At First Security State Bank we understand that adding to your family may not only be an emotional decision but a financial one as well. With the growing costs of childcare alone, it’s important to have a well-rounded plan for covering the expenses of your expanding household. In order to plan most effectively, we recommend structuring your budgeting into these three stages:
Beginning or Before Pregnancy: Examine your current health insurance to determine an estimate of cost for both prenatal care and delivery expenses. While many insurers offer prenatal care at no or little additional cost, the price for delivery can be complex. Study your monthly premium, annual deductible, and out-of-pocket limits for the calendar year to help establish these costs before the baby is delivered.
After Birth: Once the baby is born, there will be traditional costs such as health care, food, diapers, clothing, and more. However, many new parents also spend more on take-out meals to help lessen their time cooking. These expenses, along with a decrease in income for parents on maternity leave, can cause many parents to slide into debt. To help alleviate the burden of these growing figures, we recommend creating a monthly budget to designate every dollar to a purpose. By allocating a specific dollar amount to each area of your spending, you can ensure that all of your costs are covered while also planning for the future.
During the First Year: As your child continues to grow, the costs for new clothes and equipment will continue to grow with them. Many expectant parents can spend upwards of $16,000 during the first year of their child’s life, and variables such as location, number of children, and other factors can contribute to the overall costs as well. When possible we recommend saving for each step in your child’s growth. From birth to three month’s they’ll need many one-time purchases, but during the later stages, you may have adequate time to save for each time period’s necessities.
Continue to grow your finances as you grow your family using First Security State Bank’s trusted deposit services. We’ll help you organize your funds, and make the most of your savings.
Many of us don’t consider the possibility of our child’s identity being stolen, making them an easy target.
Do you know what your child’s credit report looks like? Of course not! Why would you check a credit report for someone who doesn’t have any credit? While it may seem ridiculous, this is the reason that children are easy targets for identity theft.
Thieves know adults aren’t going to be checking a credit report for a child so they can run up debt for quite a few years without being detected. Common ways that thieves get information about children are medical records, mail tampering and computer searches. Here are a few ways to help protect your child’s identity.
- Guard their Social Security number – Never carry your child’s Social Security card in your wallet, give the number out over the phone unless you trust the recipient, and don’t give them the number until he or she is old enough to understand what it is.
- Be mindful when posting information about your child – If you want to post on social media that it is your child’s birthday, don’t reveal their age. Thieves can use that information to get their complete date of birth and access personal information. If you have a child online, stress to them the importance of protecting personal information on the internet.
- Be careful with their birth certificate – A lot of club sports teams ask parents to present a birth certificate as proof of a child’s age. If your child’s coach asks for personal documents, make a copy and show it to the coach. Put the copy in a sealed envelope with your name on it and let the coach know that you expect to get the envelope back unopened at the end of the season.
Signs that your child’s identity has been stolen:
- Your child receives unsolicited credit offers or letters from debt collectors
- If you try to open an account for your child and the bank tells you that an account with your child’s Social Security number has already been opened
- The IRS sends you a letter saying that the Social Security number listed for your child on your tax return is a duplicate
Unfortunately, identity theft is becoming increasingly common and nobody is free from risk, including children. First Security State Bank wants to keep you and your family safe and at peace. Contact us today if you have any questions or concerns about your family’s financial security.