The first time you hold your bundle of joy in your arms, it’s the most emotional moment. But remember nothing comes for free in this world and the same holds true for your baby.
You need to be wise and prudent so that you are not caught unaware by the expenses that accompany your new born.
Here are some factors that you need to keep in mind.
Analyze Family Budget
Go through your existing family budget and cut down on unnecessary expenditures. This will provide room for new expenses.
Apart from the doctor and hospital bill, you also need to consider the cost of things required for baby’s care and well being.
These include cost of diapers, baby clothes, formula feed, milk bottles, breast pump, pram, stroller, toys, crib, car seat, play pen, nanny, ans day care among others.
Insure Child's Future
It will be wise to invest in life insurance, health insurance, disability insurance, etc. to safeguard your child’s future from any unforeseen events.
Also, budget for your baby’s education, including higher education.
Find out if there are any hidden costs involved and what all costs will be covered by the insurance that you have signed up for.
Factor-in Loss in Family Income
After the child birth one of the parents might have to give up full-time job. So while preparing the budget, remember to include loss of income due to unpaid maternity leave.
Rather than buying everything, you can borrow quite a few items, especially expensive ones (eg. stroller, car seat, high chair, kid’s furniture etc.) from friends and relatives whose kids have outgrown these items.
Buy Second Hand
To avoid the burden of returning something after using it, you can also consider buying kids’ items from eBay or second hand stores.
Practice caution and avoid buying too many toys or clothes in one size because children outgrow them very quickly.
When high value items, avoid things in only pink or blue as these colors are gender specific. Instead buy gender neutral colors like yellow or green so that it can used by the second child too.
Make Clear Decisions
After the child birth, you will be bombarded with various choices where you will need to make decisions keeping in mind both cost and convenience.
These could be related to breastfeeding or formula feeding, hiring a nanny or opting for a day care, using cloth diaper or disposable diaper, etc.
While deciding, factoring in the costs involved will be of great help.
Make a Will
Making a will generally does not feature in our priority list and we keep postponing it for future. If you don’t have one already, now is the correct time to make your will. It hardly costs much.
Also, you will need to appoint a guardian to look after your child’s assets until the child turns 18-years-old.
So keep in mind the above suggestions and plan your baby, so that you spend your time enjoying with your child rather than worrying about finances and debts.