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Congratulations, you’re expecting a baby! Excited as you are, you will soon realize what generations of parents before you have learned: raising kids costs money. It supposedly costs parents six-figures to raise a child! So that means it’s time to start thinking about saving for a baby!
Being a mom of two kids myself, I’ve learned it from my own personal experiences. We’re talking about expenses for diapers, clothes, food, leisure activities, but also expenses for healthcare and future schooling. Having a baby is no doubt the most expensive thing you ever will do in your adult life.
Don’t be overwhelmed. As soon as you know that a little one is on the way, start reviewing your finances and make a plan to cut costs and boost your savings. I’ve learned to come up with some pretty creative ways to save money. Here are five things you need to know about saving for a baby right now:
1. Review your finances: cut your extra costs
Now is the time to review your personal finances. Be critical and look for ways to cut expenses in your household budget. For each item, think carefully whether it’s something you need or want. I have cut out all the unnecessary. Things you can economize on are, for example, restaurant dinners, entertainment costs, such as concert or sporting event tickets, or magazine subscriptions. Cutting these costs will be the first start in saving some extra money.
2. Start saving up, but keep things separate
It’s time to start saving money for your little one as soon as possible. Setting up a savings account that is separate from the accounts you use regularly can help keep the money where it belongs: in the account. It’s wise to automatically save as much money as possible per month in your “child fund” savings account. How much money you save is all depending on your personal income and how much you can stash. It’s always a good idea to have an extra financial buffer in your bank account. Expect the unexpected because anything can happen.
3. Sell stuff you don’t need to pay for stuff you will need
Use the next few months to sell things you no longer need to help pay for your upcoming baby-related costs. Not only will this help to raise some extra money, but it will also clear clutter to make room for baby-related furniture and equipment. Look around your attic, basement or garage for items to sell online, for example clothing, shoes, sports equipment or small electronics.
4. Find sales on expensive baby equipment
It’s always good to stay on the lookout for any store sales or outlets of baby equipment. Always compare the prices, find coupon deals and also search online to look for the best prices. When finding a great deal, buying in bulk (diapers!) can also save you lots of money.
5. Reduce, reuse and recycle
It’s natural to go into nesting mode when you’re pregnant. You stock up on every single little thing. I’ve learned you really don’t need everything on most of the baby checklists. Buy the absolute bare minimum, and don’t even bother buying a diaper bag. Also try to reuse and recycle if you can. I’ve received some great used baby clothes from friends which had babies before me.
Welcoming a baby is expensive. When it comes to be saving for a baby, the sooner you begin, the better!
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