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b'As part of my live well series, I wanted to address the financial implications of having children, or more specifically, having your first child.\\xa0 While becoming a parent is very exciting and fulfilling, it\\u2019s also significantly life changing in many ways\\u2026 but here let me focus on the financial aspects of becoming a parent.
Plan for Income Reduction
Well, if you\\u2019re a two-income couple, one of the first changes you might face is a straight reduction in your wife\\u2019s income should she go on short-term or extended maternity leave.\\xa0 This, of course, also depends on her employment status and the pregnancy-related benefits she receives\\u2026 but for the most part, young expecting couples are faced with a sudden loss of income of the mother.\\xa0 So make sure, as soon as you find out you\\u2019re going to become parents, you use the remaining seven or eight months before the baby\\u2019s birth to set your finances in order and rejig your lifestyle to accommodate a new person in your household and a drop in takehome pay.\\xa0 In instances where the mother is not working, adjust your lifestyle for the added expenses of a new born.



And, ideally, plan ahead as soon as you are married or in a relationship where the two of you would want children.

Also speak with your employer to see if you\\u2019re covered by short-term disability insurance that could pay up to 70% of your gross income for about six weeks typically; also check with HR on your maternity benefits and make full use of them on things like your insurance co-pays\\u2026 treat a pregnancy like any other medical condition and plan ahead for necessary out-of-pocket expenses.
Plan for Baby Expenses
In addition to loss of income, a baby comes with multiple expenses such as an added healthcare deduction from your salary, out-of-pocket hospital expenses for the mother and child, temporary periods of absence for the father that could also result in reduced pay close to the time of delivery and, of course, money for the baby\\u2019s clothes, toys, crib, formula, diapers, car seat and more.\\xa0 You\\u2019re sort of hit by a mini tsunami of expenses when a baby is born so it\\u2019s best that you be prepared.

Now, a lot of excited parents tend to get carried away and buy expensive cribs, expensive clothes and so on\\u2026 driven by a noble thought where they want to give their child the best that they can afford\\u2026 but, frankly, the child knows no better \\u2013 a $1 toy from the Dollar Store is often as exciting and challenging as a $50 gift from your favorite baby store\\u2026 and a fancy crib made of solid wood can easily be substituted by something that\\u2019s way less expensive\\u2026 just focus on the basics and then some; give your child a comfortable mattress and a warm blanket and you\\u2019ll be fine.

This is also a good time to look for used items \\u2013 you can get excellent quality children\\u2019s items that other kids have simply outgrown and are going for a song.
Use a Baby Shower to Get What You Need
Similarly, use events such as the Baby Shower to ask for practical and inexpensive gifts so you get two or three really useful things in place of items that the baby\\u2019s really indifferent to... and in so doing, reduce your expenses by getting necessary and basic items.\\xa0 Of course, we all want our kids to look cute and all, so go ahead and buy a few pretty clothes, but stick to thriftier stores if you can \\u2013 they too have plenty good options that will not reduce your baby\\u2019s cute quotient!

Instead, invest in things that matter \\u2013 such as good quality diapers, good quality and healthy baby food and formula, a good car seat, etc.
Take Advantage of College Savings Plans
As soon as you have a baby, you can also start socking away for baby\\u2019s education \\u2013 with tax free contributions to Coverdell Education Savings Accounts (Coverdell ESA) and Qualified Tuition Programs (QTPs or 529 Plans) that let you invest today so the money grows tax-free and can be withdrawn tax-free provided funds are used for qualified educational expenses such as tuition, educational supplies,'