Preparing Financially For A New Baby
One of the biggest “life events” many of us experience during our 20s (or 30s) is the arrival of a new member of the family. A new baby can bring a great deal of excitement and responsibility. The great thing about a new baby is that you have about 9 months to prepare for him or her. Your financial preperations are very important. Here’s what I’ve learned going through the process.
There are a number of expenses that come with a new baby. Some of the major ones are:
- Medical expenses with repeated doctor visits as well as costs of the birth / hospital stay – Estimate $750 – $2,000
- Setting up a nursery can vary big time depending on how overboard you go, but most people will buy the basics such as a crib, rocking chair, and some other basics – Estimate: $300 – $1,500
- Clothes and other baby essentials such as bottles, diapers, changing pads, blankets, etc. – Estimate: $300 – $500
- Safety items such as strollers and car seats can also get expensive and might not be items you want to skimp on – Estimate: $200 – $800
Additionally, you can count on an increase in your monthly spending. Items such as diapers, formula and clothes will need to be continually purchased since they’re being consumed or out-grown. I estimate between $200 and $300 a month on the day-to-day needs of a baby.
The wonderful thing is that some of the upfront costs might be saved due to the generosity of family and friends during this exciting time. Events like baby showers sometimes end up being generous gift giving events where you get many of the items you will need.
I’ve definitely left out many items in the above list, but it’s a pretty good starting point. I suggest estimating out the total costs of a new baby along with 3-6 months of anticipated day-to-day costs. Total that number up and start putting money away during the pregnancy to attempt to reach that number. There are plenty of new stresses with a new baby ( especially if it’s your first baby) so do your best to eliminate the uncertainty over the financial aspect of this process.
If this isn’t your first baby, then you likely have many of the major items that you purchased for your first baby. While this will help for some of the up-front costs, you will still need to buy the day-to-day stuff for a new baby (in addition to your other children’s needs). Multiple kids can definitely add up!
If you’ve gone through this process, what are some tips you would share with a soon-to-be parent?