What Will Your New Baby Need?
There are many expenses associated with caring for a baby. Depending on your situation, they may not all apply to you, but it's important to be aware of all the potential costs so you don't overlook anything as you budget for your new life as a parent.
Baby Gear
After looking at all of the other monetary needs you must consider before having a child, it is no less important to look at the physical “things” that you may want to consider. You must admit, it's not easy to pass up the hundreds of brightly smiling baby toys or pastel nursery quilts.
In the interest of focusing on what is needed versus what you want, start with your list of must-haves!
Car seat
Crib or co-sleeper
Changing table
Clothes
Diapers
A few toys
Stroller
Not every family will need all of these items. For example, you may choose to carry your baby in a sling or other baby carrier rather than using a stroller. You might skip the crib in favor of the family bed or co-sleeping. This list can help get you started by thinking about what many new parents will want to have.
Just because your new baby needs things doesn't mean that these things have to be brand new. Do not hesitate to borrow any of these items from friends or family members. You can also start shopping at secondhand stores for some of the big-ticket items like a stroller or a crib. Better yet, you can also register for these items on baby shower registries.
While there are many things that your baby may need or you may want, there is plenty of time to purchase most of these items. Other than borrowing and purchasing items at a secondhand store, you may also simply wait. You might find that your baby balks at the idea of being placed in a swing. Wait until your baby arrives to make some of these types of purchases.
Feeding Your Baby
When budgeting for the things your new baby will need, you will also want to add food-related expenses for your child. The cost of formula is estimated to be about $1,000 per year per baby. This doesn't include other related expenses.
This includes bottles, energy costs increased due to washing, bottled water or energy related to sterilizing water, increased visits to the pediatrician, more missed work days due to babies who tend to have more illness than their breastfed counterparts, and so on. The good news is that there is a bundle to be saved by breastfeeding!
It costs $8,740 to $9,860 per year to raise a child to the age of 18 according to the U.S. Department of Agriculture. This is based on a child in a two-income, two-child middle-class family making between $39,100 and $65,800 a year. That's about $160,000 per child by the time the child reaches 18 years old, not including inflation.
Breastfeeding is not only cost effective but has a host of health benefits to you and baby. You will save money in doctor's visits because breastfed babies are healthier babies in general since your baby will actually build immunities from your breast milk. Breastfeeding can reduce your risk of breast cancer, help you lose weight more quickly, and save money.
Child Care
Child care is another big expense. It's not uncommon for day care to cost $125 to $400 per week. If you use an in-home day care run in someone else's home you may be able to save money. It generally costs more to have help in your home, such as a nanny.
There may be ways you can save money on child care. This includes telecommuting to your job one or more days per week. Or perhaps friends or family would be willing to watch your baby for a reduced fee. Some people are able to work flexible hours so that one parent is always home. There are benefits and drawbacks to each of these situations for your family. It's best to discuss them now while you are in the planning phases of pregnancy.
Budgeting is a superb way to prepare for the costs of a child. Looking at your budget prior to conceiving is extremely beneficial because you are able to fill in any gaps you have. It also gives you a look at what may be needed.
