When starting your family, you will have new responsibilities to plan for. You may find that medical costs can add up even if you have access to public healthcare or employer perks. During pregnancy, you may incur extra costs from prenatal check-ups, prescription medication, dental care and unexpected medical costs. Being aware of the types of costs you may incur will help you create a realistic budget to help protect your savings.
Budget For Pregnancy And Birth
During pregnancy there are various medical costs to be aware of. You may incur extra costs from prenatal appointments, tests, ultrasound scans and prescription supplements. If you live in Canada you may be eligible for free healthcare as some medical costs are classed as necessary and can be covered by your provincial or territorial health insurance plans. However, this can differ depending on what is covered. Some fertility treatments, private prenatal care and prescription medication may incur extra costs. Being aware of what medical care you may require will help you know what costs you may incur.
The cost of giving birth will vary depending on your individual circumstances. If you give birth in hospital, this will incur different costs compared to giving birth with a midwife. Find out what services are covered and if there are additional charges from your healthcare provider. If you are planning to use private rooms, specialist care or any other additional services find out what the costs will be. This will help you know what your family will have to pay.
Check Your Healthcare Benefits
Before beginning your pregnancy or family planning, check what healthcare benefits you have available. Depending on your employment, provincial healthcare and private healthcare you may have different services covered. Prescription medication, physiotherapy, dental care and eye care can all have different rules. Knowing what your annual limits, excess/deductibles, waiting periods and what isn’t covered will help you know what areas you may be missing out on. This is especially important if one parent is going to be changing jobs, reducing hours or leaving their job altogether.
Find out if your family can cover the extra costs of having a new member. Your employer may require you to register your newborn within a set time frame. Private healthcare may have a different process. Checking what family insurance you have can help you know if it is more cost effective to add onto your current policy or choose another option. Consider how much you will be paying per month, what services are covered and what costs you may still incur. Knowing what you are entitled too and what the deadline is to register will help avoid any unnecessary issues.
Create A Savings Account
Creating a dedicated savings account can help you manage your medical costs. Before your pregnancy or birth you can save up for any prescription medication you are entitled to, appointments, products and services that aren’t fully covered. How much you save will depend on your family income, what coverage you have and what medical costs you expect. If you don’t have much savings to begin with, start by saving a small amount each month and increase when you can. Having a dedicated account will help you keep track of your savings.
Consider unexpected medical costs. Your child may require extra appointments, specialist appointments or treatments that involve travelling. Create a savings pot for unexpected medical costs to cover essential bills in your home. Consider if your income may change whilst you’re on parental leave. If you’re earning less it may be harder to cover unexpected costs. Having a flexible savings plan will help you be prepared for any changes.
Plan For Your Child’s Healthcare Costs
After giving birth you will have ongoing healthcare costs. Your baby will need regular check-ups, vaccinations (depending on what is recommended in your area) and to check their development. Whilst many essential services are covered by public healthcare in Canada, you may still incur some costs for prescription medication, products, dental care or travelling to appointments. Adding this into your monthly budget will help you prepare for regular costs.
As your children get older you may incur extra costs from dental check-ups, prescription glasses, referrals to specialists and unexpected illnesses. Check your benefits yearly to know what changes there are with how much is being covered. Keeping your receipts and insurance documents will help you claim back for any reimbursements. Regularly checking will help ensure that your budget reflects what you’re actually spending.
Conclusion
By knowing what healthcare coverage you have, what medical costs you may incur and what future costs you may have you can prepare for your healthcare costs when starting your family. By checking your benefits, regularly saving and planning for ongoing care you can minimise any uncertainty around your finances during pregnancy and your child’s early years. Creating a realistic budget to cover regular appointments and unexpected costs will help you feel more confident with your financial decisions.