6 Money Questions to Ask Before Having a Baby

Almost nothing else in life will have as much of a financial impact, so make sure you get on the same page before baby comes.

There are plenty of times when discussing finances with our significant others is a good idea. Before moving in together or getting married, or before a big move or a new job, are all good examples.

Another important time to talk about finances is before you have a baby. Almost nothing else in life will have as much of a financial impact, so making sure you’re on the same page before baby comes is a smart move. If you’re stumped on where to start, consider asking your partner the following questions.

1. Who Will Stay Home With Baby? 

Perhaps the biggest financial conversation you’ll have with your significant other is whether one of you will stay home with baby, even if only for a limited time. According to recent statistics from Childcare Aware of America, “the cost of child care in every state rivals families’ annual expenditures on housing, transportation and the cost of tuition at a four-year, public university.” Plus, the study added, “in 38 states, the cost of infant care exceeds 10% of the state’s median income for a two-parent family.”

Childcare is expensive, but quitting to stay home with a baby means potentially losing healthcare options, access to retirement accounts and matches, paid vacation and sick days, not to mention the mental stimulation and social advantages many get from their jobs. These are all important things to discuss.

2. How Will Our Lifestyle Change? 

People make life with a baby work in many scenarios, and what you’re comfortable with will be up to you, but it should be discussed. If you’re in a one-bedroom city apartment and think you can make it work, try it. If an upgrade is in the near future, or you’d like to start putting away money to purchase a house, that’s a conversation to have.

3. Will We Save for Our Child’s Education? 

Not everyone can afford to save for their child’s college, and that’s fine. But if it’s something you’d like to consider, start discussing it now. Because of compound interest, the earlier you start saving for your goal, the more you’ll have for your child when they turn 18.

It’s not just whether you’ll save but how much you want to save that should be discussed. Will you save enough money to cover the full cost of tuition at a private college? How about at an Ivy League school? Whatever your thoughts, be sure to chat with your partner so you can figure out what additional monthly savings would mean for your monthly budget. (Chatting with a financial adviser about your financial picture might be smart as well. Remember, experts say not to save for your child’s education if it means having to curb your retirement savings.)

4. Do We Need a Bigger Car or a Second One? 

My husband and I managed to live together for eight years before we bought a second car. (In fact, for six of those years we had no car, since we lived in Manhattan and didn’t need one.) We realized, however, that with a baby on the way it was important for us to be able to hop in a car at a moment’s notice, so we decided to lease one. Whether to lease or buy was a big discussion, as was how much car we could afford and what safety features were most important to us, particularly in rugged Colorado.

If you and your significant other have two cars, it’s worth discussing their safety and if it might be time to upgrade now that you’ll be driving a little one around.

5. How Much Can We Budget for Baby? 

For many young families, most of the basics are supplied by loving friends and family at a baby shower. Soon, however, your child will grow, and when she does, you’ll need lots of new stuff.

Before baby arrives, sit down and have an overall budget chat so you can determine what wiggle room you have to devote to baby. Even if you don’t end up spending that cash in the first couple of months, try putting it in a special savings account labeled “For Baby” so you have a cushion to fall back on once those new expenses start piling up. (Not sure where your finances stand? You can view two of your credit scores for free on Credit.com.)

6. Are the Proper Insurance Policies in Place?

With baby on the way, it might be a good time to start thinking about certain policies to put in place. Short-term disability, for example, is important, should one of you become unable to work for a period of time. (Be sure to check with your employer to find out your options.) Creating a will and naming guardians is important as well, and you’ll want to set up a life insurance policy for both parents.

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9 Ways to Keep Your Newborn From Putting You in Debt

Is your baby’s due date approaching like an oncoming train? Do you feel excited but also kind of freaked out by the responsibility and financial weight of caring for an infant?

I’m right there with you.

My second child is due this September, and my husband and I have been scrambling to make sure all our costs are covered — without tapping a credit card or two.

Luckily, our first child, who is now four, taught us a lot about budgeting for a newborn without breaking the bank. If you, like us, want to stay on track financially while welcoming a bouncing bundle of joy into your home, here are my top tips.

1. Don’t Give Baby Too Much Space

Each year, the government puts out a report titled “Expenditures on Children by Families.” It usually includes plenty of crazy-sounding stats, like the fact that 30% of what you’ll spend on your child until he or she is 17 will go towards housing.

Fact: We raised our daughter from birth to age two in a one-bedroom apartment, and we all survived.

If you’re thinking about moving to a larger apartment or home just because you’re having a baby, reconsider. You could save some serious money just by making space for baby where you currently are, even if that means forgoing the themed nursery in favor of a Pack N’ Play in the living room.

2. Put Down Social Media

Modern parenting is rife with budget booby traps like social media sites. Trust me, I’ve been there and failed that. Sites like Pinterest can be great for rounding up hacks for life with a baby. But it can also fill you with unrealistic ideas of what it means to be a good provider.

Let’s get this straight: Babies do not need designer clothing, expensive gadgets, loads of toys, or themed nurseries. Babies need love, cuddles, food, clean diapers and a safe place to sleep. So if you’re finding that Pinterest causes you to overspend before baby even arrives, take a break.

3. List the Essentials

I do not recommend that you get your list of baby essentials from a magazine funded mainly by advertisers who want to sell you more junk for your baby. Instead, talk to other real moms. They’ll tell you what they actually used with their babies and which items collected dust.

If you’re completely new to this baby thing and need a jumping-off list, here’s a list of essentials I really like. Of course, your mileage may vary. What you consider essential will depend largely on your parenting style and even what your baby likes.

One note of advice: You won’t need all these “essentials” right away. Consider just shopping for the first month or two, and then add additional gear as you figure out your parenting rhythm and style.

4. Budget Month-by-Month

Don’t leave all baby expenses until the last second. Instead, create a monthly budget, and start buying things early on. To start your budget, though, price out your list of essentials, and divide that by around six months.

Start working baby expenses into your budget now, and the cost of diapers and formula will hurt a lot less once baby arrives. Plus, you’ll be stocked up and good to go well before the serious nesting phase sets in.

5. Buy Used When You Can

There’s nothing wrong with buying used items for your baby, most of the time. Certain items, such as car seats, breast pumps and crib mattresses, are typically better bought new. But everything else, from swings to high chairs to clothes, can be had at a steep discount on the used market. And the best part is that since babies so quickly outgrow their clothes, toys and gear, many of these used items will be in excellent shape.

Make a habit to check online or your local kids’ consignment shop with your new baby budget. You’ll be surprised just how much you can save by opting for used over new. If you’re concerned about the safety of used items, check a recall finder.

6. Check Out Your Medical Costs

Actually having a baby, the medical part of the process, can cost anywhere from a few hundred to a few thousand dollars out of pocket. It all depends on your medical coverage and what type of birth you decide to have.

Chances are your insurance company will have a cost estimator tool online, so check it out. And if not, you can check with your company’s HR department to get some approximate costs for having a child using your health insurance. Then, if you have the option, start saving money in an FSA or HSA to cover at least some of your costs, tax-free.

What if baby is rather unexpected and you just can’t save $2,000 for medical costs while also getting the gear and baby clothes you need? Don’t sweat it. Nearly all hospitals will put you on an interest-free payment plan if you’re upfront about your needs. If you have to go into some sort of debt related to your baby, an interest-free medical bill kind is the way to go.

7. Secure Childcare As Soon As Possible

Childcare will likely be one of your biggest baby-related costs if both parents are returning to work. The sooner you start looking for affordable, high-quality childcare, the better off you’ll be. If you’re in a high-demand area, just getting a slot could cost you months on a waitlist.

You can save on childcare by choosing faith-based centers or home-based care. You could also consider nanny-sharing with another local family. This can get you more personalized childcare for a lower cost than if you paid the nanny’s full fees on your own. Whatever you do, though, start looking for childcare shortly after you know you’re pregnant, and budget for those costs right away.

8. Create a Gift Registry

Even if you aren’t planning to have a formal baby shower, take time to create a gift registry. Many registries, such as those offered by Amazon, will actually offer you a fulfillment discount on any items you haven’t purchased. This can save you 10% or more on your last-minute baby-related purchases.

Plus, even without a shower, you’ll likely have friends and family members asking what they can buy for the baby. People just love to buy tiny, adorable baby things. If you don’t want to get more newborn-sized clothes than your infant could possibly wear, set up a registry to help guide people’s purchasing decisions, should they so choose.

9. Don’t Forget About Maternity Leave

Maternity leave is another one of those things you should start planning for right away. While you don’t need to inform your employer about your pregnancy at any particular time, you should do some digging early on to discover what maternity leave benefits you may get.

Whether you’ve got paid, partially-paid or unpaid leave, you may want to bank vacation and sick time so that you can extend or fund your maternity leave. Then, plan what your budget will look like during leave, and put as much as you can into savings so that you can cover your expenses while one or both parents are off work.

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7 Easy Ways to Save Money on Diapers


If you are a parent of a little one, you know that diapers are something you just can’t get around purchasing. However, there are some things you can do to save money on your purchase. Here are a few ideas.

1. Amazon

Amazon may seem like a last resort when it comes to saving money on diapers, but it is a great resource. You can join Amazon Family, which can save you up to 20% off on diapers, wipes and other baby products. Your orders will always ship for free and you can even set them up for regular, automatic shipping intervals.

The really great thing about Amazon is that they often offer clip-less coupons, which can increase your savings. Best of all, you never have to leave home to get your diapers.

2. Coupons

It may seem like extra work, but a few minutes of clipping can add up. You can find great deals each week at your favorite store when you combine the discount along with the coupons. Make sure you check out our Coupon Database — where you can search for all sorts of coupons for your baby needs.

3. Try Another Store Brand

Often, the store brands are the same as name brands — just in different packaging. It might be worth it to purchase a smaller package to see how they work. Make sure that they do not leak and that your child doesn’t have any reaction to the product. These brands can be as much as 10-25% less expensive than the name brand counterparts — but work just as well!

4. Compare Product Packaging

When you get ready to buy, check the per unit price. It might be less expensive to purchase two smaller packages rather than one big one. Sometimes these prices are printed right on the store shelf, but if not, you can quickly do the math. If you happen to have a coupon to save $1 off of each smaller package, you can sometimes come out ahead and pay less per diaper.

5. Don’t Go Up to the Next Size Too Soon

When you purchase larger diapers, your product will include fewer diapers. That means each one costs you a bit more.

Just because the package says that they fit a certain size doesn’t mean you have to change. Your child might actually still fit into a smaller size diaper comfortably, which means you can save until he or she is too big to wear that size any longer.

6. Try Cloth

When I had two kids in diapers, we decided to go with cloth. We had to spend a few hundred dollars upfront, but we recovered that cost within 6 months of our kids being in diapers. You can check out this post about cloth diapers to learn more.

7. Stockpile When You Can

When you see an amazing deal on your brand of diapers, go ahead and purchase a few extra packages. This allows you to not only save time running to the store, but also makes sure you don’t end up paying full price when you reach the bottom of the box.

[Editor’s Note: You can monitor your financial goals like building good credit for free on Credit.com.]

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