For all the money new must spend, there are thankfully some tax savings associated with parenthood, which will help balance things out, at least a little bit! Chat with your accountant to determine if youāre eligible for the Child Tax Credit. Now is also a brilliant time to research if your employer offers any Flexible Spending Arrangements (FSAs). āWith a Dependent Care FSA, you can use pre-tax dollars to pay for qualified out-of-pocket childcare expenses,ā Williams notes.
If you know youāre going to need extra money for your baby fund, now is a great time to consider new sources of income that might work well with your new lifestyle, recommends Joyce Marter, a licensed psychotherapist and author of āThe Financial Mindset Fix: A Mental Fitness Program for an Abundant Life.ā