How To Prepare Your Finances For A New Baby

A life changing experience is about to happen in your life, are you ready financially? When a new baby is brought home, there are many changes that will take place within the household. This is an exciting time in your life, one that brings with it great joy and also additional responsibility. Knowing how your new addition will affect the household budget is important to ensure the family remains financially stable. Some families may only be dealing with reduced income during mom’s maternity leave, while others may decide to live off of one income for an extended period of time. Fortunately there are several ways you can adjust your budget to handle changes in your financial situation. If you are scared, nervous or anxious about the affect your new baby will have on your finances, take a deep breath and consider the following tips that will help your budget adjust to the addition of a new baby.

Revisit your budget

Being a mother and watching your children grow may be priceless, but raising them isn’t. Having a budget helps you understand how much income is brought into the home per month and how much of that income is needed to meet financial obligations. Consider any additional expenses associated with a new baby as well as a decrease in income when recalculating your budget. This will make it possible to see where changes have to be made to keep your finances on track.

Embrace your frugal side

Buying, borrowing or accepting second hand items for your new arrival will drastically reduce the amount of money spent on “necessary” baby items. In most cases, newborns go through clothing and toys so quickly there is little wear and tear on these items. When you save money in one area of your budget, you can apply those savings to other areas that may be harder hit due to reduced income.

Review insurance policy

Check with your insurance carrier to see how much you are responsible for paying out-of-pocket for services or procedures associated with the birth of your child. Be sure your insurance covers most, if not all of your costs before the big day. If you do not have health insurance, contact local government agencies to see if medical assistance is available.

Save money naturally

Breast feeding is certainly a money saving tip. Not only is it the healthiest choice for your baby, but mothers come equipped with their own supply at no additional cost. Cloth diapers can save you a big chunk of change as well, especially if you are not into spending money on packs of diapers that you’ll just be throwing in the garbage anyway.

These are just a few of the things you can do to prepare your finances for the changes a new baby brings. Take some time to evaluate the financial changes that are about to happen and consider all options available to reduce costs and save money. You’re about to embark on the most amazing journey of your life-prepare yourself financially now so you can sit back and enjoy the ride!


  1. Great post – especially the part about insurance. It’s also very important to find out about covering your child once he or she is born. Many people will have to switch from an individual to a family plan. You definitely want that done before the baby is born.

Speak Your Mind