The addition of a little baby to the family is a refreshing experience that brings an abundance of happiness and joy to a couple’s life. As amazing as that sounds for new parents, it is important that you be aware of the financial changes that you will have to make if you decide to have a baby. Most parents fail to pre-plan finances and have to rely on big loans to cover their needs. If you are planning to have a baby, it is very important that you discuss and sort out your finances, or else you will be depleting your savings and will be depending on loans for a long time.
What are some major expenses that I will have to pre-plan? Well, there are several. Keep reading to find out.
Major Expenses You Should Start Saving For From The Very Beginning.
1. Pregnancy and delivery expenses.
This is a one-time major expense that you will face. From prenatal care to childbirth, you will be stacked with hospital bills and expenses. Fair Health estimated the cost of vaginal delivery to be USD 5,000 to 11,000 and C section to be USD 7,500 to 14,500. This includes prenatal and postpartum care as well. It’s quite a huge number, but it’s just one difficult expense that you will face.
2. Baby gear.
The first year of the baby’s arrival is the heaviest on the pocket. A baby needs all those things, and you cannot go around it either. One of your baby’s requirements is baby gear which includes a baby cot, convertible car seat, capsule, stroller, walker, rocker, etc. Although you cannot go around these expenses, you can always choose cheaper options. It is advisable, though, that you get high-quality gear because it is reusable for the future and safer. You can find affordable and premium quality options at maxi-cosi.co.nz.
3. Education.
In a Consumer Expenditures Survey held in 2015, it was estimated that an estimated $284,570 is spent on a child’s education without including a college education. This data is from 2015. You can only imagine how much the figure is in the present day. Although this is a gradual expense that you can save with time, it is a major financial factor in having and raising a baby.
4. Healthcare and insurance.
In California, the average health insurance cost for a baby ranges between $320 to $400 per month. This means a rough estimate of $4000 to $5000 per year. There are additional expenses for healthcare that insurance does not cover. In other words, healthcare is expensive, and you need to consider having emergency savings for healthcare as well. This is an additional cost that parents must discuss with one another before having a baby.
5. Furniture and other living costs.
Lastly, from the child’s birth to their teenage years, you will have to update your child’s furniture, room settings, etc. At birth, you will have to buy a crib, cradle, high chair, and room décor. As the child grows, you will need to switch from a crib to a bed and renovate the room as well. The estimated expense of just renovation is $7,800, which does not include changing furniture. Therefore, another surprise expense that you will have to pre-plan.
