This post is inspired by some exciting news I have been waiting to share with you all. We’re having a baby this summer! Baby Dough is due July 2019. Naturally, with a new addition to our family, we’re going to have to make some big changes to our life. One aspect of that includes making some adjustments to our budget. I figured as my husband and I are thinking these things through for ourselves, why not share with everyone? Here are just some ways how having a baby changes your finances.
From the start of a pregnancy through the birth of the baby, the mother will see an increase in her medical costs. The exact amount of medical expenses incurred differs per person depending on the health insurance plan they have, the doctor(s) they see and their specific health situation (i.e. if someone needs medication to treat certain illnesses or if they are high risk, etc.).
Aside from the increased cost of medical for the mother, after the baby is born, the cost of health insurance will increase when you are required to switch to a family plan to ensure the child is insured, as well.
Having a baby usually means redoing a room in your house to become that baby’s nursery/bedroom. For us, that means painting and buying all new furniture and accessories. If you’re lucky enough to have a baby shower, maybe you will register for some or all of the things needed for the nursery; however, it is likely you will end up having to purchase at least some things for the nursery yourself. Some items I can think of off the top of my head for the nursery include: paint, rug, crib, bookshelf, small hangers, wall décor, curtains, sheets, blankets, changing table, dresser and plenty more.
We are fully expecting to increase our grocery line in our budget when we go from a family of two to a family of three. Whether its formula, baby food, snacks, wipes, diapers (depending where you buy them from), lotions or whatever, having a baby will require additional monthly purchases that you certainly weren’t making before.
From what I have heard, people will buy your child tons of clothes. That may be true, but I think as a parent, you still want to do at least some clothing shopping of your own for your child too. Babies are also constantly growing, so you can imagine that you will need to switch from one size to the next pretty quickly. Another thing that tends to happen is the clothes tend to be ruined more frequently than an adult’s clothes. This means even more new clothes to buy.
If you decide you want to help pay for your child’s college tuition, the sooner you start saving, the better off you will be by the time they are ready to go to college. You will want to start setting aside money as soon as possible and depending how you decide to manage this cost, you will either be setting money aside weekly, monthly, quarterly, semi-annually or annually.
Not everyone has the option to, or wants to, not go back to work after they have a baby. For these people, the cost of childcare becomes a very large part of their budget. The average cost of child center care throughout the United States ranges from $5,307 per year in Mississippi to $20,415 in Massachusetts (per Child Care Aware of America). This is a massive financial adjustment.
Obviously these are just some of the many, many ways your finances change when you have a baby. BUT from everything I have been told, kids are totally worth all the money they cost you, so here’s hoping ;).