Bringing home a new baby is an exciting time that can turn financially overwhelming quickly. Babies are cute money machines that require a lot of expensive things and lifestyle changes that many new parents don’t think about until it’s too late. You have to provide your baby with only the best and highest quality products to ensure safe growth and development which requires a lot of money. One of the most important things is the child’s nutrition, and if you decided to bottle-feed your baby with formula, make sure you are providing organic certified baby formula, such as HiPP AR.
If you’re planning for a baby and wonder what you’ll need to think about financially, here are five critical steps you should take to ensure your family is ready for its latest member.
Get out of debt
You’re about to face a lot of significant expenses, so if you’re in debt, it’s a good idea to get rid of as much of it as you can before the baby comes. Check out Credello’s debt guide for help figuring out which strategies will work best for your situation and make becoming debt-free before your baby’s due date a priority.
Being debt-free means having the freedom to choose how you spend your time and money because you’re no longer beholden to creditors. Think of how else you could better spend that money, such as investing in your child’s education or ensuring they have the best in medical care. Isn’t that worth making an effort to get out from under your debt?
Start saving for big purchases
There are major costs that need to be covered before the baby comes, so it’s important to set aside money specifically for those expenses as soon as possible.
Consider the costs of things such as:
- Cribs, bassinets, and bedding
- Traveling to and from doctor’s appointments
- Breast pumps
- Baby furniture such as swings, high chairs, bouncy seats, and changing tables
All of these can add up quickly. Once you decide to have a baby, start saving for everything you’ll need when they come home from the hospital.
Rework your budget to include new expenses
Next, you’ll need to revamp your budget to account for the new ongoing costs that come along with a baby. Here are a few examples of things you should consider:
- Child care
- Education
- Wellness visits
- Formula and baby food
- Toys
- Clothing
- Diapers and wet wipes
Discuss potential changes to the family income
Depending on where you live, government programs often can assist you or your partner with keeping your job while also taking time away to care for your baby. Many jobs and governing bodies will have options like maternity/paternity leave and protection laws such as the Family Medical Leave Act (FMLA) in the United States. Sit down with your partner and discuss how the family income will be affected by the temporary change in income and how you’ll adjust your finances.
If you’re going to be a single parent, you must explore what options will be available to maintain an income while also caring for your new child. Don’t wait until the baby is here to figure out how you’ll pay the bills.
Change your shopping habits
Baby stuff adds up fast, but there are ways you can get around paying thousands of dollars for things your child will grow out of quickly.
- Use consignment or thrift stores for gently-used baby clothes, maternity clothes, toys, and bedding.
- Join “Buy Nothing” and freecycle groups to pick up necessities for free.
- Reach out to other parents you know to see what they might no longer use that you need.
- Adjust your lifestyle. If you’re already living outside of your means, then the extra expenses that come along with a baby will only make the situation worse.
It’s time to reprioritize the way you spend money and make some changes. Consider things such as moving to an area with a lower cost of living or downgrading your car to a more affordable model.
The bottom line
Having a baby is an exciting time for parents but is also a time that requires a lot of change. If you’re planning to have a baby soon, consider these five tips and start preparing how you’ll give your baby the best, most financially stable life possible.
