Baby budget: Financial Planning Is Key When Having A Baby

So I hear you're having a baby.

If you've recently discovered that you're expecting an addition to the family, get used to hearing that from all your family and friends. They'll call to congratulate you. They'll call to offer their support. They'll call to ask how you're feeling.

But most of all, they'll call to tell you how much your life is about to change. Keep in mind, however, that having a baby is like any other major change in that planning ahead makes the transition a lot easier.

In planning your personal finances for the baby's arrival, there are several issues you need to consider. It's time to get out a pen and paper and work out a budget that you can use once you've brought the baby home. Remember, these figures are in addition to your regular weekly and monthly bills.

First of all, a new baby means an extra mouth to feed, as well as diapers and baby clothes. Also, you'll find that miscellaneous expenses, including paper towels, tissue, and detergent, will all increase. Even your utility bills will go up because you're home more often. You're probably safe if you figure a minimum of an extra $200 a month, although you may have to make some adjustments in either direction as time goes on.

Additionally, there are some one-time purchases you might want to consider, including a crib, car seat, monitor, and baby swing. Of course, many expectant mothers receive these as gifts at a baby shower.

If both parents plan to work after the baby is born, start calling daycare centers as early as possible, just in case you have to get on a waiting list. Daycare costs can range from $40 a week for a program in someone's home, to $125 a week or more for an established center. Ask friends who have children to recommend a good center, and call the state agency that regulates daycare centers to get their rating. Just don't delay. It's important that you plan for this new weekly cost in your budget.

Another important area for your post-birth budgeting is health care. How much will your health insurance premium increase by adding the baby? Make sure you discuss this with your employer to find out what the family rate is, and specifically, how much more will be taken from your paycheck every week.

Once the baby is born, you can plan on an occasional visit to the pediatrician, both for regular check-ups and minor illnesses. Some parents get very lucky and experience very few health problems with their newborn, beyond the minor colds and infections all babies get. Other infants need more attention from their pediatrician. So, it's really very difficult to carve that number into stone. However, depending on your deductible or copayment, you may need to budget an additional $200 to $300 a month just for the baby's medical care, at least for the first few months.

Now for the good news.

Almost every expectant parent, especially those expecting their first child, worries about money. Most discover after the baby is born, though, that it isn't as hard as they thought.

Having a baby forces certain changes onto the parents, typically resulting in a less expensive lifestyle. You don't go out as often for dinner or to a movie. If you think about it, people who don't have children waste a lot of money filling time and avoiding boredom. Rest assured: you'll have no problem finding something to do once the baby arrives.