Budgeting For A New Baby: Budget Expense For Your Newborn Baby

Budgeting For A New Baby_ Budget Expense For Your Newborn Baby

Having a baby is both exciting and stressful. A baby puts a lot of pressure on you both financially and physically. Therefore, it is important to do budgeting for a baby as soon as possible.

However, you can work on your physical health, but your financial health becomes more concerning.

Being a mother of two has taught me a number of financial tricks that I would not have figured out otherwise. Budgeting for my second kid was much easier and less overwhelming than my first one.

The first ones are always the most challenging ones, and that is the peak time when you need an effective budget.

Budgeting for a baby is not easy, and the challenges are many. You may find yourself overwhelmed with questions like how much money you are expected to spend after your little one or what financial tools you should use for the same.

In this article, I will talk to you about how to get on with effective budgeting for a baby so that you have sufficient funds for yourself and the newest addition to your family.


Points To Remember

  • One of the most remarkable expenses for a new parent is the delivery itself. The cost of the delivery may differ from state to state and health insurance policies.
  • One-time expenses may include travel, nursing or feeding, and home needs.
  • Other considerations may include saving plans and the cost of child plans.
  • You should also consider having an emergency fund in case a parent decides to stay home.

Budgeting For A Baby

Budgeting For A Baby

According to studies, in the first year itself, the cost to raise a baby can run as high as $21,000, and the cost to raise a child to their adulthood may dwarf that.

While your expenses may vastly change when you have a baby, your budgeting doesn’t necessarily have to change.

If you are totally new to budgeting, I would recommend trying out budgeting with the help of the 50/30/20 approach.

Let me break it down for those of you who don’t know about this budgeting approach.

According to the 50/30/20 approach-

  • 50% of your income is dedicated to needs like bills, loan payments, and expenses like child re, formula, diapers, and so on.
  • 30% is kept for financial needs.
  • 20% is dedicated to savings or payments for toxic debts, like payday loans or credit card balances.

The split is the ultimate goal. At times you will find your needs exceeding 50% of the income, which is very common when it comes to middle-income families, mainly the ones that have a child that goes to daycare, and that is OKAY!

Exceeding the limit sometimes is not wrong. The goal is that you are at least keeping track of your spending and trying for improvements.

The 50/30/20 budgeting calculator gives you a better idea of your current budget breakdown.

Once you are done establishing a baseline of your spending, keep track of your progress each month.

Steps For Budgeting For A Baby

FramSteps For Budgeting For A Baby

As I said earlier, budgeting for a baby is not easy, and it’s completely okay to mess things up initially. I was completely drowning when I had my first kid.

You only need to give yourself some time and a little financial help.

Here are the steps you need to consider to create a seamless budget for your little one.

One Time Expenses

In this case, the first priority is always the baby. This means you have to start from scratch in multiple areas like strollers, furniture, and cribs. There definitely is the medical bill, like giving birth to a baby in the United States.

You will slowly realize that this is one the hardest to pin in a worthy way.

Medical Bills

In the United States, an average new parent covered under the insurance may expect to pay at least $14,000 for the whole labor and delivery process.

Vaginal deliveries may cost around $7,000 in Arkansas to $17,000 in New York.

You must keep in mind that the routine birthing costs may vary depending on your insurance coverage and location.

Baby Stuff

A baby’s one-time purchase may vary, just like the medical costs, but for fairly different reasons. This category will fluctuate depending on the parent’s wants.

Travel Needs 

If you have a baby, you will definitely want to go out with them for a walk in the evening or to the clinic. You will need a stroller, a baby car seat, a diaper bag, and a baby carrier.

These things vary in cost; therefore, you need to spend on them accordingly.

Home Needs

You will not be tending to your keep every minute of the day. Sometimes, you will need some time for yourself and have to keep the baby occupied by themselves.

Playmats, portable swings, or bouncy seats are good options for that. There are also other requirements for your home when you have a baby, like the baby monitor, crib mattresses, blankets, etc.

You can buy them all new or get them at a much lower cost from the share and swap groups you may find online.

Nursing And Feeding 

The feeding costs for your baby will once again vary depending on many factors. If you are staying home, you can cut down on the expense by breastfeeding your baby before they reach an age where they need smaller chairs and dishes.

Ongoing Expenses 

Once you become a parent, the regular expenses needed to take care of your little one start to kick in.

These are some of the costs that you may want to include while budgeting for a baby:

Child Care 

If you and your spouse are working parents, child care is the biggest budgeting item on your list.

The costs for child care will vary depending on your location, the age of your baby, how much care you are in need of, and the type of care you are using.

Food And Other Necessities 

Unless you are breastfeeding your baby, food for the baby will take up a major portion of the budget. Once your baby starts eating solid food, you may expect the expenses to go up even higher.

Diapers And Clothes 

The cost of clothes and diapers may vary depending on the age of the child and the types of clothes or diapers that you are looking for.

Children’s clothes look very pretty; however, they can be pretty expensive, so be a bit decisive while purchasing them.

Financial Tools For Budgeting For A Baby 

Financial Tools For Budgeting For A Baby

Here is a list of budgeting tools that you may want to consider while budgeting for a baby:

The Bottom Line 

Children may be one of the best gifts that you receive, but they are expensive too. While budgeting for a baby, make sure that you take effective steps that support you financially, not only in the present but also in the future.

Invest in good health insurance, which will, in turn, help you with the hospital bills. Try to cut down your expenses from here and there to spend on the needs of the baby.

Just be a little alert and responsible, and the entire process will turn out to be as smooth as it can be.

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Upasana is a budding journalist who has a keen interest in writing. She considers writing as therapeutic and is most confident when she writes. She is passionate about music, movies and fashion. She writes in a way that connects with the audience in a personal level. She is optimistic, fun loving and opinionated.


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