Financial planning: Don’t go broke on baby

The saying that “having a baby changes everything” rings especially true when it comes to money, said Pamela Yip in The Dallas Morning News. According to the U.S. Department of Agriculture, a child born last year to middle-income families will cost Mom and Dad at least $204,060 by the time he or she reaches age 18. That figure covers only necessities such as food, clothing, and shelter. After you add in child care, orthodontia, and college, that baby can easily be a half-million-dollar endeavor. Dallas residents Rob and Casey Gerwer—proud parents of quadruplets—spend nearly $2,500 a month on baby food, formula, diapers, and wipes. The four tots have had, he says, a “massive impact” on the family’s budget.

Too often finances are an afterthought for expectant parents, said Erin Burt in Kiplinger’s Personal Finance. “After all, you’ve got other things to worry about, such as how to survive on an hour of sleep or how to get the baby to stop crying.” Before you go crazy buying cute little outfits and every gadget on the market, make sure you have one essential item in hand—a budget. “Know your needs and wants, and determine exactly how much you’re willing to spend.” Be sure to include all the day-to-day items—including not only diapers but frequent rounds of new clothes. And look at the bright side: “You’ll probably be spending more time at home with baby than going out on the town, so your entertainment expenses will go down.”

There are plenty of ways to trim costs and still give the little ones what they need, said Elizabeth and Robert Brokamp in TheMotleyFool.com. Accumulate items only as you require them. “For most major purchases, you’ll have plenty of time to comparison-shop, wait for sales, and see if your friends have hand-me-downs they’d like to pass your way.” When you must make a purchase, take the time to shop around. “This doesn’t have to be tedious, since much of it can be done over the Internet.” There are cases when it doesn’t make sense to skimp, especially where safety is concerned. “No bargain is worth compromising your child’s safety.”

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