How to Budget for Your Baby
Even though it’s still a few months away, we’re counting down the arrival of our second daughter this winter. Having gone through this a few years ago, we’re not as stressed with getting ready. Becoming parents has been a wonderfully big change in our lives and we’re eager to see what will happen next as we become a family of four.
Speaking of finances and family, I’m excited to mention that Daily Finance interviewed us for their new Lifestage Lesson series about how we prepared for our first baby and what we’ve learned for our next one. The team spent the day at home and getting a close-up view of how we manage. Come check us out in the video!
If you can’t see the video above, here’s the direct link
Why Have a Baby Fund?
What expenses can you expect? Every family is different, but here are some bills we’re expecting for our upcoming arrival:
- Hospital Bills: Our insurance changed with this next child, so we will be having a higher hospital bill. The good news is that our OB appointments are cheaper this time around, so we aren’t feeling too squeezed.
- Baby Gear: Though we plan on having all the essential ready, we want to have some buffer in case we’re misisng anything (every baby is different).
- No Work for a Month: Based on the last time around, I’m estimating that I’ll be away from work for about a month.
There’s no way we can anticipate every expense, but we have some peace of mind knowing that we have a system in place.
Tips on How to Save for Your Baby
You can get more details in the video, but I just want to highlight some tips to help you get ready for the arrival of your little one.
- Start an Automated Savings Plan: For us automated savings is a wonderful solution to not only keep us on track for our goals, but it saves us time. We’re using Capital One 360 to build our fund.
- Let Your Network of Family and Friends Help: It does take a village to raise a child, so welcome help whenever you can. We were grateful when loved ones offered their talents and helped us get ready for our little one. Several friends contributed to preparing the nursery including painting, decorating, and even giving handmade art pieces.
- Examine Your Work Situation: Childcare can be a huge expense, so sit down before the little one arrives to see what would be best for you and your family. Being self employed we had to look at whether I could finish my work while having her with me.
Thoughts on Savings for a Baby
Whether or not you start a baby fund separate from other savings, the important take away is having savings can help you with this big transition. You can focus on your bundle of joy instead of sweating over the finances.
