It’s typically hard to budget for a baby for new parents. There are numerous factors that contribute to this. First and foremost, raising a baby is an expensive responsibility. As a parent, expect to spend thousands of dollars each month. In most cases, this puts a tremendous strain on your budget.
Let us take a look at what you should spend on. This includes food, health costs, clothing, electricity, and medical expenses. And if you and your partner have full-time jobs, you must find the best childcare. Finding good child care is one of the hardest things for any parent in the United States.
In fact, a study conducted by the U.S. Bureau of Labor Statistics substantiates this. The research has found that at least 56% of families with infants or toddlers struggle to find the right childcare.
What Do Most New Parents Spend On?
As a new parent, expect to spend on some of the following expenses:
Food
During the first few months, you might be breastfeeding. But that does not mean you’re off the hook for grocery shopping. You will still need to eat nutritional food to breastfeed. Once you wean your baby from the breast, you still need to buy formula. It’s costly on its own. As your baby grows, you need to buy food for your baby. According to Eat This, Not That, family meals are designed to feed around four to five people. Again, the baby food you buy has to be healthy, just like the food you buy for your own meals. That’s another cost for you. Don’t forget things such as a feeding chair, utensils, and other items you will use to feed your baby.
Medicine and Doctor Expenses
Beyond routine wellness visits, your baby will inevitably catch the flu or stomach bug. So you should have a sufficient amount of money to take your baby to the doctor. The costs usually start before giving birth. Expect to pay for prenatal care, labor and delivery, and a birthing specialist. Remember, all those expenses could add up to thousands of dollars. Connecting with doctors and other specialists early on in your child’s life is crucial for their prolonged well-being. Did you know that 16% of people in the U.S. suffer from tooth erosion? This can be prevented by budgeting for this care while they’re still young.
Clothing
Your baby will need clothing, blankets, strollers, diapers, and wipes. After every two months, you might find yourself buying new clothes because babies grow fast. Consider this rapid growth when budgeting for upcoming shopping trips.
Child Care
This will be a monthly recurring expense. Child care typically costs more if you live in an upmarket area. For instance, you might pay a nanny $20 per hour or $400 to $1500 monthly.
Do Some Research
It’s important to consider not only the above expenses but to do some research as well. Find out the usual expenses of raising a child. Consider other expenditures we didn’t mention. Evaluate each expense thoroughly and use your current income as a base.
If you feel you’re ready, go ahead and create a plan to cover those expenses without finding yourself drowning in debt. For example, you might decide to open a savings account that will cover unforeseen expenses such as medicine, prenatal care, clothing, etc. It’s always advisable to have an emergency fund. This could be an amount of money that you and your spouse put aside every month to cover certain costs.
Budget as a Collective
To cover monthly costs adequately, you need to work as a unit. Be transparent with your income, debts, and general monthly expenses. Each month, review your expenses, cut off unnecessary spending, and come up with ways to increase your income for your family. This could be doing such things as taking a second job, driving an Uber, starting a side hustle, or whatever that can help you earn multiple income streams. Because let’s face it, without sufficient income, raising a baby will be an uphill battle for you as new parents.
Choose an Affordable Daycare
As we have already pointed out, finding the right daycare is a challenge for most parents. However, that doesn’t mean there are no good daycares out there. There are plenty of them as long as you start searching early on. To get the best daycare, it is best to start looking before giving birth. Ask around, prowl the internet, and read some reviews on which daycare is the best. Eventually, you will find a suitable daycare for your baby that is within your budget.
Raising a child is an amazing experience, but it is also an expensive one. Be sure you’re prepared by considering this list of finances!