Life is a journey that is filled with twists and turns. Having a child can provide you with more than your share of these. You will consider many different factors when you think about having a kid, most of them will be personal, about your time, availability and temperament for parenthood. One of the last things you factor in is often the financial impact that bouncing new baby will have on your life and your relationship. That is how it was for me and I wanted to share some of the ways I have managed to handle the cost of having a baby. Hopefully you will be better prepared than I was for reading this. At the very least it should provoke discussion between couples, so that there is a better understanding of the burden that is headed your way.
Don’t Go Overboard With a Room For Baby
So you have made the decision or the decision was made for you, that you are having a baby. Now there is obviously going to be a period of time, while the baby develops, for you to plan out everything you need to do to prepare for the arrival of your son or daughter. Many couples decide that they need to build a full fledged baby room. Often times this comes in the form of remodeling a current room into a baby nook. Many times parents can get carried away with this sort of thing. Of course you want your child to have a happy environment to exist in, that has been made safe for them. You don’t need to construct a whole new room. The costs of construction can quickly get out of control if you aren’t careful.
Prepare for Hidden Costs of Kids
You are probably aware that soon, you will be adding diapers and other baby related products to your weekly budget, but you had better realize that your regular household utility bills are going to be going up and they probably won’t come back down until your kid heads off to college. Your electric bill will rise because of the increased electrical demand. Another increase will be in food. At first there may be very little increase, because you have decided to breast feed your child. Eventually, your child is going to be weaned off of this form of nutrition and they are going to be looking for other sources of nourishment. The cost of feeding your family can be significant. There are a few simple things you can do to cut down on those bills. The first thing is to switch to generic brands for most things. You can save up to fifty percent on many items, that are just the same. Another way to save money is to become an active coupon user. You will not have to devote your life to it, to see some significant savings, and to become more aware of what is on sale and where your food budget is being spent.
Daycare A Necessary Evil
Before I had kids I never understood this aspect of childcare completely. You pay this fee every week. Even if you find the most reasonable daycare in the world, this expense is going to be costly. Depending on where you are located geographically this price will vary. In my state the average is approximately one hundred and fifty dollars a week. That is about five hundred dollars a month so that you know your child is in good hands. That is $7800 a year that you are shelling out in childcare. That is per kid. It is no wonder that more and more families are choosing to have one person either work from home or not work at all to take care of the kids and save in daycare costs. This is at least a subject that should be breached as you prepare for the wonders of parenthood.
Having kids you’re just going to have to accept the fact that there will be costs that you haven’t thought about. One of them is going to be healthcare for your child. Even if you have complete insurance there are going to be co-pays every time your child goes to the doctor, needs a prescription, or god forbid, something worse happens that requires continual care like diabetes. It is a wise move to think about starting a Health Savings Account at your bank or credit union. An HSA will allow you to put aside funds to help pay for medical treatment. It is better than a regular savings account because you are allowed to contribute money to it, tax free. That in and of itself will allow you to save money, but you will have the added peace of mind that your child’s illness won’t destroy your weekly budget.