If you're expecting, we know you're excited! 😍 However, you might not be so excited about all those baby-related bills. 👶💸 According to some studies, baby expenses in your little nugget's first year of life can be between $20,000 and $50,000!
As long as you and your paycheck are prepared for mini me, the financial side of parenting will be far less stressful. 😅 Potty training and teething? No comment.
Here’s Five Fast Facts on how to budget for that bundle of joy:
- 🤱 Kiddie Costs - Just how much does it cost to raise a kid? Back in 2017, data from the U.S. Department of Agriculture revealed that parents spent around $233,610 from a child's birth in 2015 until the age of 17. Fast forward to 2022 and it's a bit of a different story. That number jumped to over $310,000, thanks to our pal inflation.
- 🧑⚕️ Happy and Healthy - Health care is one of the biggest baby expenses and those bills add up quick. Babies have tons of doctor's appointments and even if you have good insurance, you're probably emptying your pockets for co-pays. Take a look at your current health insurance plan and see if you should make any adjustments before the baby arrives. Research your plan to see what's covered and what isn't and budget accordingly.
- 🦛 Hungry Hungry Hippos - Babies are little eating machines and your grocery bills will definitely increase with a new mouth to feed. Look into formula and food brands you want to feed your little one and make room for them in your budget. Don't forget to add in the cost of diapers, clothing, and the occasional toy you'll buy in Target to prevent a full-on toddler meltdown.
- 🍼 Baby Sitters Club - Today's childcare costs are sky-high. If you're heading back to work after maternity or paternity leave, lock in your care plans. Decide whether or not you'll have in-home care or take the baby to onsite daycare, and weigh the financial pros and cons. You might find staying home (or going part-time) is the more economical decision for you and your family.
- 🎓 I Believe That Children Are Our Future - College may be the last thing on your mind when you're holding your newborn, but it doesn't hurt to think ahead. If you want to start saving for your child's college education, consider opening a 529 account. Even putting a little towards it each month as your child grows can add up to a big chunk of change. The less student loan debt your kid has, the better. And the less likely they'll wind up living in your basement!
🔥Bottom line: While you're waiting for baby to arrive, make sure you know how much income you'll have coming in. Ask your employer if they offer paid leave and take advantage of it if they do. If you'll have to take unpaid leave, have a financial game plan to help cover costs while you're out of work. Speaking of kids, head here to see what's going on with child labor lately.
Do you have a baby on the way?
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