Helpful Tips to Budget for Your Baby's First Year

If you happen to have a little baby on the way than you might want to consider laying out a financial budget for your baby's first year. The cost of feeding and clothing a child during the first year of life can add up very quickly regardless of whether or not you budget accordingly. However, a budget that spells out exactly how much money you have and for what can really help to save time and money.

First, make sure to contact your health insurance company to find how much of the delivery costs they will cover. The bill will usually arrive within one month of delivery. If you find that your insurance company won't cover the full cost of the delivery then contact your hospital and organize a payment plan. It's better to think of this aspect well before delivery day comes.

You're going to have to add your baby to your health insurance coverage, so make sure to get in touch with your health insurance carrier to discover what it's going to cost you to add him or her on. Your baby's first year can have a tendency to be one of the more expensive years for insurance because they are going to be in and out of the hospital so often. Many insurance companies won't automatically add your baby unless you make the phone call to do so. Don't for get this important step.

Your baby's first year will require many visits as well as the occasional shot. Find out how many of these visits and shots your insurance is going to cover. Additionally, find out how much each of these items is going to cost and add that to your baby's projected weekly or monthly budget. If all of the shots aren't going to be covered it's a good idea to get in touch with your doctor and find out what suggestions he or she may have. Often times there are local clinics in the area that do the same exact shots for a much cheaper price. This is an option to consider if you're on a tight monthly budget during the first year.

Sit down and create a list of the kinds of clothes you know your baby will require the first year. Ask family and friends if they have any hand-me-downs you can use. Your baby's size will change dramatically throughout the first year so you need to prepare a fairly large budget for new clothes as the baby continues to grow at a dramatic pace.

Baby registries can be a great help. Sign up for one and send it to as many people as you know. Most of the time your friends, and especially family, will be happy to help out in any way they can. This registry can help to purchase some of the more expensive items you may need during your baby's first year.

Baby food is not cheap, especially if you decide to use formula. Do some cost research and budget accordingly. You can plan formula and diapers alone will add about 25% to your current monthly food budget.

Budgeting for your baby's first year is important, but don't forget the future. Look into starting a college fund. Hand out information on how to add to the fund to all your relatives.