Are You Financially Prepared for a Baby?

Loading...
Loading...
While Benzinga mostly covers actionable trading ideas and news stories, we've decided to delve a bit deeper into personal finance. The team at Benzinga would like to assist readers with not just their investing endeavors, but their financial lives as a whole. And today, we continue this effort with determining whether you're financially prepared for a baby. Taking care of a virtually helpless human is difficult enough. However, financing the little tyke's every need has become increasingly difficult in these lean (albeit improving) economic times. Are you financially prepared for a baby? Let's discuss some of the costs you'll face.
Prenatal Care
If you have health insurance, most prenatal expenses should be covered. However, if you're roughing it without insurance,
WebMD notes you'll pay around $2,000
for prenatal care. At this point, make every effort to get health insurance if you do not have it. If you cannot afford or qualify for private insurance, contact your state for additional options. For example, the Illinois Moms & Babies program covers inpatient and outpatient health services during and for two months after pregnancy for qualifying mothers.
The Big Day
The delivery is typically the highest fixed cost of having a baby. While costs vary considerably from hospital to hospital,
a 2009 story in the Wall Street Journal
pinged them at $36,625 for three days. Typically, your insurance plan will cover most related costs. Still, you could easily pay several thousand dollars depending on your level of coverage. Related:
3-D Printer Used to Create Airway Tube for Baby with Birth Defect -APThe Basics
Basic supplies your baby will need – and a ballpark minimum for each - include the following:
  • Baby monitor - $30
  • Car seat - $50
  • Clothes – varies by item
  • Crib - $100
  • Diapers - $700 during first year
  • Formula/Food - $1,700 for first year
Childcare
For single parents or two-income households, childcare can be quite expensive. According to the U.S. Census Bureau, families with an employed mother and children younger than 15 spent an average of $143 per week (nearly $7,500 annually) on childcare in 2011.
Loading...
Loading...
Healthcare
Regular healthcare is required for infants due to their sensitive health status. Costs will vary considerably based on your insurance.
Future Expenses
The list of future expenses you could incur is endless. However, major expenses you may expect at some point include:
  • Education: tuition, supplies, etc.
  • Additional housing: another bathroom, bedroom, etc. to accommodate your growing child
  • Transportation: bus fares to school, car, etc.
  • Ongoing healthcare
  • Gifts: birthdays, graduations, holidays
Ways to Save Money
Obviously, obtaining health insurance is the best way to save money both during and after your pregnancy. However, a few other cost-cutting activities could help make a baby a more realistic option. These include:
  • Breastfeeding to save on formula expenses
  • Sharing baby clothes and supplies with other parents
  • Purchasing a used crib, stroller and other typically costly items
Loading...
Loading...
Posted In: PsychologyEconomicsGeneralUS Census Bureau
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...