It can be quite an exciting time for those expecting the arrival of a newborn baby in the near future. Although undoubtedly a new child will bring moments of joy for parents, it can also mean dealing with future expenses which can be financially challenging for many. Therefore, it is important to start making a budget for the new baby. Here are a few expenses you should be considering.
One of the first expenses you will need to deal with is your medical bills related to giving birth. It usually costs several thousand dollars to have medical professionals assist in the birthing process. Even with insurance many times it can cost upwards of $14,000 out of pocket. This can vary based upon your geographic location.
You now have a newborn infant to care for which means you will most likely want to make it easy for you to travel around with your child. This will mean purchasing things like a baby stroller and child car seat. If you want to save some money you can try to find used items for sale.
Items for home
Some basic needs for a newborn at home will include a crib, mattress for the crib and basic bedding. You may want a rocking chair, changing table, some type of baby monitoring system and a diaper pail. The child can be entertained with items such as a portable swing set, a play mat, and various other toys.
Nursing and feeding needs
There are some considerable costs associated with feeding and nursing a newborn baby. Your costs will depend on if you are a stay-at-home parent who can breastfeed your child or not. If this is your situation, the costs can be quite minimal at first. However, if you have to store your breast milk you will need to purchase bottles with nipple tops and cleaning equipment appropriate for this purpose. You will also need a breast pump of some sort.
If both parents are working, then you will have to look into paying for some type of childcare. Usually, this is the largest expense to include in a budget for working parents. You can expect to pay tens of thousands of dollars per year for nanny and babysitter services. However, it is possible to mitigate some costs by asking for favors from friends and family.
Another significant cost will be clothing for your newborn. For the first two years, parents can expect to pay anywhere from $670 to $1,110 for clothing for an infant, according to the USDA Cost of Raising a Child report.
Once your child starts to require more solid food you can expect to spend around $100 per month for food.
It is advised to have your child see a doctor around six times per year for routine checkups, evaluations, immunizations, and other needs. Costs will vary according to your insurance policy.
Have an overall financial plan
Of course, expenses related to having an infant child do not exist in a vacuum. You will have to balance these costs along with your regular living expenses, such as rent, mortgage or car payment. Having a comprehensive financial plan will be essential.