Ever heard of pandemic babies? The number seems to be rising. If your family is soon to welcome one, you must prepare. It is an exciting and financially overwhelming time. A new baby, especially during this time of world crisis, can mean major expenses. Below are some tips to prepare financially before your newest addition arrives to the family.
One-time expenses to expect
Delivering a baby in the U.S can give your wallet a massive shock. Medical bills vary by location but it can cost around $6,075 to $27,067.
These numbers do not take your insurance policy so review it and take note of your out-of-pocket costs for prenatal care, hospital stay, tests, and postpartum care. Difficult births can run over $100,000. Your insurance policy and your location definitely make a big difference.
Other expenses to think about include baby stuff for nursing and feeding, home needs like cribs and diapers, and travel needs like snuggle bags, baby carriers, and strollers.
On-going expenses to take into consideration
Once your baby arrives, the bills for the care of your little one becomes a regular thing. These includes doctor visits for immunizations, wellness checks, and other visits for illnesses; basic necessities like food, clothing, and diapers; and child care, which is possibly the single biggest budget item to enter your list. Child care costs just under $10,000 per year. But again, keep in mind that this is based on your location. Some costs might be offset by various tax credits, too, so look into it to check if you are eligible.
How to save money on a new baby
No matter your income, there are various ways to meet your baby’s needs without going into debt. Here are some simple tips to save money:
1. Baby shower presents. Have a register so that attendees can buy what you really need and avoid unncessary duplicates.
2. Family for back-up daycare. Instead of taking a day-off or paying for a nanny, make arrangements for family or friends to help out with emergency back-up daycare.
3. Borrow items. Ask friends or family with children if you can borrow items that they are no longer using. You can score big savings on big ticket items this way like cribs or high chairs.
4. Adjusting your lifestyle. Your priorities will change once your new baby comes. Review your budget to make sure the numbers add up. Consider closing the gap by downgrading in a few key areas. For example, you can start buying more generics, drive a more affordable car, or shop less and put the savings on your baby budget.