Congratulations on choosing to experience one of life’s special joys – having a baby. If you’re reading this before conception, your proactive stance will take some of the scare out of the unexpected; planning ahead for such a life-changing arrival will also help control costs. With a minimum of 9 months to get ready, you’ll need to consider making changes in your living space, work schedule and finances, while learning more about what it takes to care for a baby.
Prenatal doctor visits will cost a minimum of $500. A typical hospital delivery will set you back between $14,000 and $20,000, depending on the type of birth; while a home birth midwife delivery costs around $3,000. Raising that child to age 17 in the U.S., according to the ‘experts’, will cost a whopping $249,180. To put that into perspective, at the other end of the scale are couples living in impoverished countries where the cost of raising a child to adulthood costs a mere $16,500.
The difference between the American dream and much of the rest of the world is almost too hard to believe. But it doesn’t have to be that way. Americans can lessen the gap by being proactive about how they spend their money. With a little conscientious effort you can provide quality care and save money. Here are some ways:
Make a Workable Budget
Begin with a plan; preparing a reasonable budget before you set foot in a store will help keep costs down. Create a list of the things you will need; ask friends who have recently had a baby to help you. In writing down your hopes and expectations, you will begin to prioritize what’s important and what you can probably do without. The impact on your current budget will be easier to see, as well, if you put it down on paper.
Make Insurance Mandatory
When you consider the cost of prenatal, hospitalization and delivery, it’s easy to see why insurance needs to be high on your list of essential expenses. This is one that needs to be put in place before you conceive, because some insurance companies won’t cover an existing pregnancy. It is important to make sure your doctor and hospital accepts your insurance and that you understand how coinsurance and deductibles work. While many plans cover the entire cost of pregnancy and the birth, others have exclusions or may only cover a fraction of the costs. Understand the specifics when choosing an insurance carrier.
Consider Second-Hand Furnishings
More and more charities are opening resale outlets that sell gently used furniture. This is a great way to stock your nursery with the necessary crib, changing table, rocker, etc. If you’re on a really tight budget, you may have family or friends who will loan you larger items.
Cut the Cost of Supplies
Discount retail outlets, like Sam’s Club or Costco, are able to sell essentials to new parents, like diapers and formula, at lower rates than standard retail stores. Take advantage of coupons and sales. Although many coupons require multiple purchases to get the best discounts and may stretch the monthly budget, you will see substantial savings. When you take into consideration all that a baby will need (for example: an average 10 diapers a day/300 a month for approximately $100 per month), finding the best price can mean considerable savings.
Additional Expenses
With the vast amount of things needed to care for a child, you may incur additional costs that need to be
considered.
- Lower income during unpaid maternity leave or if one parent stays home
- Insurance for the baby
- Childcare services
Like all the important things in life, changes are bound to happen. No one has a crystal ball that can predict to the exact detail the needs of raising a child. The budget that you prepare will need to be kept up-to-date and revised as needs change. If you spend more than you projected in one area, another item will need to be adjusted down. If you spend less on an item, the extra can either be put into savings or used elsewhere.
Noreen Ruth writes for ASAP credit card blog and several popular finance websites. She is interested in educating consumers about using credit responsibly and about legislative action that will affect their ability to borrow the money they need. She has contributed hundreds of articles to various online sites that provide content to educate consumers on credit, top credit cards, debt services, loans and other finance topics.
Save Your Cash is an
This article is full with good advices cause raising kids today is not a walk in the park