Budget for the Baby
Once you find out you're pregnant, it's important to start thinking about an updated budget. The earlier you knock out those unnecessary expenses, the better.
While your budget in the 9 months leading up to the baby's arrival should be carefully reconfigured to help you save money during this time, you also need a post-baby budget. After all, there's a brand new person in your world -- they're going to cost you a little extra!
By preparing ahead of time and finding out exactly how much money you'll need when you have a baby, you'll never have to worry about being caught off guard.
Get Your Baby Gear Ahead of Time
When you find out a baby is on the way, your first impulse may be to completely remodel your home. If you can afford this, great, but otherwise you should focus on acquiring the most important things your baby will need.
Some important items you'll need for your baby include:
- Changing table
- Car seat
- High chair
- Baby clothes
- Baby monitors
Remember, your friends and family have probably had babies at some point in their lives or may know someone who has recently. Try and find free or inexpensive second-hand baby gear to make the costs easier on your finances.
Discuss Childcare and Work With Your Partner
If you and your partner aren't sure how things will work out once the baby has arrived, it's important to discuss this now.
Who will go back to work full-time? Who will take care of the baby full-time?
Will you need childcare? If so, you'll need to add that critical category to your monthly budget. Childcare is rarely cheap, which makes it smart to start shopping around for the most affordable and trustworthy childcare in your area.
Some parents say they pay more than the cost of their monthly mortgage for childcare, so whoever works full-time hopefully has a job that can cover these expenses. Otherwise, you may need some extra help.
Look Into Tax Credits
Taking on the responsibilities of parenthood is never easy, and never cheap. That's why the government recognizes the needs of parents and offers exemptions and tax credits worth thousands of dollars each year.
Also, if you need childcare, you may qualify for savings at the end of the year related to your childcare. Take a look at estimates for the amount you'll save with only one partner working -- it's possible that it makes more sense financially for one of you to stay at home full-time with the baby.
Open a Separate Baby Savings Account
Once you know for certain you can afford all the new expenses that come with a new baby in the family, consider what's left over. Any amount you won't need each month that isn't already going into a family savings account should be placed in a new account specifically for the baby.
The money in this account can be seen in one of two ways: as an emergency fund for anything that might come up related to the baby's health and well-being, or as a starter fund for their future.
And remember, if you ever have an expense you can't afford when you have a new baby, you can always consider a quick and easy personal loan from Atlas Credit. Apply for a loan of up to $1,400 through us, even if you have bad credit! Then, you can cover your baby's expenses and pay the loan off at your own pace. Contact Atlas Credit today to learn more.