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Budgeting for a Baby

Budgeting for a Baby

Yes, children are priceless, but raising them is far from it. Many people plan for the changes a baby will bring to their lives when it comes to free time and lack of sleep but forget to factor in how much the little bundle of joy will affect finances.

The estimated cost of raising a child from birth to age 17 is approximately $310,000. But don’t panic. You don’t have to be ultra wealthy to raise a family – you just have to make a budget and plan smart ways to get your family started off on the right foot.

  • Research your health insurance policy and your spouse’s to see which offers the best benefits in terms of prenatal and infant care. Switch to the better policy, if necessary, before your pregnancy becomes a pre-existing condition.
  • Track your spending habits and create a list of your current, pre-baby expenses. Once you see where your money is going, you’ll be able to figure how much of it you can save and put toward baby expenses.
  • Do your research by checking in stores or on the internet or ask friends with children what various baby equipment and other necessities cost.
  • Plan on your household expenses increasing after having your baby, and adjust your budget accordingly. Include everything from diapers and formula to clothing, doctor visits and medicine. Start by setting aside at least $200 extra for household bills and adjust that figure as you get a better grip on your monthly budget with baby around.
  • Act early to find child care, as many daycare centers have waiting lists. Don’t rush – do your homework and find the right one for your child and your budget.
  • Ensure your home is energy efficient. Conserve water and energy, replace old furnaces and water heaters and boost insulation to help keep utility bills as low as possible despite the bigger household.
  • Be cost-conscious about baby clothes. Accept the generosity of friends and relatives who’ll gladly pass on their children’s outgrown clothes. Hit rummage sales, check outlet stores for bargains, and shop during sales and inventory closeouts.
  • Start your baby’s college fund now. By stashing away just $50 per month, you can build up a sizable fund by the time your child turns 18.
  • Create a will identifying a guardian and a trustee of your child’s inheritance.

Whether you’re in need of budgeting tips, college savings, or overall wealth management services, UNCLE’s Wealth Management team is here to answer your questions. Set up an appointment today to help with future planning. www.unclewealthmanagement.org/

 

 

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