Budget Tips for New Parents and Baby

New parents often struggle with balancing the budget and unexpected expenses after the new addition arrives. Luckily, there are numerous ways to deal with financial issues without sacrificing sanity or causing friction between mom and dad.

First, before the little one arrives, there are steps parents can take to start preparing for the financial changes ahead. For example, mom and dad should seriously consider childcare options, especially since cost can vary significantly, and some facilities have waiting lists of up to six months! Care options include traditional group-based facilities such as those operated by churches or independently operated daycare centers. Such centers are often used when one or both parents work outside of the home and guaranteed availability is needed. The costs varies based on region and facility size, but may average between $150-200 per week.

Other options include in-home care with the child(ren) being watched by a relative or other unrelated caregiver (also known as a nanny or au-pair.) While this option allows for more dedicated one-on-one attention within a familiar environment, parents should be aware that, depending on the hours required, some unrelated caregivers may charge as much as $400 per week.
A third option for daycare is a family daycare, where the child is cared for in someone else's home, often alongside the caregiver's own children. Although this type of care may offer more flexibility than traditional group-care facilities, parents need to be prepared to make alternative arrangements to account for the provider's personal vacation or ill children.
By shopping around, parents get a realistic idea about how much childcare will cost per month. Knowing this, they can start to create and implement a working budget. As soon as the cost of care is determined, parents should start setting aside an amount equivalent to the weekly rate into a savings account. By doing so, parents will have time to adjust to the financial change before the baby arrives. This will also give the parents time to make any necessary adjustments to their lifestyle in order to accommodate the new expense (such as limiting monthly entertainment expenses, or cutting back on impulse purchases.) Even just one or two months of saving the childcare expenses before the baby arrives will add up significantly, and can really help out if the mother doesn't have paid maternity leave.

Another way to significantly save money post-partum is to sign up for every baby club or freebie site available. Many grocery stores offer baby clubs (i.e., Publix, Meijer, and Wegmans) and will send the new parents valuable coupons for free and reduced-price products. There are also countless other companies that extend offers to new parents, such as Beech-Nut, Pampers, Huggies®, Upromise, Heinz Baby Club, Gerber, Similac, Enfamil, Johnson & Johnson and Nestle. Many of these companies will send formula or product samples along with money-saving coupons for future purchases. When signing up, parents should be sure to inform the companies that their expecting multiples. Often, companies will provide extra freebies or incentives for parents expecting two or more babies.

Of course, the least expensive way to feed the new baby is by breastfeeding. It has been estimated that families who choose to breastfeed can save over $500 each year versus those who only formula feed. After the baby transitions to more solid foods, couples can save significantly by making their own baby food. The benefits are numerous and aside from cutting feeding costs by up to 50%, parents retain control over the ingredients and eliminate unwanted preservatives. Homemade baby food can be frozen in individual servings for quick and easy access. There are many websites available with instructions and ideas for creating homemade baby-friendly foods. Investing a little time each week in preparing homemade food can really help stretch a growing family's budget.

Additionally, new parents should not overlook the fantastic bargains that can be found locally. Often, thrift stores will have gently used toys or children's' clothes at a mere fraction of the original costs. New parents should be cautious about purchasing things such as cribs and car seats, and should always check out product recalls before going shopping. The U.S. Consumer Product Safety Commission offers a great website resource. It can be found at: http://www.cpsc.gov and includes links to search for current recalls as well as report unsafe products. Other fabulous local bargain sites include community classifieds such as craigslist.org and freecycle.org. Both sites offer users the ability to post and search for just about anything from children's goods to automobiles and lawn care equipment.

Finally, aside from using search engines to find available savings opportunities, parents should also consider websites that offer community bulletin boards specifically related to bargain discussions, such as Babycenter.com. Here, parents exchange information on all sorts of bargains including coupon codes and where to go for the best discounts and sales. With just a little time invested for searching out the available offers, parents can save significantly each month.