You will not need a calendar or journal for financial records, just a big, well-organized file cabinet. It is essential to keep track of bills and payments. Dealing with financial records is a major headache for many parents, but keeping good records can prevent financial catastrophe. The following are ideas about how to organize financial records:

• Have hanging files for hospital bills, doctor bills, all other medical bills, insurance explanation of benefits (EOBs), prescription receipts, tax-deductible receipts (e.g., tolls, parking, motels, meals), and correspondence.
• Whenever you open an envelope related to your child’s medical care, file the contents immediately. Don’t leave it on the desk or throw it in a drawer.
• Keep a notebook with a running log of all tax-deductible medical expenses, including the service, charge, bill paid, date paid, and credit card receipt or check number.
• Do not pay a bill unless you have checked over each item listed to make sure the charge is correct.
• Start new files every year.

To be honest, the paper trail really gets me down. I can only deal with the stacks every few months. I open things and make sure the insurance company is doing its part, and then I try to sort through and pay our part.

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I started out organized, and I’m glad I did because the hospital billing was confusing and full of errors. I cleared out a file cabinet and put in folders for each type of bill and insurance papers. I filed each bill chronologically so I could always find the one I needed. I made copies of all letters sent to the insurance company and hospital billing department. I wrote on the back of each EOB any phone calls I had to make about that bill. I wrote down the date of the call, the name of the person I spoke to, and what she said. It saved us a lot of grief and money.