Thanks so much for all the well wishes regarding our little announcement on Friday! We’re thrilled (albeit a little nervous) to have another baby on the way! Ever since we found out the big news back in August, Johnny and I have had many a riveting financial discussion about what a second little munchkin means for our future. We reviewed this post we wrote about preparing financially before Sally was born, but we still felt like there were some unanswered questions…
- Should we buy a house before the baby’s born?
- How much will our insurance cover for this birth?
- How much will our supplemental insurance pay out?
- Will we need to buy a double stroller?
- What kind of bed should we buy for Sally now that the crib is spoken for?
- Do we need a bigger car?
- Will we need to start contributing to another 529?
Lots o’ questions. And even though we have another five months to get it all figured out, we’ve already started answering a few of them.
Should we buy a house before the baby’s born? At first, I was pumped to have an excuse to finally make the plunge into home ownership. My nesting instincts kicked in realll early and I was imagining decorating a new space to call our own to welcome our second child to. But after talking it through (and letting my hormones chill out), we’ve realized it makes sense to stay in our condo for now. We have an office that could easily serve as a third bedroom. And we live within walking distance to Johnny’s work, a convenience we’re not quite ready to give up. I can already imagine myself calling Johnny those first few weeks and screaming for him to get home because the baby had a blowout and Sally found a permanent marker. After reading this, Johnny will probably want us to move further from his work.
How much will our insurance cover for this birth? Unlike last time (when the insurance gods gave us a free baby), Johnny and I will have to pay a few thousand out of pocket this time around. If you remember this post about weighing out our insurance options, you now know why we were so keen on a low deductible instead of an HSA. Knowing that, we’re trying to be especially mindful of our budget so that we’re saving a hefty chunk each month until the baby’s born.
How much will the payout be from our supplemental insurance? Johnny and I still have our Aflac supplemental insurance, which netted us a cool $4100 for Sally’s birth. We’re hoping the payout is similar this time around to help us pay for the birth. And if we’re lucky, maybe we’ll even be able to put any extra toward that monstrosity called a double stroller. Which leads us to…
Will we need to buy a double stroller? We think the answer to this is YES. But we’re still not sure what kind. I think I’d like a side by side one, rather than a front to back one. But there’s still a ton of research to be done in this department. (Any tips would be much appreciated!)
What kind of bed should we buy for Sally now that the crib is spoken for? I’m leaning toward buying a twin bed, but depending on how much space we have in the room currently serving as our office (where Sally will be transferred), we may have to opt for a toddler bed. I like the idea of a twin bed because guests could use it when they come visit, and we’d never have to upgrade Sally’s bed again.
Do we need a bigger car? This is a definitely. There’s just no way our Toyota Corolla will comfortably fit two carseats. Johnny has to push his seat back all the way when he drives (long legs or something), leaving no room for a baby on that side. Johnny and I are butting heads on this issue (surprise, surprise). He wants a minivan, and I’d like some sort of crossover or smallish SUV. Either way, we’ll be selling our Corolla and hoping to pay cash for a new (to us) vehicle.
Will we need to start contributing to another 529? Ugh… I don’t want to think about this one yet. But, yes, we’re hoping to have started contributing to this new little one’s college education by the time he or she turns one. Happy birthday, sweetheart! Here’s a cardboard box, some crayons, and your first 529 contribution!
Those are the financial logistics of baby #2 we’ve considered so far. I’ve still got to come up with a spending budget for baby preparation, which I’ll share in the coming months. Any other considerations you’d add to our list?