How to Save When Baby is Here

Nowadays, a child born is estimated to cost a middle-income American family $250,000 until he or she turns 18 years old (USDA Reports). Numbers sound frightening but knowing what to expect ahead of time gives you the opportunity to plan ahead before the baby arrives.One of the biggest surprises for first time parents is the cost of diapers. On average, newborns use 8 diapers a day, that is 240 diapers a month. Cost of diapers at this rate can cost anywhere between $30 to $85 a month. Luckily, once babys get older they use about 4 diapers a day reducing your cost but here are some tips you can use for the first few months for the new baby.

  • Buy in bulk! Stores like Sam’s Club and Costco sell diapers in packages of 180 for $40.
  • Use diaper cloths, instead of using disposable diapers for the first few months. Cloth diapers can cost as little as $20 a month.
  • Buy generic brands, instead of popular brands such as pampers and huggies.
  • Create a baby shower raffle, where a package of diapers gets you a ticket entered into the raffle to win a prize.

In today’s working economy, most homes have two working parents. Shopping around for day cares is intimidating because depending on where you live, day-care costs can be anywhere from $5,000 to $25,000 a year. Here are some tips:

  • First and foremost, take advantage of family and friends in the area who could watch the new baby for free.
  • Change work schedules where you would only need day-care/baby sitter for 2 days.
  • Becoming a one-income family.
  • Having a child is a lot of responsibility but being aware and with enough research, you and your family will be prepared once the new addition arrives.

May 15, 2016