The excitement abounds when you’re expecting a new baby. No one can’t take that happiness from you, but a new child to the family also means that you have to prepare for it financially. That’s why creating a baby budget is not to be understated. Having an idea of the cost of having a baby and how you can save or budget for it will make it easier for you as a parent.
Learn how to create a baby budget and save money for your new baby by reading this blog post.
Reasons Why You Should Create a Budget for Your New Baby
A rapid increase in your expenses is inevitable when you have a new baby. With this expectation, it’s a must to prepare for the cost of having a new child added to the family. Here are the reasons why a baby budget is essential.
It Helps You Prepare for Oncoming Expenses
You won’t be caught off guard if you have a budget for your new baby. Creating a budget means being ready for the oncoming expenses, and it’s all for the benefit of your new child. Of course, you have to ensure that you have the money to buy your baby the food and the things he/she needs.
You should also make sure that you’re prepared for unexpected expenses, such as special dietary needs, medical bills, or special services or therapies. You can know more about budgeting hacks by visiting the site of Crediteck.
It Helps You Balance Income vs. Costs
It’s a rule of budgeting to balance what you earn with your expenses. You must keep in mind to have available money for unexpected expenses. So you should avoid spending your money on unimportant things.
Balancing your income vs. costs helps you know where to spend your money, what expenses are to be minimized, and how to allocate the costs that come with having a new child into the family.
Typical Expenses That You Must Include in Your Baby Budget
It will be easier for you to make a budget if you have an idea of the expenses to be covered in this budget. You can start with this list of typical expenses below.
Infant Formula
If you can’t breastfeed or decide not to, giving your baby an infant formula is important. Now, not all babies can take just whatever formula you give them. Some may need a specialized diet that can be a bit expensive.
Infant formula can cost you around $150 to $200 a month. So, you better consider what brand of infant formula may be best for your baby and include it in your budget.
Diapers
A newborn baby can use as many as ten diapers a day. This can cost a parent approximately $50 to $70 a month. While each infant will differ in diaper use, it’s advisable to consider this number than sorry. One tip to save money is to buy diapers at a wholesale store or online.
Clothing
If it’s your first baby, you may be surprised how fast your child grows in its first year. Your baby’s growth can cause you to shell out more money for its clothing. It means buying new sizes of clothes as your baby grows.
For you to save money for this expense, you can consider buying baby clothes at discounted prices or asking family or friends for old baby clothes. Baby clothes can cost you around $50 to $100 monthly.
Laundry Supplies
Diaper accidents and spit-ups mean more laundry. That’s why it’s crucial to consider laundry supplies like detergent in your baby budget. Laundry supplies can make you spend $15 to $20 a month.
Cleaning Supplies
A lot of cleaning is unavoidable if you have a baby in the house. You should ensure that the air and surfaces are sanitized to keep your child away from viruses and diseases. In this case, you need cleaning supplies, such as wipes, disinfectants, detergents, and a vacuum cleaner. Cleaning supplies can cost around $20 a month. If you want to cut back the cost of cleaning supplies, shop at wholesale stores or buy ones with discounted prices.
Prescriptions
Your doctor may prescribe medicines for you and your baby after giving birth. This is another thing that you should prepare in your budget. For you to save money on this expense, ask the doctor if you can take generic options for the medicines prescribed or if you can avail of discount cards at your nearby pharmacy.
Emergency Visits
You can never know when emergencies will occur, but financial preparation can help you big time when they do happen. That’s why getting health insurance is a must to cut down the costs of emergency visits.
Without insurance, an average emergency room can cost around $2,000. Even if you have health insurance, there are deductibles you need to pay. Health insurance premiums can cost you about $400 to $600 a month.
Child Care
If you decide to go back to work and place your baby in the care of someone else, you need to include the expense that comes with it in your budget. Child care can cost you a significant amount of money, probably eating up 10% of your income. To cut back the cost, you can ask a family relative or a friend to take care of your newborn.
Increased Utility Bills
Having a new baby in your home can cause your water, gas, and electricity bills to rise. For instance, you need to bathe your baby, do laundry, wash the baby’s dishes and bottles, keep your home warm, etc. Rising utility bills need to be considered when making a budget for your new baby.
Education Funds
Thinking about saving money for your child’s education is never too early. When just planning to have a baby or after giving birth, you can already consider having an education fund for your child. The more you can save money if you start it earlier. By the time your kid goes to school, you won’t have financial problems with the education expenses.
There are educational plans that allow family relatives or friends to contribute to your child’s education expenses. It’s an excellent option for parents who want to cut back the cost of setting up education funds.
Other Budget Considerations
- Income Changes. It’s crucial to create a baby budget and save money because you don’t know when your income changes. If you opt to stop working to focus on your baby, you need to be prepared for it financially. If you don’t have enough savings beforehand, you need to cut down your expenses to have more for your baby’s needs.
- Upsizing Your Home. If you’re living in a house without enough room, you can consider upsizing. But you need to keep in mind the costs that you’ll incur for this matter, such as the taxes, utilities, insurance premiums, and mortgage payment. But you can consider paying off the major expenses first before upsizing or settling in a bigger home.
Takeaway
Now you know how to create a budget for your new baby. Parents need to be financially wise when dealing with their child’s needs. Setting up a budget can help you balance your income and expenses and better provide for your newborn. Follow the guide above for that purpose.