How to Budget for a New Baby – a Rough Ride?
Whether planned or not, the arrival of a new baby needs serious thought. A new baby will not just have a huge emotional impact in your life but also a huge financial impact. From the minute you know that a new baby is on the way, you will be overwhelmed by emotions. Happiness, love, excitement, and some fear too.
A new baby is going to mean many changes in your life and not least of all financial ones. You may have to consider a loss of income. Or you may have to spend more in childcare. Whatever it is, a child is for life. Therefore, learning how to budget for a new baby is quintessential.
If you are going to be new parents this article can help you budget for a new baby. It will be a guide on what to expect in the first year and how to be financially prepared for the new arrival.
How to Budget for a New Baby – Consider the Extraordinary one Time Expenses
If the new bundle of joy is going to be first to your new family, then it means starting from scratch. Notwithstanding the fact that most families help and pitch out for the family’s first, you should get organized and see who is going to help you with what. Naturally, the first-time expense in prams, buggies, strollers, baby furniture, and cribs are a consideration. If you know that your immediate family is going to contribute by way of gifts, get them organized in who is going to give what.
However, this is not all. You will need to consider the medical expense of delivering the baby. If you plan to use national health hospitals, you will need to know that there are no surprise bills. If on the other hand, you decide to deliver the child in a private clinic, you will need to make sure that you are aware of all the expenses including emergency ones in case there are any unexpected complications.
You will need to make allowances in your budget. You will absolutely never be able to predict with 100% accuracy on the cost of bringing your child to the world. However, being amply prepared with a sound budget will trim down any shocking surprises. Allow for contingencies.
Consider what it is that you are covered by your insurance. If you have private health insurance, you may wish to have a meeting with the insurance providers and ensure what it is that is covered by your policy. Never assume that all costs will be automatically paid.
The Baby Stuff – Budgeting for a new Baby – Your Personal Expectations
Naturally speaking, we all want the best for our kids. Especially if this is a much awaited first child. However, it is usually ourselves that puts “us” under most financial pressures from high expectations. Whatever our hopes are for our new baby, the height of our expectations is what will determine how we will be budgeting for a new baby. The budgeting process can climb exponentially depending our wants.
Here are a few considerations when budgeting for a new baby.
In today’s world moving about is all about efficiency. If you are planning to move on foot, you certainly need a stroller. More likely, you will be using a car, and you will need a baby seat. This is now imposed by law and therefore not an option. Carry cots and easy perambulators are probably another must and these are just tools to help us move about efficiently.
Here are some things to consider before rushing to deplete your hard earned savings.
Gifts and more. As explained earlier – if the baby is your first, then the family is certainly going to ask what you need in terms of gifts. Make a list and politely channel cash gifts or item gifts directly into what you need. The reasoning should be simple. These people will be expecting this bundle of joy with as much anticipation as yourself. This is particularly so for grand parents. If they are planning to spend money, you can at least ensure to direct it into what you will need.
Consider brands properly. If you are on a shoe-string budget, brand names may not be a solution. You will find that there may be a variety of Chinese brands at a much cheaper price that will serve just as well for the very few months that you will use them. In the long run, the things you will need to carry your child in is just a means to an end. Make your financial life easier by choosing what is well within your budget.
Do not eliminate hand me downs. Friends or family who has just had their own child grow out of them. Considerations need only be made in terms of hygiene and safety if the items you are receiving have had a hard use. Other than that, you will realize a few months down the line, that whatever it is that you dug deep in your budget is ready to be folded and forgotten until your next arrives. Alternatively, your own stuff will be a handy-me-down for someone else. This is part of budget for a new baby.
#2 The Stuff You Will Need at Home
Entertaining the princes in the little kingdom can also be an expensive consideration. There is nothing better to put your baby to sleep that hugging him or her against your chair and rocking them all night. In truth, you will probably be too exhausted to put this as an integral part of your routine. As such the portable swings, the rocking seats and the comfy play mats are all great considerations. Much thought will have been placed by the baby industry not to come up with alternatives of baby entertainment. Just do not get overwhelmed and clutter your home too fast.
There are some things that you will not be able to do without though. Furniture like cots, cribs, mattresses, blankets, and bedding are basics. You might need a changing table, although the kitchen table could probably serve the same purpose just as well. These items put together could run into thousand of dollars if you are not careful. So plan well. Are you looking at how to budget for a new baby? Then you must consider your finances, your income, your real needs and your space.
As the kids grow, you will need safe high-chairs, play pens, toys and educational entertainment toys. How often have you heard parents saying ” I wonder where time flew?” yes time flies and with every new year the requirements of the child and the need to budget around it will always grow.
#3 Early Days. Nursing Feeding and Help – Important considerations for learning how to budget for a new baby
In a utopian situation, all mothers will stay at home and breast feed. In a real world, this could present some challenges at some point. Mothers breast feeding round the clock do get tired. If you are planning this type of nursing then you may need help with the home. If you absolutely need to get back to work because you cannot afford to stay at home, then you may need to curtail your nursing time. You will look into ways of storing breast milk and the tools required to do this. Breast pumps are not cheap. So budget for a new baby even in this respect. If breast feeding is not going to be an option, then you should budget for the cost of formula kinds of milk, and for a few years.
As you can see nursing and feeding can go from almost zero cost into a couple of large hundreds. Be prepared.
A Child Will Be Your Child Until the Day You Die – Ongoing Costs
Since I have lived in third world countries like Indonesia, I have seen the value of caring for children in the hope that later your children will care for you. In our western society, this is not so much the norm any longer.
However, there is no argument that costs of bearing children are ongoing. From the day a child is born, until it becomes financially independent as a mature young adult, you will constantly need to budget.
Here are a few immediate considerations to make when planning a child.
If you are a millennial it will not be surprising that both spouses need to get back to their work and their career in order to afford a family. No matter the age of your child, you will have ongoing expenses for its care and its education. From the moment you decide to put a child into childcare so that you can spare a few hours to your routine work, you are looking at serious budgeting. Inform yourself on different options and government assistance before shouldering all the responsibility on your own.
Even before exposed to any of the usual bouts of flu from other kids at school, children are fragile and do get sick constantly. The cost of pediatricians, medicines, and standard care needs to be budgeted. Regular visits to the doctor, inoculations, and wellness visits are part of your routine rather than emergency fund budget plans.
These are not to discount the regular costs of food, diapers, clothing etc., these are extraordinary costs, which are not so unusual. These are considerations that are important in how to budget for a new baby.
How To Budget for a Baby – Conclusion – What to Consider
Unless you decide to go it alone and be a single parent, a child born to a family is dependant on two parents. Therefore, deciding which of the two spouses will take on the higher percentage caring role, and which will take on the financial role is crucial. If one of the parents decides to stay a home, this will have a different impact on how to budget for a baby.
One of the parents may decide to leave an income behind in order to care for the child at home. This will forgo many other expenses which would have to be paid to someone else. However, there are many elements to drop in the weighing scales.
Some parents go as far as deciding to do home schooling. Naturally, this will save a lot of cash but requires discipline and preparation.
Others decide to make the ultimate gift to their child but taking out a child insurance policy. A savings plan for the future.
Whatever role you decide to take as a parent, from the minute the child is planted to its entire lifetime, it will be needing attention, loving care, and certainly a lot of budgeting plans. Therefore exploring how to budget for a new baby is absolutely essential.
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