Many couples put off having children because they are worried about whether or not they are ready for the additional financial strain. Having a baby does not have to be out of reach just because you do not have millions in the bank. The fact is, there is never a perfect time to have a baby. A little bit of advanced planning and some smart decisions make it possible to have a baby on any budget.
Paying for Pregnancy
A normal pregnancy is expensive, but unexpected complications can cause pregnancy medical bills to skyrocket. Check into your medical coverage before getting pregnant. If your medical coverage does not seem adequate, consider purchasing a supplemental insurance program that reimburses you for time spent in the hospital to cover the additional cost. Take advantage of a tax-free cafeteria plan if your company offers one. You can set aside money that you know you will be using for hospital stays after delivery tax free.
If you find yourself pregnant and uninsured, do not neglect your prenatal care. Look into state and federal programs such as Medicaid to help you pay for your pregnancy and delivery. Prenatal care is so important to your unborn baby's health and should not be ignored because you think you can't afford it.
Paying for Baby Gear
During pregnancy, most new parents try to make some of the major purchases that the new baby will need when he arrives. While a few basic items such as a crib or bassinet, a carseat, and a basic infant layette are needed, many items are not essential. Avoid making small purchases until after your baby shower, if you are having one. Many of the basics such as sleepers and diapers are often given as baby gifts. Look for larger items such as cribs, in local classified ads or at thrift shops.
A carseat is one item that you should not scrimp on. Older carseats may have dated safety features and may have been in a car accident, making it unsafe to use. Look for sales online to find the best deal on a carseat and be sure to check the weight limit so you can get the most use out of your carseat before needing to buy a new one.
It is easy to save money on baby clothes by shopping the sales, shopping in the off-season, and shopping at thrift stores. Babies actually need very little. It is best to wait, especially if you are a first time parent, until after the baby is born and you have a better idea of what you will really use.
Paying for Baby Food
Breastfeeding is free and more nutritious for baby than formula. Babies can be exclusively breastfed until they are 6 months old and baby's first food can be made from scratch. Homemade baby food is much more affordable that store bought baby food and has only simple, natural ingredients without any extra preservatives.
Paying for College
Many new parents worry that they will not have enough money saved to pay for their child's college education. As wonderful as it would be if every child had a college savings account by the time he needed it, that isn't often realistic in today's economy. Concentrate on getting your own finances on stable ground before saving for your child's future education.
Pay off debt and create an emergency savings account to prepare for your child's more immediate financial future. Even small amounts of savings are better than nothing. You may be surprised at how willing grandparents and other relatives are to help out if you open a college savings account for your little one and ask them to contribute to it in lieu of birthday and Christmas presents while your baby is young.
A baby doesn't have to be out of the questions just because your budget is not picture perfect. Perfecting your finances is a lifelong process. Having a baby is something that, while it may require some sacrifices, is always worth it in the end.
