Family Budget: Top Four Expenses for New Parents

Having a baby is a joyous time for new parents, expecially if the pregnancy was planned. Unfortuntately, the excitement of expecting a new life can quickly diminish once parents calculate the annual costs of raising a baby. On average, parents can expect to pay approximately $250,000 from the birth of their child until age 18. Of course, this costs is spread out over several years. Nonetheless, the immediate costs of having a baby can be overwhelming.

When a pregnancy is planned, parents can anticipate the initial costs. Beforehand, they may consider the daycare fees, clothing, food, and the sort. In some instances, couples may postpone plans to start a family until their finances improve. This is a smart manuever. The burden of being unable to support a family is great. Prior to starting a family, couples should count the costs. Here is a quick guide on new expenses that accompany the birth of a child.

Diaper, Formula, and Wipes: The the price of baby food, formula, and diapers may seem small. However, when you estimate the number of times these items must be purchased each month, necessities can become a huge expense. The average baby requires ten diaper changes a day. Moreover, each diaper change requires the use or a few wipes. These two items can add an extra $100 to your monthly grocery bill. Additionally, the average baby goes through 1 ½ canisters of formula a week.

Daycare Expenses: Because of rising cost of living, the number of working mothers and fathers has increased. For this reason, more and more children are being care for in daycare facilities. The average weekly daycare cost is $125 per child. This amounts to $500 a month, which equals $6000 a year. Even though most families receive daycare reimbursment on their tax return, the initial payout is costly.

Medical Expenses: Responsible parents obtain health insurance for their children. Unfortunately, some families cannot afford the monthly expense, and must pay for doctor visits out-of-pocket. On the contrary, the cost of having health insurance is pricey. If fortunate, parents may receive health care paid for by their employer. Even so, annual deductibles and co-pays may present a financial strain.

Clothing: Expecting parents usually receive a lot of assistance by means of a baby shower. The person hosting a baby shower should encourage guests to also provide gifts suitable for an older baby. This way, the couple will not acquire too many newborn items, nor will they have to buy new clothing and supplies months late.