Babies Can Break the Bank – 8 Ways to Save

It can take $284,000 to raise a baby into adult hood, according to estimates. That is a very high number, and we bet it doesn’t account for additional expenses that you may want to cover as child reaches adult hood, such as college education. With our economy still in peril, it may be worthwhile to plan ahead and think about ways to lower this figure. We’ve compiled a bunch of tips to help you save save save.

1. While pregnant, never tell anyone your baby’s gender-to-be. This is one of the less obvious ways to save money. It works like this: when you’re pregnant people will be dying to get you baby gear. You may even have a baby shower.  As soon as you reveal your baby’s gender, however, people will go nuts and start to buy you impractical “boy” or “girl” gifts. Instead of receiving onesies, diapers, car seats, blankets and books, all of which you really do need, you’ll get 15 pink frilly dresses you don’t need. Do yourself a favor, and keep the sex of the baby a secret. It’s more fun that way anyway!
2. Plan ahead. Make a budget, and stick to it. If you can only afford a $100 stroller, don’t buy a $700 stroller. Seems simple, right? Expecting parents and new parents tend to get carried away. They buy things they don’t need, and they over-spend. This is especially true with toys. Parents tend to go nuts with buying toys. Make a toy budget, and stick with it.
3. Speaking of planning ahead, start an emergency fund and start paying off your debt. Paying off your debt will build your confidence in your finances, and in this economy, everyone needs an emergency fund. If you can’t do both at the same time, aim for starting a small emergency fund (say $1,000 – $3,000) and then start paying off your debt. Having a small emergency fund will tide you over until you are ready to really put a chunk of change away for a rainy day.
4. Borrow items. Did your best friend’s child grow out of their stroller? Does your sister have her son’s old car seat collecting dust in the basement? Does your neighbor have a high chair they no longer use? As long as the product hasn’t been recalled, and as long as there haven’t been major advancements in technology, this should be safe to do. Check out our recalls section to make sure the products you are thinking of borrowing are safe, and do a little preliminary online research on the product first to make sure it’s the right product for you.
5. Recruit an expert. An accountant can help you plan for college, get the most tax returns and help you with your long term goals and future needs. On the same token, review both yours and your partner’s coverage, and make sure your life insurance covers your family in a worst case scenario. If it does, consult with a professional first, but consider skipping purchasing baby life insurance.
6. Breastfeed! This is a huge money saver, and it is also hugely beneficial to both your and your baby.
7. This tip may be less popular, but think about cloth diapers. Although they are a bigger initial investment, you’ll save money in the long term. We also wrote an article about why cloth diapers might be the best way to go.
8. Plan ahead for maternity leave. Maternity leave rights and pay in America are behind the times when compared to other countries. Save money ahead of time if you can, stock up on vacation and personal days so you can use them toward your maternity leave, and be sure to look into whether you can work from home for a little bit (even part time) so that you can extend your time at home with the baby.
   
   Plan ahead (WAY ahead) for maternity leave. Most Americans can’t afford to even take a decent amount of maternity leave, but if you plan you’ll be ahead of the curve.