SAN DIEGO — It's no secret raising kids is expensive. However, some people are not aware of just how much it can be to actually have a baby. Experts say the out of pocket costs are more than double compared to just five years ago.
It's not just baby wipes or toys, but hospital bills.
In 2015, out a pocket medical costs averaged $5,000. In 2020, it can be up to $12,000.
So, you may be wondering, how am I able to pay for that? Here are some tips.
First, plan ahead and save. You never know what surprises could happen, from complications to an extended hospital stay.
Second, the "Secure Act" allows anyone who is having a baby or adopted a child within the last year to withdraw $5,000 from an IRA- penalty free.
You can't do that with your 401K, at least, not yet, but it's still possible to give yourself a loan out of your 401K.
Lastly, you may think you know your health insurance plan and what it covers. However, it's complicated. It's worth speaking with your HR department to educate yourself on all the options available.
If it's during open enrollment period, consider selecting one plan based on whether or not you plan to have a baby that year.
If you qualify for low-income, look into all your options and ask plenty of questions to ensure you'll have the coverage when you need it.