Money Management Tips for New Parents

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Each and every new baby is a little miracle. A bundle of joy, deserving of all the love, care and attention in the world. Proud new parents can often be heard saying the same thing; that they wish to give their child the best of everything, and make their young lives as bright and rich with possibility as they can.

The truth, however, is that having a new baby costs money. And whilst any parent would quite rightly wish to provide their child with everything they can, sometimes it’s the case that doing so simply isn’t financially feasible.

Surprising Figure

According to a survey conducted by Baby Centre, the average spend during a baby’s first year is almost $10,000. This amount will cover your medical expenses, as well as all the necessary items for baby. The results of the survey also showed that a large percentage of new moms were surprised by this figure, saying that it was a lot more than they had expected.

Savvy Saving

Perhaps the most important thing that was found from this survey is that many parents ran into unexpected costs – such as having to buy formula when their breastfeeding plan didn’t work out. These kinds of costs are always going to crop up, no matter how carefully you plan ahead, as babies just aren’t as predictable as we’d like them to be. There’s only one way to absorb these unplanned costs, and that’s by ensuring that you have a nest egg to which you can turn at times of need. But of course, sometimes saving for a baby simply isn’t an option.

Reusing Old Items

For parents who aren’t able to save before their baby arrives, there is another way to significantly reduce the cost of having a new child. This method is particularly appropriate if this isn’t your first child. Reusing items can be enormously beneficial, as it means not having to spend money on brand new things. So if you’ve already had a baby, make sure to hang on to your old stuff in preparation for your second little one. And if this is your first child, turn to family and friends for assistance. Look out for items such as the Britax Travel System, which is sturdy enough to withstand the test of time. Clothes are another item which are perfect for reuse, as your baby will grow out of them so quickly that buying new is almost like throwing money away.

Check Your Insurance Policy

Many parents have faced unexpected costs by not making sure their new baby is adequately covered by their health insurance policies. Check with your provider before baby arrives, and weigh up the benefits of state insurance vs. employer insurance. Being fully informed about this kind of paperwork is a great way of getting ahead of your costs.

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