Budgeting for a Baby Without Going into Debt

Having a baby can be an exciting, nerve-wracking and unexpected experience. One of the things that you may want to consider with a new member of the family is your budget. It's easy to want it all for your new baby. But it also makes sense to save on items where possible. Here are 10 smart ways that you can budget for a baby.

Budgeting for a baby

Budgeting for a Baby

  1. Know your expenses

    With a new baby comes new costs. Most newborn parents might be surprised by the daily, weekly, and monthly expenses that can come with a baby. You should estimate your monthly costs, so you do not get caught short. Here are some of the expenses that you may encounter:

    • Diapers

    • Baby formula

    • Clothing

    • Toys

    • Bedding

    • Crib

    • Playpen

    • Baby Proof items

    • Medicine

To help you save on these expenses, try to buy these items in bulk. Yes, the upfront cost might be a little more expensive but you will likely save big on the per unit cost. Also, look for sales and shop around.

  1. Anticipate out of pocket medical costs

    A baby will require regular visits to the doctor. While many of these costs will be covered by your medical insurance or by Medicaid, there may be some out-of-pocket costs that you may encounter.

    The average cost of delivering a baby is between $5,000 - $11,000. This estimate includes the duration of care, obstetrician's fee, and the anesthesiologist's fees. However, there are additional out of pocket medical you may encounter, such as:

    • Prenatal Vitamins - Prenatal vitamins can cost about $10 to $20 per month

    • Ultrasound - An ultrasound can cost up to $700

    • Lab work - Lab work, such as blood and urine tests, can vary.

    • Birthing classes - These classes can range from $50 to $200 without insurance

Be sure to check your insurance to see which expenses are covered by your policy and which expenses might have to come out of your pocket.

  1. Take advantage of work benefits

    You or your spouse's job may offer pregnancy and new child benefits. It is a good idea to contact human resources to see what services might be available. Also, be sure to check your state laws to see if your employer is required to offer you or your spouse certain benefits during pregnancy or just after childbirth.

  1. Consider not buying newborn clothing

    When you are expecting, most friends and family members will gift you with newborn clothing. Save the money you have for out-of-pocket medical costs, diapers, food, and other baby expenses.

  1. Look at stores that specialize in second-hand baby clothing

    Many parents will sell or trade in baby clothes into a baby clothing store or kids consignment sales since babies grow quickly. Be sure to check these stores or sales events before considering new baby clothes. The clothes at these stores or sales events could be bought at significant discounts.

    Every city has independent stores that sell second-hand baby clothing. You can also look at charity thrift stores such as Goodwill and the Salvation Army.

  2. Look at community resources

    Just about every community offers several resources that help parents of new children. Here are some organizations that can help new parents:

  1. Take advantage of tax breaks

    As a new parent, you might be able to take advantage of certain tax benefits that will allow you to lower your parenting expenses. Here are some of the tax advantages that could help you save money if you qualify for them:

    • Child tax credit

    • Child and dependent care credit

    • Earned Income tax credit

    • Adoption credit

To learn more about these tax advantages and see if you might qualify, visit this IRS page that details all available child tax credits.

  1. Talk with experienced parents

    One of the best ways to learn to budget is to talk to parents who already have years of experience with budgeting for a baby. Here are some of the best questions that you can ask an experienced parent:

    • How much should I budget each month?

    • What were the biggest, unexpected costs?

    • What community resources are available?

If you do not know any experienced parents personally, you can check out local social networks like NextDoor to solicit advice. You can also read new parent blogs and seek out community resources.

  1. Look to friends and family for help

    Your friends and your family may be happy to help you with your new baby, but, you should make sure that you ask for the right type of help. Here are some of the ways that your friends and family might help you save with your new baby:

    • Babysitting

    • Giving you some of their baby clothing or baby items no longer in use.

    • Helping you set up the baby room.

    • Helping you shop while you are at home with the baby.

Try your best to ask a wide family of people in your family and your social circle to not depend on one person to help you with your baby.

  1. Think ahead

    Babies grow quickly and you will likely run into new challenges. To stay ahead of the game, you should do your best to plan and anticipate what you will encounter. When the child is a newborn, anticipate what the child will need when he or she is at three months, six months, one year, and so on.

Staying on budget while raising your little ones

Budgeting for a baby might seem like a challenge at first. However, several governments, employers, family, and community resources are available that could assist you. Be sure that you are aware of all these resources and take advantage of them.

Also, do not forget to be proactive, budget, and stay on top of the expenses that your baby might need. With the right planning, you might be able to budget for your baby with as little stress as possible.

You Might Also Like


The information provided is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs. Big Picture Loans disclaims any and all liability in the event any information, commentary, analysis, opinion, advice and/or recommendation prove to be inaccurate, incomplete, unreliable, or result in any other losses. Your use of the information on the website or materials linked from the Web is at your own risk.

The content at any third party site may be subject to copyright or other intellectual property rights, and may not be redistributed without the permission of the third party site owner. Any reference obtained from this blog to a specific product, process, or service does not constitute or imply an endorsement by Big Picture Loans of the product, process, or service, or its producer or provider.

Consumer Notice: Our loans should be used for short-term financial needs only, not as a long-term financial solution. Individuals with credit difficulties should seek credit counseling. For more information, please see our Financial Wellness Page.