Start preparing today:
Bundles of joy tend to cost bundles of cash. Budgeting and money management become more challenging when life becomes all about your family's needs. If you are considering starting a family, your priorities and responsibilities will expand and change. There’s nothing like a baby to reinforce the fact that even happy events can derail a budget. A recent U.S. Department of Agriculture study indicated that middle-class families will spend between $270,000 and $393,000 per child between birth and age 18. And that doesn’t include the cost of college. Here are some tips on how to financially prepare to have a baby.
Update Your Budget
Having a baby means an increase in doctor’s visits, time off from work, baby-related expenses, food, and potentially the additional cost of child care. Make sure you plan for this time off, understand your employer’s policies, and prepare in advance for the lost income and increased expenses. It’s a good idea to project these expenses and your income and update your budget before you start trying to get pregnant.