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You can count down to the holidays in a matter of minutes, rather than days. Of course, that’s the moment your child comes down with the sniffles. Or worse, they slip on some ice and need to be rushed to the hospital.
While your child’s health and safety always come first, your budget is a close second in thought. Once the rush of your emergency is over, you’re stuck paying a bill — even if you have public or private health insurance.
Covering an unexpected expense over the holidays can be tricky, but not impossible. Here are some ideas on how you can cover these new costs. Don’t worry if you’ve maxed out your credit cards.
You May Have to Pay More Than You Think
Your public health insurance saves the day when your kid needs a doctor right during the holidays. It covers the big costs associated with the most basic appointments and treatments.
Unfortunately, you might be on the hook for other medical expenses if you don’t have a private plan to pick up the slack. And even if you do, your plan may only cover 70% of your reimbursement. In other words, you still have to pay 30% of these bills.
Put Other Expenses on Hold
Financial hindsight is 20/20. You maybe didn’t think to set aside cash for emergencies. Or maybe, things were so tight this year that you couldn’t save anything at all.
Your budget could still hold the answers. Look for any unnecessary spending in your future. Can you cancel them in time? Depending on the timing of your kid’s health issues, you might free up cash you can put towards their care.
Take Advantage of Credit
Most people have at least one credit card in their wallets. This piece of plastic provides a safety net in emergencies. However, they are also everyday shopping accounts. If you put most of your holiday spending on your credit card, you might not have enough room for prescriptions.
Some financial advisors recommend adding a line of credit to this safety net. You can see if you qualify by going online and checking different banks, online lenders, and credit unions. If you get started and get support through an approved line of credit, you can rely on this account whenever unexpected emergencies test your family’s finances.
Ask for Help
If you go to a private healthcare provider for therapy, ask if they provide financing plans. They might be willing to work with you to find a billing option that works for everyone. These plans might defer your due date to a new day when you can confirm you will have the money. They may also let you pay off what you owe in installments, like a car lease or an installment loan with monthly payments.
Conversations about money can be challenging during the holidays. But it might be worth the discomfort if your loved ones can help.
Bottom Line: Prepare for Next Time
Dealing with medical expenses around the holidays is stressful. So do yourself a favour; prepare for next year.
You might think it’s impossible to predict exactly how your child will hurt themselves in the future. And you would be right, you can’t prophesize accidents and emergencies. But you can prepare for them, even if you can’t identify them by name.
A general emergency fund is your ticket to financial preparedness. Every month you manage to set aside cash for emergencies, your savings grow. Eventually, you’ll have an emergency fund capable of covering a surprise chipped tooth or prescription inhaler.
