Comments on: Preparing Financially for a Baby

By: Miss M @ M is for Money

Miss M @ M is for Money — Tue, 03 Feb 2009 17:41:21 +0000

There are costs even before the baby is due, pre-natal care, all the co-pays for doctor’s visits and maternity wear! Often you need a new wardrobe to fit your post baby body as well, guys don’t always think of these things. The biggest fear for me is daycare, I make too much to be the one to stay home and my other half isn’t keen on being a stay at home dad. I’m trying to save up before babies come along, knowing that it will be more difficult later.

By: Jim

Jim — Tue, 03 Feb 2009 14:40:31 +0000

Very true, I think it’s very much like anything else – you have to do what makes you happy, not what society has decided.

By: saladdin

saladdin — Tue, 03 Feb 2009 14:27:41 +0000

The very first question should be “Do I want a kid?” Just because you can afford one doesn’t require you to have one. Nothing wrong with not having a kid. Doesn’t make you less a person or your life “incomplete.”

saladdin

By: urbantux

urbantux — Tue, 03 Feb 2009 01:53:05 +0000

I have recently found out I will be expecting my second, I don’t know that you can truly ever say you are “ready” but I will say my son was one of the greatest things I have accomplished and I am sure that my second will be just as big of a blessing to me and my family.

By: Dave

Dave — Tue, 03 Feb 2009 00:12:24 +0000

I definately agree that you need to have your finances in order to have a baby. I don’t know if my wife and I are very lucky (besides the fact that we have an adorable 6 day old) but we’ve spent almost nothing out of pocket – around $400 – and most of that was frivolous (Did I really need a $200 car seat? Safety first – Yes). We’ve gotten a ton of gifts from our friends and family and we are also getting a ton of hand me down clothes from at least three people with little girls who are more than happy to clean out their attic.

I think that if you are frugal and are willing to accept that you can’t buy everything that Baby’s R Us sells and are humble enough to take other people’s unused baby stuff, then having a baby is way cheaper than the numbers listed above.

By: PT Money

PT Money — Mon, 02 Feb 2009 22:40:05 +0000

Thanks for the tips, Dedicated. I’ll do my best to be diligent towards the final bill. I agree that you shouldn’t just leave it up to others…investigate for yourself.

By: PT Money

PT Money — Mon, 02 Feb 2009 22:37:51 +0000

@FFB – We’ve been truly humbled by the out pouring of gifts and hand-me-downs our friends and family have given us. There were three showers thrown for us. We racked up. We feel super blessed.

By: Dedicated

Dedicated — Mon, 02 Feb 2009 21:34:28 +0000

The song to me is just a confirmation of the thought – “I didn’t know how stupid I was until my teenager told me.”

As far as the cost goes, if you just have one, I would say the governments assessment is accurate. With each additional child the cost declines as it spreads over numerous kids, but don’t mistake that for cheaper – your still paying for 2.

As far as the medical costs go, that number is based on what medical insurance pays. I had all my children at hospitals, with normal deliveries. I paid cash for all of them. The most I paid was $1500 – that original bill was over $3k. So check your hospital bill. When you go in to deliver a baby they automatically add charges to your bill that they call standard, even if you don’t use them. For example – Tylenol I was charged $7 back then for 1 pill, because I had a midwife I knew to bring my own and saved that money by calling them out on it when the bill arrived.

Interestingly enough, they did not question the items I told them to remove that I didn’t use. Goes to show how much we are ripped off if we aren’t paying attention.

By: FFB

FFB — Mon, 02 Feb 2009 21:31:59 +0000

If you and your spouse have medical coverage make sure the hospital, your doctor, and your coverages know which insurance will cover the baby! We had some confusion with carriers when our son was born and it ended up we couldn’t get a visit covered and had to pay out of pocket shortly after he was born.

And, maybe you’re humble people who don’t want anyone to spend one you. That’s great and admirable, but register for baby items anyway! You never know when friends or co-workers will surprise you with a shower. And friends are very happy to chip in for a baby. Give them an opportunity to help you out by having a registry available. This also saves you money since you may not have to buy as many items or you can at least get credit should you have to return anything.

By: PT Money

PT Money — Mon, 02 Feb 2009 21:09:59 +0000

@Studenomics – Thanks for commenting. I think it’s a great idea if you’ve got yourself taken care of first.

We’re still deciding as to what we want to do with education savings. Obviously there are big advantages. But we have some other personal milestones to achieve before hand.

At the end of the day, I don’t think post-secondary edu is a requirement for any parent to take on. Retirement savings first, then maybe help the kids. Just my opinion.

@Audra – Thanks for the kind comments and the assurance that it won’t be “that” expensive.

By: tom

tom — Mon, 02 Feb 2009 20:54:30 +0000

I think having a baby is a big financial decision that should be planned out in detail ahead of time.

By: Audra

Audra — Mon, 02 Feb 2009 19:05:13 +0000

Congrats on the soon to be new addition- I think your post is right on as the need to prepare financially- like you I think the projected costs are a little high. My son is almost 18 months old- has health insurance, and all the needed ‘baby’ items (As well as many not so needed ones) and including the delivery we spent far less than 11K on him his first year…

By: Studenomist

Studenomist — Mon, 02 Feb 2009 18:02:16 +0000

Great post Phil! I am no where near to having kids, well unless something unexpected happens. My comment may seem silly but what about the idea of preparing for your childs education before they are even born? Setting up some sort of a registered education savings plan just to have a head start. It will allow the parents so slowly save for the childs post secondary education and it will allow the child to be able to attain a quality education without having to stress about loans.