Four Expenses to Consider When Preparing for a New Baby

Bringing new life into the world is rewarding, exhilarating, and scary. There are so many costs associated with having kids that it can seem very daunting. Arranging your budget to accommodate for those additional costs is vital to ensuring your constant financial security. Here are the things that you need to start considering as soon as you learn you’re expecting:

Medical Care Along with pregnancy and childbirth comes a slew of medical bills, and with the United States being the most expensive developed country to give birth in you can expect your costs to be high. With childbirth costs averaging from $30,000 for normal births and $50,000 for C-sections, says that even with insurance you can expect to pay an average of $3,400 out of pocket. Add onto that your prenatal doctor’s visits and your baby’s first year checkups, and you’ll build up more charges than you would have considered.

Loss of Income It goes without saying that having a child will greatly alter your way of life, from your sleeping habits to your social life. A big consideration will also be the way it will affect your income. If one parent plans to take time off work to take care of and spend time with your newborn then you will have to budget and accommodate for only having one income instead of your usual two. Even if both parents plan to continue working you will have to consider childcare costs. If you have family or friends who would be willing to take care of your baby, even if it’s just once or twice a week, this could really help lower your daycare costs.

Big Items Buying a new crib, car seat, highchair, baby monitor, and changing table (if desired) can really put a dent in your budget. Space these bigger items out over the months leading up to the birth, and make sure you have a plan for what you’re going to buy. Doing some research ahead of time to find the perfect items for the best price to fit your situation will help to not only reduce costs but also your stress levels.

Everyday Items The presents you get from throwing a baby shower can help in the initial few weeks or months of your baby’s arrival as you’re sure to receive diapers, clothes, and some toys. However, as your baby continues to grow so will your costs. You’ll start needing to buy bigger sizes of diapers, clothes, and shoes, and, depending on when you choose to stop breastfeeding (or if you decide to supplement with formula from the start), then you’ll also have the costs of formula and baby food to consider. These items may seem obvious and basic, but if you don’t plan ahead the pressure of having to constantly buy things might wreak havoc on your budget.

Founded in 1992, Jackson Wealth Management is an independent, fee-only investment advisor. Founder George P. Jackson has been the CEO/CIO of the firm since its inception with the goal of delivering value to his clients and his associates. 

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