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Preparing to increase the size of your family means preparing a baby budget.
Having a baby means more expenses, so having a baby budget prepared will help smooth out the financial aspect of the celebration.
First-time parents will not be shocked to learn that bringing their baby into this world will cost them some money.
Think of everything you use to care for yourself in a day, then keep adding diapers, formula, and so on to that list.
Having worked these costs into your baby budget and possibly adding some new categories will ease the stress of how much money you will spend.
If you don’t have a budget, download my free Excel budget spreadsheet with a sheet for every month of the year and customize categories as needed.
As a mom of two children, I can safely say that I’ve learned what I need to buy and what I don’t need to buy over the years, but the final call is up to you.
Being informed is the first step in preparing for your baby’s arrival.
Saving Money With A Baby Budget
How do you save money when having a baby?
That’s a good question because the expenses of having a baby can grow exponentially if you aren’t careful, although it doesn’t have to be all frills and bling.
The simple answers are to budget your money, prepare in advance as much as you can, and spend less than you earn OR make more money.
I don’t believe there is any baby budget calculator that will give you the definite answers you need, but preparing a baby checklist might help smooth out the budgeting process.
All you need is to figure out what baby essentials you need and factor them into your budget accordingly, which I will share a few of with you today.
Other considerations:
- Watching flyer deals
- Coupons
- Stockpiling
- Rewards programs
- Making homemade
- garage sales
- Mother-child sales
- Facebook Marketplace
- Varage Sale
- Freecycle
- Second-hand Stores
- Kijiji
- Friends and family hand-me-downs.
The rest is up to you to sort out your finances.
How A Baby Can Impact Your Budget
It is not very common that both parents will return to work immediately after the arrival of their newborn baby.
Maternity or parental leave in Canada provides one full year of Employment Insurance payments calculated based on your income of the year before your child is born.
Our government will provide up to 55% of your weekly income; that’s just over half of what you were used to making while working every day.
During your pregnancy, it is a good idea to learn to live on less by using a baby budget, figure out what 55% of your weekly income would be, and then save the rest.
Not only will living on less not be new to you once the baby arrives, but having the extra savings can be used towards purchasing things necessary for your baby once they are born.
Preparing For Your Baby’s Arrival
Nesting is something that is commonly experienced by expecting parents as we want to be prepared for when the big day arrives.
Like everything else, when it comes to budgeting and being prepared, making a baby checklist will be an excellent way to decide what you need to purchase and when to make these purchases, before or after your child is born.
While it is nice to be well prepared, remember that you do not need to purchase everything your child will need before their birth.
For example, if your newborn will be sleeping in your room for the first few months and a crib set including a fitted sheet and bumper pad is not something you can afford, you will not likely need it right away.
Knowing that you will need it for 3-6 months, budgeting the cost of a crib set will make that purchase easier on your wallet.
This gives you time to add it to your baby’s budget to save it as a projected expense, something you know you will need in a set amount of time.
Baby Coupon Clubs
Taking advantage of all the different programs some companies offer during your pregnancy can provide you with money-saving tools.
Companies such as Similac, Nestle, and Enfamil have programs that, once registered, will send you samples of formula, baby cereal, and baby coupons to save you money in the future.
Not only are the formula samples good to save, but if you are planning to breastfeed exclusively, some of these samples can be handy if you are struggling with breastfeeding and need to supplement with formula.
If you provide these companies with your expected due date or your baby’s birthdate, they will often send out age-related information and tips throughout their first year.
Preparing For Baby’s Arrival
What do you need to buy to prepare for the arrival of your baby?
While it is fun to go shopping and pick out everything you will need, it is easy to spend a lot more money than you can afford to buy something you think you need or fall into the ‘cuteness’ trap.
Baby clothes are so darn cute that you may need every cute outfit you see when you won’t.
Although it may be hard to walk past a great sale on size two diapers while pregnant, stocking up on them isn’t likely in your best interest.
Babies grow so fast, and you don’t know how many size two diapers you will use.
Instead, make a category for diapers in your monthly budget unless you choose to use cloth diapers so the money is available when you need to purchase your diapers.
I wrote an earlier post detailing the pros and cons of using disposable diapers vs. cloth diapers, so learning about what might work for you and fit in your budget might make the diaper days a bit easier for you.
New Vs. Used Baby Items
Online sites such as Kijiji and Freecycle can be utilized to obtain some free or cheaper new or used baby items.
While these sites are great for saving money on items such as clothing, bedding, and toys, there are a few items that you should not obtain second-hand.
Car Seats
In Canada, you must have a CSA (Canadian Standards Association) approved car seat before you can leave the hospital with your newborn child.
The manufacture date is present on all car seats, and due to constantly changing safety standards, the car seat expires five years from this date.
While you may find a car seat on Kijiji or garage sales for a fraction of the cost of buying a brand new one, you risk not knowing the accurate history of that seat.
Health Canada says certain items can’t be resold at a garage sale, including many baby items.
A car seat in a car accident should never be resold or given to a friend or family member.
Unless the person giving you the car seat is someone you trust to provide you with all this information, skip the used car seat and buy one. Jeopardizing your child’s safety isn’t worth the risk.
Breast Pumps
While some people may buy a used breast pump, I recommend keeping this on your baby’s checklist of things to buy new.
These pumps may not always be the easiest to clean so I would buy new ones for sanitary reasons.
Baby Bottle Accessories
While using second-hand bottles, whether glass or plastic, may be acceptable, bottle nipples and soothers are best to buy new.
Purchasing A Baby Stroller
Again, buying a new one will likely be the best option unless you trust the person giving you a used stroller.
There have been many safety recalls on strollers, and when you buy it used, you again are risking not knowing the history of the stroller.
Buying new allows you to register your stroller to be notified of future recalls, which is an option you will not have when buying it used.
Buying used items such as clothing, bedding, toys, and even maternity clothing will be a great way to save you money in your baby’s budget.
As mentioned above, while Kijiji and Freecycle are great online resources, don’t forget to check out local consignment and thrift stores, and don’t be afraid to ask your friends and family if they have items they will no longer use.
Include Daycare In Your Baby Budget
Once your maternity leave is over, it’s time to decide whether you will return to work.
A significant factor in making this decision is the cost of child care for your child while you and your spouse are away earning money to care for yourself and your children.
In some cases, individuals will find that their daycare costs, whether it’s a home daycare or a daycare centre are not worth paying for to return to work depending on your income.
Some people find they are working to pay for child care when they could stay home and spend that time with their children.
Thinking about returning to work and daycare arrangements are things you do not want to leave until the last minute.
Many daycare centres have waiting lists, so if you choose a daycare, it’s best to start looking early so you aren’t left with no childcare.
Not leaving this until the last minute will also give you the time needed to figure out how you will work this cost into your budget.
If you are a low-income family or a single parent, remember that subsidized child care may be an option for you.
Again, remember that programs will also likely have waiting lists, so not waiting until the last minute will be in your best interest.
Take Care Of Yourself
Don’t forget the cost of caring for yourself as a new mom when making a baby checklist.
Remember to budget for nursing pads, a breast pump, and nursing clothes if you plan to breastfeed.
As a new mom, you will require some aftercare, such as pain medication, which may be something you will need, and comfortable clothing is a must.
The birth of a child is an exciting, memorable life event that will overwhelm you with feelings of joy, happiness, and, in many cases, stress.
With the lack of sleep that comes with the addition of a newborn, some days may seem like they are never going to end.
Like any big event or major purchase, they are always easier to get through when you are prepared.
Making your baby budget well before the day your newborn arrives should be one of the first tools you use to prepare for this time in your life.
Baby Budget Discussion
- Do you have a baby budget, and when did you start preparing for the arrival of your baby?
- What other advice can you give new parents to prepare in advance, and what else should they buy?
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Great read Katrina! We did loads of bargin hunting with our kids especially the first. The first was easy as we got monies, clothes crib, pram all from parents and friends. We still went to sales and picked up things for next to nothing! I am fortunate that I had two boys and we could hand down clothes and then when I had Rhia my girlfriend gave me all her girls stuff. We still do the pass round of clothes and we are into year 4! I sold all my baby stuff and made over $450 which went to buying new bed and mattress .My boys stuff goes to another friend and then she in turn passes it round! It saves so much money! In my area there is like a pre-baby club up until your baby is 1year old and they give out free milk token! You got them every week and we saved so much on that too. Ours was held in the church so check out your area to see what they offer. They did talks on all kinds of stuff and gave out recipe cards for you to try too. It was also great to get to know new moms In the area too especially. If you are in the rural areas.
Thanks Nicola, hand me downs are great but learning to say no when you have more than enough already can be hard! The free milk token how was that used?
Our 4 children are all grown now. I worked for a year after my oldest was born, and it was tough juggling shift work, and childcare. At this point our house was paid off, and we decided I would stay home. I eventually started private childcare in my home for extra income. If I had it to do over, I wouldn’t have taken in extra children, and found ways to cut back on expenses.Too stressful.
With the tax benefits, it usually doesn’t pay for both parents to work, unless one is working parttime, and the other is caring for the children.
I started collecting baby clothes at yard sales at extremely cheap prices , before I was even pregnant. We used cloth diapers and disposables only when we away from home.
Having children doesn’t need to be expensive, as you have pointed out very well. Great post.
Thank you Kathryn. There are certainly lots of ways to keep the costs of caring for your children down it will require a bit of planning and self-restraint but it can be done!
I had a refresher course in what to get for a baby when my grandson was born!!! Back in the day, we were part of a family hand me down train, the only problem I had with it were that my two oldest were the oldest in the line up!!! The older boy’s stuff went to my sisters-in law as one had a boy the year after I did the the other 2 years after that. Same with my daughter, her stuff went to her cousin 3 years younger. After that I believe the clothes went to a cousin or two still with-in the family. Eventually some boys clothes came back my way after the younger boy was born, 7 years after his brother.
With our first and with the grandson we tended to buy the basics and then there were baby showers for the cuter stuff. Both I and my daughter got a lot of really cute stuff at showers and as gifts after the baby was here. I had a wish list of things I wanted more than needed and that list was passed around the family for the gifts and shower things. We did the same while expecting the grandson. Everyone loves buying all those super cute little outfits don’t we!!!!! I learned fast to not buy the really small sizes as they are out grown way too fast. An outfit would be size 9-12 months at the smallest for me to get.
My daughter signed up for a lot of those free goodies and I signed up for a couple of them as well and gave the products and coupons I got to her. I really wish there had been things like that back in my day!!!
Mat leave has come a long way too since I had my kids…. I got 15 weeks leave plus 2 weeks waiting period. It sucked and I hated going back even P/T!!!!
Waiting lists for daycare are a given, my daughter works in daycare and she has said that all of the ones where she lives have waiting lists that run months long!!! She lucked out with a home based daycare for the little mr and he loved it there.
Another great article Katrina!!!!!!!
Thanks again Christine, I couldn’t imagine having gone back to work after 15 weeks. I was working for the City when my son was born and being a seasonal position they were not required to keep my job, I was offered my job back though he was only 3 months old and I was no where near ready to leave him. How times have changed!
Katrina
First I downloaded the Excel Spreadsheet, thanks for providing this, I can use a budget spreadsheet like this. Secondly, thank you for all the insight and tips, these are very helpful as well. I had a friend of mine tell me that if you’re going to wait until you can afford to have children, you’ll never have children (LOL). But looking to save money without cutting corners and at the same time buying quality can be a daunting task, but your post has really helped a lot with this. Thanks for providing such practical and useful information!
I am happy to be able to help you out! Good luck saving!