Although parenthood is a priceless experience, babies aren’t cheap. One of the most important parts of preparing for a child is knowing where you stand financially. Most new parents automatically think of the how expensive diapers are, but there are so many more things babies need -- starting with maternal visits to the obstetrician and the birth itself. Here’s a look at what to consider when you get ready to start budgeting for your new baby.
Medical Expenses
Depending on your insurance plan, you may have to spend several thousand dollars out-of-pocket before you even meet your little one. Some insurance companies cover OB-GYN visits fairly well, while others consider them “specialist” visits, which means you have to meet your deductible before they start paying. Medicaid has a policy specifically for pregnant women who don’t normally meet the financial requirements of the program but need a little extra help during gestation. Most policies also cover newborns for a few weeks after birth until you can get them on their own plan.
One Time, Big Expenses
There’s a lot of other things you’re going to need to spend money on just to get your baby home from the hospital. Baby showers and excited grandparents are great for a lot of these items, but you can’t bet on getting everything you need as a gift. Items like cribs, car seats, strollers, diaper genies, high chairs, play pens, and any other kinds of baby “furniture” can be pretty pricey. If your budget is strict, a lot of these things are available from second-hand stores for a fraction of the price. Remember, you’ll also need clothes, and babies grow fast. You may get plenty of newborn and 0-3 months size onesies at your shower, but the average baby changes size five times in the first year -- that’s a lot of wardrobe for one small person.
Day-to-Day Care Expenses
Just like you need deodorant and toothpaste on a daily basis, your baby is going to have a few requisite needs: diapers, diaper rash creams, wet wipes, shampoo/soap, and lotion. The good news is, a large bottle of baby soap can last close to six months, and most infant toiletries are fairly inexpensive.
Diapers, on the other hand, can cost upwards of $100 a month in the beginning. Start with the least expensive brand; if your baby doesn’t respond well, try the next best. There’s no reason to buy to the most expensive diapers on the market. Some parents prefer cloth diapers, but be sure to compare the cost of laundering them.
Unless one of you is going to stay at home, you’ll have another regular expenses, daycare. Daycare costs vary widely depending on the area, but, regardless of where you choose, you should expect to pay several hundred dollars a month. For some families, the cost of daycare outweighs the worth of a second income.
Feeding Expenses
If you plan to breastfeed, your grocery bill should stay roughly the same. Even so, you may want to invest in a pump -- and the handy pads that keep your bra dry. For moms who opt to bottle feed or don’t get a choice, formula costs are outrageous. At best, expect to pay about $15 a can, and expect your baby to go through about 8-10 cans a month. Whether pumping or using formula, you also need bottles. Around the six month mark, it’s time to start including baby cereals and prepared baby food, or a whole bunch of produce to make your own. Babies are expensive from end to end. But they’re also totally worth it.
