Have a baby? Here’s how the right credit card can help

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There is nothing quite like welcoming a new baby into your family. But that little bundle of joy could result in a plethora of bills.

On the one hand, if this is your first baby, you will need a lot of equipment. Your baby will need a place to sleep, and you’ll need a changing table, stroller, car seat, and a host of other items just to function with a baby.

Then there are the inevitable everyday expenses that babies incur, such as diapers, wipes, and clothes. Plus, if you are working, you will face the ever-astronomical cost of childcare.

All of these expenses can seem overwhelming, especially if you are facing them for the first time. And that is why it is so important to choose the right credit cards to help cover the costs.

How credit cards could cushion new baby spending

When you bring a baby into the mix, spending more money is usually inevitable. But the right credit cards could earn you extra cash, making those expenses more manageable.

Some credit cards offer additional cash back rewards on grocery store purchases, for example. So if you buy a lot of diapers and formula from the supermarket, you should also see more cash back as a result.

Also, while babies don’t need solid foods for the first few months, over time you will need to start feeding your little one infant cereals and purees. These can add to your grocery bill, but choosing the right credit card could help offset your higher costs.

If you buy a lot of equipment before your baby arrives, you could easily get cash back if you apply for a new credit card with a generous sign-up bonus. Some credit cards have great offers, like $ 500 cash back to spend $ 3,000 within three months of opening your account. Now, that could normally be a hard spending threshold. However, if you buy a crib, stroller, and a host of other equipment for your baby, you could easily spend over $ 1,000 on those initial purchases alone, helping meet the spending requirements for a big bonus.

Are you ready with the right credit cards?

You’ll often hear it said that there are some financial steps that are worth taking before you have a baby, like building up your emergency fund and pricing the cost of adding your child to your health insurance plan.

In addition to checking these items off your list, do an assessment of your current credit cards and make sure their rewards programs meet your needs. If not, it might be worth applying for a new card so that you can get more money back for baby’s day-to-day expenses than you will absorb.

Likewise, compare credit cards and examine different signup bonuses to find one that matches your changing needs. Getting a good cash back reward might alleviate some of your financial stress as you adjust to life with a baby.

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