Planning the baby budget

  • By Team TDO

If you are planning for a baby, get ready, your life is about to change and so is your budget. The fact of the matter is that you need to be prepared for your spending to shoot up during pregnancy and after the baby is born. That’s why financial planning is vital if you want to have a smooth ride.

Here are points you should consider.

Plan your budgets

Make a list of all of your monthly expenses. Then, pen down how much you have coming in each month and compare them to find out the difference. You will surely have items that you can cut off and start putting money aside for your baby.

Shopping savvy

If you are a shopaholic, then you need to be smart and savvy at shopping now. Give some thought to the shopping list. Prioritize the items and spend only on what is important.

Save using second hand

Save on major expenses like crib, cradle, and stroller by getting used ones. You can use them for your baby and resell them after the baby outgrows them.


Swap the items which you do not need for the ones you need for your baby. You can get rid of your unwanted things for the things useful for the baby.

Buy in bulk

Things like diapers and clothes can be bought wholesale. Prefer cloth diapers over disposable ones to cut on the budget. Disposable diapers add to the cost a lot and are not environment friendly.

Sign up for health insurance

If you don't have a health cover, well then it’s time to have one. If your workplace doesn’t offer one, look into plans offered by groups you may be a part of (such as a freelancers' union or small business organization) or call an independent broker.

If you're already pregnant, be sure to ask about coverage for pre-existing conditions. Find out now what prenatal services your health insurance does and doesn't cover.

Life insurance

You need to plan to take care of your child if something happens to you. Most new parents buy term life insurance, which insures you for a fixed amount for a given premium. It is generally the least expensive life insurance option and you can change the coverage, as your family's needs change.

Make your will and update beneficiaries

Make a will that states who should take care of your child and his or her finances (it doesn't have to be the same person, and often shouldn't be) in case something happened to you. Also, check your retirement accounts. Usually you name the beneficiaries of retirement accounts when you open them. You'll want to be sure these are updated to reflect your current situation.

Life would be very easy and enjoyable if you plan your finances well. Though babies’ needs add to the cost, the amount of joy and adventure they give is worth it. If you lack understanding on all how to go about budgets, you can always consult a reliable financial adviser to help you out. That way you can ensure having a smooth ride all through your pregnancy and even after the baby is born.