K in the hole in 2 months. Not to mention, their insurance monthly premium might go up also. My company has different payments for 1, 2 or "more than 2" dependents.....
Which was one of the reasons I went back to work - for a larger company with much better insurance coverage.
But the stress of trying to finish school/student teach/establish 2 careers, while being a first time parent added to financial difficulties certainly has both an emotional and psychological impact on the marriage and family. No one is saying wait until you win the lottery.
Did you miss that she will be done with school and student teaching in December of this year?
And her husband already established his career. (They didn't get that mortgage without his having a job!) She's the one who continued on for a masters. Their lives are more in order than when most people have children.
I'm not saying that you're not giving good advice. You are. I just think it's more doom and gloom than this particular OP needs based on her specific situation. Her life is very much in order and her finances will only get better once she starts her career. My goodness, she's going into the perfect mommy career. If she waits ONE more year and has a baby in the Summer 2012, she'll have the entire summer off WITH PAY to spend with her baby. If she times the pregnancy right, she won't even need to save for her maternity leave because of the career she chose.
That's great....but be aware than many policies (especially for smaller companies) have MUCH higher annual limits. My husband's company for instance. The policy they offer has an annual limit of $8K.
My point was that it could be very easy to figure out what the costs will be. With a deductible plan, there's no need to check with the hospital and the OP to estimate costs. A deductible type insurance plan makes it very straight forward. I guess I would have been clearer if I had merely said to check with the insurance company. That's where to check. If her husband has a terrible insurance plan, they can simply postpone until she's working. Teacher Unions usually secure excellent benefit packages.
Quote:
Originally Posted by maciesmom
Now, if you have that baby in December and it needs additional healthcare into Jan. you could find yourselves $16K in the hole in 2 months.
Which was one of the reasons I went back to work - for a larger company with much better insurance coverage.
You bring up a good point. There's something to be said for planning a deliver earlier in the year for people who have terrible insurance plans.
I didn't miss it at all. She has said they are already in financial straits because of her lack of income. If that were not the case I would agree with you. I don't think it's doom and gloom to consider reality. You can't be prepared for every little thing but you can try to cover the bases. Not to mention, you are assuming she'll find a job right away...I don't think anyone can assume that currently.
As I posted before, I believe it's more important to be emotionally and psychologically prepared for a baby than financially. There will always something to hold you up going strictly on finances.
Perhaps. But having a baby because you "wanted" one before you were financially ready for one would show emotional and psychological immaturity as well as a lack of preparation. To quote the old adage, "if you have to ask..."
Waiting to start your family till you're financially ready is just another form of delaying gratification...it's not a bad thing. I'm not sure why so many people are coming down so hard on the other side of the coin. No one's telling this young woman, or anyone else for that matter, to never ever have kids; they're just explaining how they afforded children. In my case, I waited. That's how you afford anything, from a baby to a trip to Africa to a home of your own--you save and wait.
The thing with kids is that you can't UN-have them. Once they're there, they're there. And I would never, ever want to be in a situation where I defined (for example) something crucial like braces as "not a need" and sent my poor child to school to be tormented for having funky crooked teeth. That's why I waited--so my kids won't have to suffer for my inability to delay gratification. Guess what? I'm still just as much of a mama as I would have been back in the day.
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