‘Children are priceless.’ Whoever voiced that never had any! Or maybe I read it wrong. Raising a child will cost you thousands and thousands a month. Maybe even more. It hinges on what you can or is capable of spending. How do you plan and build a fund for your little ones’ expenses while providing your child with everything they need to flourish without sabotaging your financial security? The key is getting your baby budget set up, start and do the best you can before the due date arrives. Let us list the essentials you’ll need for your newborn and also give you some tips on how you can afford them.

Many new parents buy more than what is actually “needed.” You might want a nice rug, a cool swing or chair, or some cute pictures to hang around the nursery. It’s all fine, just make sure you buy these things after budgeting for food, medicine, and diapers.

Essentials need NOT be expensive at all. 
They need to be functional and reasonably priced. Research is key to staying well within your budget. 

Financial Planning Before Baby Arrives

1. The Dreaded Labor & Hospital Cost

Surprisingly and often astounding is the cost of giving birth. The cost of giving birth completely depends on your location and insurance. Plan in advance. Check with your hospital and doctor on the costs and options available. In some places, you can select your preferred payment plan in advance. This will include all costs for birthing your little one. As always do research.

2. Nursery Cost & Other Home Needs

The cost of furnishing a nursery varies the same way the cost of furnishing your bedroom varies. Are you buying from a boutique? A local store? A sale? You can also if needed get your hands on some hand-me-downs to save on costs. Try freecycling sites to keep costs low. 

3. Setting Up A Nursery Cost

The price or costs can vary. You can do the whole nursery in under a lakh or decide to use hand-me-downs or Freecycle groups to set up. 

4. Ongoing Cost For Childcare

Keep in mind some things will always cost money, though. Food and diapers can’t be shared, not the same as clothes, toys, and some baby care equipment. Same with the medical cost and, depending on the age and type of childcare.

Food and Formula, Clothing and diapers, Health care for baby, Childcare eg nanny, Other things like toys or learning aids, Includes personal care items, entertainment, and reading material.

Recurring Monthly Expenses To Budget For

1. Baby Clothes & Expenses

Despite using less fabric, baby clothes usually can cost the same as grown-up ones, and at times even more. Your little one will outgrow his or her onesie quickly. However, some baby clothes do not cost much. Again an online search can help. There’s no point in being picky or stocking the closet with designer outfits.

Or you can ask friends and family members for their old baby clothes. Hand-me-downs are not bad and have been around for ages. Freecycling is a newer concept but serves the same purpose more or less. The point is to reach out and ask and you can or may receive!

2. Nursing & Feeding Expenses

Breastfeeding is the best for a baby. According to doctors breastfeeding not only protects against illnesses like pneumonia, diarrhoea, and asthma, but it also helps baby and Mama to bond. Breast pumps are a blessing for working moms, as they can pump milk and set aside, so you can bottle feed without any hassle. Some mothers may be unable to breastfeed due to many reasons. That means bottle feeding, it can be convenient especially if you have no other choice. The formula can up the costs but if you have budgeted right you will be able to give your baby the best nutrition needed for their growth.

3. Child Care & Baby Sitting

These prices vary by country and location. Options are having a relative or close friend watch your child while you’re away. If you’re a couple, one of you may want to stay home depending on how much income you can sacrifice. Maybe work from home or freelance. Hiring any help will depend on the country, the location, and the services available.

4. Medical Costs and Health Insurance

Some of us grown-ups manage to go years without seeing a doctor and huge medical bills, but infants need regular doctor visits to make sure they’re thriving. Depending on the need you can choose to pay per visit or take insurance. Whichever works best.

For insurance, you can contact your insurance provider and discuss options to insure your newborn. Having a baby is not cheap but with insurance, you may be able to control what you spend for the little ones’ regular and timely doctor appointments.

5. Life Insurance

If this is your first baby, this may be the first time you’ve ever considered life insurance. Many of us have life insurance, which you can purchase from a well-known or reliable provider. Ask yourself this: “If something were to happen to me tomorrow, how will my child survive?” Purchasing life insurance can help answer this question. You can rest assured knowing, at least, your child’s needs will be met.

Saving for Your Family’s Future

Right now, your main worry is providing for your newborn and making sure you’re financially secure. In addition to the new expenses, you have to ensure you put something away for the future. Investing or saving using banks can help. Do some research, see what you can do and how best you can do it. Take baby steps if needed but get it done. This will be a huge relief factor for you in the days to come. Also always focus on three saving terms short-term, mid-term, and long-term savings plans or options. More on this can be found online and gives detailed information on programs available for you to start or continue saving. 

 Follow Ignatius Deepak Stanley