You’re expecting!? CONGRATS!! Are you looking for ways to save money on baby expenses?
Welcoming a new baby into your family is an exciting time, but it can also be expensive. Some of the greatest costs of raising a child are childcare, healthcare, nursery costs, diapers, and formula.
But with some planning and budgeting, you can prepare for your new bundle of joy without breaking the bank.
First, create a budget for your baby-related expenses. (You can download my FREE Budget Blueprint printable below to get started!). Consider items like diapers, formula, clothes, and childcare.
Next, prioritize your expenses. Some items are essential, like a car seat and a safe place for your baby to sleep. Others, like a fancy stroller or designer clothes, can wait.
Finally, don’t forget to factor in unexpected expenses (especially medical!). Emergencies happen, and having a little extra saved can give you peace of mind.
Check out my blog post on how to save for emergencies if you don’t currently have an emergency fund.
Once you have your budget ready, it’s time to come up with a financial plan on how to save on baby expenses. Let’s cover the 6 main types of (unavoidable) costs that come with having a baby and ways to save and plan around them:
1. Healthcare
Your very first expense will probably come in the form of healthcare for mom and baby. When budgeting for a new baby, it’s important to factor in healthcare costs. This includes prenatal care, labor and delivery, and postpartum care. Some things to consider in regards to healthcare costs are insurance and where to give birth.
Insurance
Be sure to check with your insurance provider to have a clear understanding of your coverage and any out-of-pocket expenses so you can begin saving in advance as this can be your most expensive cost.
Don’t forget once your baby is born, you usually have 60 days to add them to your health insurance using special open enrollment and can adjust your medical plan if you need better coverage. There are also many pediatrician visits in the first year so you will want to make sure you are prepared to cover those costs. It may be a good time to look into a lower deductible plan so you only have to worry about co-pays at Dr. visits.
The good news is many healthcare providers and hospitals will work with you to create a payment plan, oftentimes charging no interest, so you have time to pay what you can afford.
Home Birth
Home birth with a midwife typically has a lower cost than a hospital birth. However, it’s important to note that not all insurance providers cover the cost of home birth.
Some midwives can help you work around getting reimbursed from the insurance company after the baby is born so if home birth is important to you, discuss with a local midwife.
The cost of home birth can vary depending on the location and the experience of the midwife. On average, home birth can cost between $2,000 and $4,000, with some midwives charging upwards of $5,000.
Hospital Birth
Hospital birth, on the other hand, can be more expensive. According to some estimates, the average cost of a hospital birth in the United States is between $10,000 and $15,000. It can be even higher in some regions or if there are complications. These costs can vary depending on the type of birth, the length of the stay, and the medical interventions required.
It’s important to consider the potential for unexpected costs, such as emergency medical care or additional procedures during birth. Hospital births can also have additional costs for medications, equipment, and room upgrades.
Ultimately, the decision between home birth and hospital birth should be based on individual circumstances, including medical history, comfort level, and personal preferences. It’s important to discuss the costs and potential expenses with your midwife or doctor, as well as your insurance provider, to fully understand the financial implications of your decision.
2. Maternity Leave
Maternity leave is another expense to consider. If you have benefits where you work, contact your benefits or HR department to determine if you will receive paid leave or if you will need to save for an unpaid leave of absence.
FMLA provides job security for 12 weeks unpaid so if you are determined to be able to stay home and bond with your little one, make sure you budget for your unpaid leave so you can still cover your bills during that time.
Also, consider if your employer offers any benefits, such as flexible work hours or work-from-home options. This can save you on childcare costs and you may be able to go back to work sooner without taking a huge financial hit.
3. Childcare
Childcare can also be a significant expense. In my area, daycare is at least $10,000/ year per child and nannies want at least $12/hour. Research your options, such as daycare, nannies, or family members, and determine what fits within your budget.
Additionally, consider if one parent will stay home or if both will continue to work. It’s great if a parent is able to work from home and then you can save on childcare costs (these options have been dwindling away in recent months, unfortunately).
Use my Budget Blueprint to see if one parent can afford to stay home. With each additional child, there are more savings to staying home.
There are some childcare subsidies designed to help low-income families with the cost of childcare. Some common examples of childcare subsidies include:
Child Care and Development Fund (CCDF), Head Start, Early Head Star, Temporary Assistance for Needy Families (TANF), and State-funded childcare subsidies. You may be able to receive some financial assistance by checking into some of these programs.
4. Feeding
When it comes to feeding your baby, there are two main options: nursing and formula feeding. Both have their pros and cons, including differences in cost.
Nursing
Breastfeeding is generally considered the cheaper option, as breast milk is free (except for the time and emotional energy required) and doesn’t require any special equipment.
However, there can be some initial costs associated with breastfeeding, such as a breast pump, nursing bras, and nipple cream.
The cost of a breast pump can vary depending on the type and brand, but a basic electric pump can cost between $50 and $200. Most insurance providers cover the cost of certain breast pumps so check with your insurance before you buy.
Additionally, some mothers may require lactation consultant services, which can cost between $100 and $300 per session. Take advantage of any lactation consult services while in the hospital or with your midwife because those services are not cheap!
It’s important to note that breastfeeding can also have indirect cost savings, such as reducing healthcare costs and time off work due to illness. Breastfeeding has been shown to provide health benefits for both the mother and baby, including a reduced risk of infections and chronic diseases.
Formula Feeding
Formula feeding, on the other hand, can be more expensive. The cost of formula can vary depending on the type and brand, but on average, formula can cost around $1,500 per year. Additionally, formula feeding requires the purchase of bottles, nipples, and other feeding accessories, which can cost an additional $50 to $100.
Ultimately, the decision between breastfeeding and formula feeding should be based on individual circumstances, including medical history, personal preferences, and lifestyle.
It’s important to consider the potential expenses associated with both options and factor in any indirect cost savings.
You may find you do a combo of both, and that’s ok! Nursing can be a lot more difficult to manage than what the media has led us to believe, especially if you continue to work. Remember FED is best!
5. Diapering
When it comes to diapering your baby, there are two main options: cloth diapers and disposable diapers. Both have their pros and cons, including differences in cost.
Cloth Diapering
Cloth diapers have a higher upfront cost, as you’ll need to purchase enough diapers to last between washes. However, over time, cloth diapers can be significantly cheaper than disposable diapers especially if you have multiple children who will use them.
The cost of cloth diapers varies depending on the brand, style, and material, but a typical starter kit can cost between $150 and $500. You can sometimes find deals on cloth diapers in facebook marketplace groups and try different styles to see what suits your family. Although, you need to be aware that the elastic in some of the cloth diapers will need to be replaced over time as they get multiple wears.
Cloth diapers can also have additional cost savings, as they can be reused for multiple children, while disposable diapers are single-use. Additionally, cloth diapers are more eco-friendly, as they don’t contribute to the waste in landfills.
Disposable Diapering
On the other hand, disposable diapers are more convenient and require less upfront investment. However, they are more expensive in the long run. According to some estimates, disposable diapers can cost up to $70 per month, or up to $2,100 for two and a half years of diapering. This cost can vary depending on the brand, size, and location.
When deciding which option to choose, consider the upfront cost, ongoing expenses, and environmental impact. Ultimately, the decision is up to you and what works best for your family’s budget and lifestyle. Personally, I chose disposable diapering because I didn’t want the extra hassle of more laundry or setting up a bathroom station to handle cloth diaper cleanup.
6. Baby Gear
Finally, the baby gear/nursery! Definitely the most fun purchases when it comes to baby.
The best way to save on baby gear is to shop gently used items and/or borrow from a relative, neighbor, or friend. Many baby items, like clothes and toys, are barely used.
Purchasing second-hand goods can save you money and reduce waste. You can find second-hand items online, at garage sales, or in consignment shops. There are also registries geared toward second-hand items. However, it’s important to ensure the items are clean and safe before using them for your baby.
Another great way to save is to add items to a baby registry that allows you to make a list of items you need for your baby and share it with friends and family.
This can help ensure you receive the items you need and avoid receiving duplicates. Additionally, many retailers offer completion discounts on items that were not purchased from your registry, allowing you to purchase them at a discounted price.
You can consider adding a variety pack of pacifiers, bottle nipples, and diapering systems so you can see what works for your baby. Some babies prefer certain bottles or pacifiers or will reject them altogether so it’s best to not invest too much in one system upfront.
Conclusion
Having a baby can be expensive, but there are ways to save money, such as using a baby registry and purchasing second-hand goods.
With some planning and budgeting, you can provide for your new baby without sacrificing your financial well-being.
Start saving early.
Setting aside a little bit each month can relieve so much stress around finances. Enjoy this special time with your little one, knowing you’ve taken steps to ensure a bright financial future.
Let me know in the comments if you are expecting and when is your due date!
