Smart Ways to Save Money During the Baby's First Year
Welcoming a new baby into your home is one of the most simultaneously sweet, thrilling, and overwhelming experiences of a lifetime. It's also one of the most expensive. Once your little one arrives, expect your budget to feel the stress almost immediately, especially if you haven't done much planning ahead. If you're still waiting for your baby to arrive, get started financially preparing for his impending arrival as soon as you can. If your baby has already made her appearance, it isn't too late to take a look at your budget for ways to save and invest in the future, even with all your new expenses.
Here are some tips and suggestions for ways to cut your expenses during your baby's first year:
Rethink How You Spend
While it's hard to avoid the hype when it comes to buying for your baby, try to take a step back and consider what's really important. Overcoming the urge to overspend is difficult, especially when the pressure to buy more and to buy only the best seems to come from everywhere. Spend your money on items that should be high-quality for safety reasons, like cribs and car seats. Instead of shelling out for overly expensive toys and gear that you might not need, consider how much further that money could go in savings for college.
Give Serious Thought to Work vs. Childcare
If both you and your partner work, don't assume that the best plan of action financially is for both of you to continue working. Investigate all your options.
Quality full-time daycare can consume a significant portion of your incomes, so take a hard look at the numbers. Look for ways that you could realistically cut back on your budget before you make a final decision about work. Consider other options besides full-time traditional daycare, like sharing a nanny with a relative or friend who has an infant or small child.
Open a Flexible Spending Account
If either you or your partner has flexible spending accounts available through your employers, take advantage of this option. These accounts allow you to contribute some of your pretax income directly into an account designated for covering childcare and medical costs. This can really add up in the long run.
Breastfeed Your Baby
The American Academy of Pediatrics recommends that mothers exclusively breastfeed their babies for the first six month and continue for at least one year, or as long is mutually desired by both mother and child, for optimal infant health. With that said, breastfeeding your child is also the economical choice. While working mothers may need to invest in a good quality breast pump, which typically costs between $200 and $300, as well as bottles and storage bags, the investment is significantly less than the cost of formula.
If breastfeeding doesn't work out for you, always buy powdered instead of premixed formula, and consider using generic brands. The FDA requires generic brands to meet the same standards as name brands.
Clip Coupons, Shop by Comparison, and Try Generic Brands
Don't just shop out of convenience. Many stores are significantly less expensive than others when it comes to baby basics like diapers and formula (if you don't breastfeed). Keep an eye out for sales and get on mailing and e-mail lists so that you're up on the best bargains around. Quality is important, especially when it comes to diapers, so don't buy the jumbo box until you're sure that they really do work as well as the name brand.
