For such a small person, a baby can have a massive impact on your bank account. It’s important to scope out every possible cost in advance as you don’t want anything jumping out at you when you’re vulnerable and under pressure. Here’s a few things you might need to consider:
Utility Bills: As a rule of thumb, the baby should be wearing one more layer than you. But often it’s necessary to jack up the heating of your house just to make sure. Depending on the time of year, this can have a serious effect on your utility bill.
Take Out Meals: When you’re constantly sleep deprived and focussing on feeding your little human every couple of hours, you’re going to forget about what to feed yourself. Fast food is convenient and easy, but also expensive.
Time Off Work: If you’ve ever heard of the term opportunity cost, this is what we are talking about. Aside from paid parental leave schemes, ever extra minute that you take off work is an effective expensive. Sometimes this is hard to avoid, babies get sick and need unexpected attention. Regardless, this is something you need to take into account when forecasting your cashflow.
Doctor’s bills: First time parents often find themselves at the doctors much more than expected. Some of these expenses fall under insurance, but insurance won’t be able to handle all the miscellaneous medical expenses.
Clothes: Most people are ready to buy clothes for their baby. But what some people forget is that babies grow.. and they grow fast. In with the new and out with the old. Clothes expenses will be often and they won’t be cheap.
Daycare: You can stay at home to take care of your kids, but that’s costing you as you can’t work. The other option is childcare. This can be in the form of nannies, au pairs or daycare programs. These different options come with different costs and these are things to watch out for when you budget.
The Cost of Lost Sleep: Losing sleep is nothing new. We do it all the time and we know it’s a reality of having a baby. The real cost, however, is how it affects your daily decision making and activities. Maybe you’ll decide to get fast food, skip the gym and take that extra day off work. These decisions can hurt you financially, so be prepared.
PreNatal Costs: The costs of a healthy pregnancy. Before you even get to having your baby the costs start piling up. Prenatal screenings can be included in insurance, but buying prenatal vitamins over the counter can cost you $10-20 a packet – and this can add up.
Baby Formula: Whilst many mothers still opt for the traditional method of breastfeeding, baby formula is becoming more and more popular. The cost of a years supply of baby formula can be up to $2000.
It can be financially stressful having a baby. Do you think you will be prepared?