How New Parents Can Financially Prepare for a Baby

August 20, 2020 NannyPod USA Incorporated

You don’t need to have gone through it before to know that preparing for a new baby makes for an incredibly exciting and anxious time. On the one hand, nothing in life quite compares to expanding your family and welcoming a new baby into the world. On the other though, there’s an endless list of things to prepare for, and your life is about to change permanently!

Among those things to prepare for are the financial hurdles that come with a new baby. Because as you’re no doubt aware, babies cost money! This is an unfortunate reality, but something it’s wise to recognize in advance — because with strategic preparation, you can lessen the financial burden. And that’s what brings us to the tips we’re offering below.

Explore Working from Home

It’s important for new parents to take time off if and when they’re able to. Maternal and paternal leave are essential for the good of the baby and the family. However, for those who may have the option, it’s also a good idea to explore the idea of working from home. Working from home while parenting gives parents the ability to continue hands-on care even after maternity and paternity leave time expires. It’s not easy, but financially it can be a strategic move, as you get to keep on working and have a continuous income stream.

Analyze Costs Honestly

Interestingly enough, one of the most important financial steps you can take to prepare for a new baby is to get real about the costs. As we said above, you’re undoubtedly aware that babies cost money — but going beyond the cliché and analyzing costs honestly and thoroughly is the best way to prepare yourself for what’s coming. Estimates indicate that middle-aged, middle-income parents should expect to spend over $230,000 raising an individual child from birth to college age. Now, that sum is spread out over time, so it’s not as if you need a spare $200,000 when the baby arrives. But being real about this sum is the best way to start addressing it.

Buy Less

There’s a temptation among new parents to buy all of the baby things. After all, when you’re preparing for a child (and your friends and family can’t talk about anything else), it’s easy to get caught up in all of the cute baby things you can do: themed wallpaper, giant stuffed animals, unlimited adorable onesies…. Some of this is certainly fine, and you should get what you need to make sure the baby has a happy, healthy, and comfortable environment. But if you simply buy less — avoiding turning a new baby into an excuse for an expensive shopping spree — you’ll have more money on hand for the important stuff.

Know Your Healthcare Situation

Healthcare costs are also baby costs, and if you plan to have a baby (or are already pregnant), this is something you’ll want to consider right off the bat. Last year a story surfaced about a mother who didn’t realize until too late that her health insurance didn’t cover her pregnancy — resulting in some hefty, unexpected bills. While one woman led to this story, it’s a problem that affects millions every year. Solutions to the problem can vary depending on your coverage and financial means — but checking what your health insurance will and won’t cover is an important part of your financial preparation.

Start Saving for Education

When we talk about saving for education, the term “college fund” comes to mind. This is certainly an important part of raising a child, and it’s something for which you might want to set up a specific savings account or investment fund. But saving for education means early education (or even daycare) also — and the costs can be hefty. If you can start setting a little bit of money aside here and there, even before the baby arrives, you’ll be better equipped to meet those costs a couple years later.

Get Help from Family & Friends

Now is also the time to get help from family and friends! The people around you are likely to be eager to help where they can, and it’s perfectly acceptable to embrace that help. One way to do so is by accepting hand-me-down clothes, accessories, and toys that can actually save you quite a bit in the early going. Another is by updating the baby shower concept, such that you start a “honeyfund” rather than a gift registry, or have friends sign up to bring meals when the baby first arrives (rather than sending gifts). These are small steps, but they can save both money and hassle in your earliest days as new parents, and help set the tone for a strong financial approach.

In the end, having a baby is still expensive, and there’s no way around it. But by being honest about the costs you’re facing and taking steps to address them early; you can be adequately prepared.

Article exclusively written for www.nannypod.com

By Rae Jeanne

NannyPod provides long term nanny matches and short term occasional date-night babysitters and infant care on demand, at an affordable price. Our service is convenient, safe and secure for families and our staff. Parents can request childcare instantly by using the NannyPod app. Get started with NannyPod today and find babysitters or nannies for your childcare needs!

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