Having a Baby

If you're expecting or you have a new baby - CONGRATULATIONS!

If you're planning your budget in advance of having a baby - EXTRA CONGRATULATIONS to you for the wise foresight.

Everybody knows that growing families cost money. When it comes to expenses related to pregnancy and a newborn baby, different parenting choices can be more or less expensive. While some parents want to set up a deluxe nursery and get shopping for every modern gadget, others choose a more frugal and minimal approach. On this page when we list the common expenses it is intended more towards those with the nursery and the gadgets, for the frugal parents we offer some helpful suggestions at the bottom of the page.

Sometimes things don't go exactly as planned and they can be more expensive. Your pregnancy may take a turn for higher risk which can bring with it unexpected expenses starting with the necessity for earlier leave from work than planned, prolonged bed rest or hospital stays. Some mothers intend to exclusively breastfeed but are unable to, necessitating the purchase of formula and all of the related bottle-feeding equipment. Premature birth can throw a number of wrenches into any family's plans and strain the finances. Now, of course, the last thing we want is for you to fear the most alarming worst-case scenarios, of course, the odds are in your favour that everything will go beautifully and most of your plans will sail through smoothly, but bear in mind when you're budgeting for a new baby that unexpected events may complicate your plans and that this is a very important time to put aside an extra savings cushion to cover expenses if things don't go exactly as planned.  Hope for the best but prepare for the worst

There are four main categories of new baby-related expenses:

1. One-Time Purchases
2. Pre-Pregnancy/Pregnancy
3. Birth
4. New Baby comes home and beyond...

There are so many factors that determine how much having a new baby will cost you. Some new parents really enjoy buying all the new baby gear (which is fine if you can afford it), others fall into the frugal living side of the spectrum (worth learning about if money is tight) and are surprisingly good at eliminating and reducing common costs. Having a baby will undoubtedly create more costs though, in large part dependent on your parenting choices and preferences.

Having a baby is often less expensive for those who already have other young children and saved many of their things. Experienced parents have also learned that we don't need to buy many of the things for young babies that first-time parents overspend on. An addition to the family, especially a baby always costs more money in one department: laundry!

First-time parents have a harder time budgeting for a new baby because they often overspend on baby gear and once the baby arrives there are a whole set of new expenses that they didn't have to deal with in an adults-only home If you're a first-time parent who would like to avoid overspending when preparing for your new baby, we've provided links to further information on this subject at the bottom of this page.

As mentioned, food, diapers, extra laundry, clothes and furniture will be extra costs that need to be budgeted for. Don’t forget to check your insurance coverage. 

Here are the main categories of new baby-related expenses broken down:

1) One-Time Purchases

• Car seat: many hospitals won't let you take your baby home until you've passed a car seat inspection. Car seats expire after a few years, so be wary of used ones or hand-me-downs until you've verified that they're still valid for the duration of time your baby will need one. A car seat should be purchased or acquired before your baby is born.
• Furniture (crib/mattress/sheets, high chair, storage units)
• Stroller
• Baby Carrier(s) 
• Baby Monitor
• Baby First Aid Kit
• Diaper Bag
• Bath towels, washcloths 

2) Pre-Pregnancy/Pregnancy

For parents with fertility challenges the Pre-Pregnancy/Pregnancy phase can cost thousands, for most people this is not a considerable expense. Some mothers work until the last weeks of their pregnancy, others lose income earlier due to complications in the pregnancy. With the understanding that there are an immense array of extremely different circumstances that families face, here are some common Pre-Pregnancy/Pregnancy expenses to consider budgeting for:

• Prenatal supplements
• Maternity wear
• Lost wages if the mother was working
• If you've adopted or used fertility services your pregnancy expenses can be quite a bit higher, similarly if your pregnancy is higher risk and requires special care
• Lost wages often for both parents during labour, delivery, and recovery
• Medical expenses if you are not completely or partially insured/covered
• If you plan to use the services of a midwife and/or doula who will provide prenatal services, this should also be budgeted for.
• feeding items such as bottles, pump, storage bags etc

3) Birth

• Anything medical about the birth and related treatments of mother and baby that are not covered by health insurance in regions where this applies
• Hospital parking (it can be horrifically expensive, look into it where you plan to birth, budget accordingly)
• Takeout foods if the hospital food isn't palatable
• Childcare/Pet sitting/House sitting while you're away from home
• If you plan to homebirth budget for the necessary equipment

Bringing Baby Home & Beyond

• Formula (even if you intend to breastfeed, just for the budgetary idea in case it doesn't work, if you don't need it, you have a bonus wiggle room in your budget!)
  a basic set of toys (for crib and bathing unit)
• Diapers
• Identification for baby in regions where there are registration fees
• Baby toiletries such as shampoos, diaper creams etc
• Say it again: LAUNDRY!

Budgeting for Baby - Ongoing

Monthly costs:

• Baby formula, baby food
• Diapers, wipes
• Lotions, shampoos, soaps
• Did we mention laundry yet?

Extra Costs:

• Will the baby need child care, at what age, and what cost?
• Portrait photography
• Parental sick days, days off work
• Childproofing accessories such as baby gates, cupboard locks etc.

Frugal Ideas - New Baby

There are many ways to avoid spending unnecessarily where a new baby is concerned. In North America, the mainstream ideal seems to suggest that having a new baby means we need to set aside a fancy nursery filled with new matching furniture, every new-fangled toy and gadget, and that new baby = new stuff = $$$$

There are some people who choose to buck those ideals altogether and find ways to avoid spending even close to a fraction of what that mainstream ideal costs. Some of the things they do include the following:

• Choosing to purchase anything used they can start with maternity wear, then baby furniture, strollers, baby carriers, baby clothes, toys, and even cloth diapers.
• Newborn babies do not actually need toys or stimulation, most babies are basically uninterested in toys for the first 6 months of their life. Frugal parents know their babies will enjoy a spoon and a bowl as much as any toy and don't overspend on gadgets their babies don't need.
• Cloth diapering can be expensive at the onset as well, often it's a few hundred dollars to get enough diapers to full-time need and don't forget laundering. It comes down to the cost vs benefits relation that best applies to you. 
• Cloth wipes with water are not only cheaper than buying disposable wipes, but they are also often gentler on baby skin and less likely to contribute to rashes. Simple baby washcloths work well.
• Much of the baby furniture people purchase is actually optional. For example, a changing pad laid on a bed is an inexpensive alternative to a changing table. In Finland, one of the countries with the lowest rates of SIDS in the world, newborns sleep in simple cardboard boxes close to their parent's beds rather than fancy rocking bassinets. Much of the world's parents live without spending a fortune on newborns, you don't need as much stuff as you may think you do!
• Network with other parents to exchange hand-me-downs. Pass what your own baby grows out of to a baby slightly younger, unless you intend to have more children, then save those clothes to save even more money next time.
• You do not need to buy jarred and packaged baby foods, they can be convenient when travelling or a busy day of errands, but it's easy and MUCH cheaper to make baby food yourself.