How to Prepare for the Cost of a Baby

Are you expecting a new addition to your family? First off, congratulations! Welcoming a baby into your life is a joyous occasion, but it's no secret that raising a child can be financially challenging. Whether you're preparing for childbirth or adoption, there are a few steps you can take now to help you prepare and budget for the cost of a baby.

Make a Plan

The first thing to do is to make a plan. Here are a few things to consider:

• Parental Leave. Will you or your partner be taking parental leave? If both of you get leave, can you take it at different times? Chat with your boss and HR to see what's possible. This can help you push off daycare for a few weeks or months, which can definitely help your finances!
• Birth Plan. Where do you want to bring your little one into the world - a birthing center, hospital, or maybe even a home birth? As you plan for the birth of your child, be sure to check out the finances involved with each option and check to see what your insurance covers.
• Baby Gear. Babies and children need a lot of gear! Some items are best new, but you can save big by buying secondhand for others. Check with your friends, family members, or neighbors to see if they have any items available to pass down or sell at a low cost.
• Health Considerations. Consider the financial implications of existing medical conditions for both the mother and child, and plan for potential treatments.

Create a Baby Budget

Once you’ve created your plan, it’s time to create a baby budget. It’s important to know your current expenses and save a realistic amount each month. Chances are, you'll need more cash than you think, especially if this is your first child.

• Set Up a Savings Account. If possible, start stashing away the amount you intend to spend on your little one each month. Putting that money into a savings account, like one from Scott Credit Union, is a great option. Their savings accounts have no monthly fees and great rates, so you can grow your money alongside your little bundle of joy.
• Practice Living on a Single Income. You can also practice living on a single income if one parent plans to stay at home after the baby's arrival. This approach not only prepares you financially but also builds a safety net for unforeseen expenses. If possible, start stashing away the amount you intend to spend on your little one each month.
• Communicate Openly. Remember, open communication with your partner is key to adjusting your budget as needed. If things start feeling a bit too tight, talk it out with your partner and tweak that budget together! Take Advantage of Free Financial Resources. Scott Credit Union offers a variety of free financial resources to help you navigate your new financial responsibilities. From budgeting tools to financial planning advice, these resources can help you make the most of your money as you prepare for your new arrival.

Preparing for the cost of a baby can seem daunting, but with a solid plan and a good savings strategy, you can manage the expenses and enjoy this exciting new chapter in your life.

If you’re ready to open a savings account, Scott Credit Union offers great rates with no monthly fees. Learn more online or talk to a financial professional at your local branch.