Getting ready for the arrival of a new baby doesn’t include just buying cribs and baby clothes – it also involves a great deal of financial planning.
A new addition to the family can mean major changes in your monthly expenses. How much money should you set aside for your baby in the first years? And what kind of new expenses should parents expect after delivery? These are some of the questions that most new parents ask.
So, if you want to know more about the potential expenses that come with being a new parent and how to prepare yourself financially, then keep on reading!
One-Time Costs
You’ll most probably be starting from scratch if it’s your first baby, which means you should expect to spend a lot of cash on stuff like cribs and strollers.
However, the cost of medical expenses in the delivery of the baby is something that financially frustrates new parents the most. Medical expenses and the cost of an early learning centre are probably the most significant expenses you’ll have to make as a parent.
Here’s a rundown of some of the one-time costs you should expect to pay in the first few months.
Medical Expenses
According to a study published in 2019, the estimated medical expenses in different public hospitals for both mothers and their babies in Queensland was A$17406 in the first one thousand days (2.7 years) during 2012-2015.
As you can see this is quite a substantial sum of money and unfortunately, it’s almost impossible to accurately predict how much you will have to pay beforehand. The total cost can vary significantly based on a number of factors such as:
- Type of delivery, whether it is a cesarean or vaginal birth.
- The type of hospital where the delivery took place, whether public sector or private.
- Your insurance policies and their coverage.
- Whether or not you have access to Medicare.
- Duration of hospital stay.
- Where you live.
- The number of tests done before the baby is born.
- Complications during delivery.
- The number of overall health checkups.
Baby Items
Similar to medical expenses, the cost of buying one-time purchases like cribs can vary significantly depending on the needs and wants of parents. However, these costs can potentially mess up your budget so it’s a good idea to keep them in mind while planning. Try for high-quality items that will last such as a 4moms mamaRoo swing.
Travel Items
Every family needs a few essential baby items for traveling to continue on with their daily life after welcoming a new addition to the family.
A stroller, baby carrier, diaper bag, and infant seats for your car are just some of the necessary travel items that you will need to invest in.
The cost of all of these items can come out to be a hefty sum of money if you decide to go for more expensive brands. Some premium brand strollers can cost up to a thousand dollars. Buying second-hand equipment and using hand-me-downs from close friends and relatives can be a much better option in most cases.
General Baby Items Around The House
These everyday household items for babies include things like playmats, dressers, portable swings, cribs, and rocking chairs. These items are necessary to keep your baby safe and occupied.
The cost of these general items is mostly dependent on personal choices. Again, you should definitely consider going for used items as it may save you a significant amount of money in the long run. And thanks to the internet, finding good quality second-hand baby equipment has never been easier.
Feeding Supplies
For most stay-at-home mothers that have no problems with breastfeeding, the cost of feeding and nursing is very low.
You still have to bear small expenses on items like burp cloths, bottles, cleaning supplies, breast pumps, and nipples.
In case you’re unable to breastfeed the child, baby formulas will have to be used and will result in much higher monthly costs.
Unpaid Leaves
Depending on your employer, you may or may not be granted paid time off of work. Always keep in mind the potential loss of earnings in case you or your partner has to take unpaid leave and plan your expenses accordingly.
Ongoing and Everyday Costs
Once all the one-time purchases are done, most of your finances will be directed towards ongoing everyday items such as diapers, clothing, and routine health checkups.
Child Care
The biggest expense for families with working parents is child care. Child care costs can vary depending on the age of the child, where you live, and the type of care given.
In general, childcare costs in Australia are some of the highest in the world. The average hourly fee for childcare was around $10 in 2020 and has risen by 4.4% from last year.
Everyday Consumables
For a baby, the cost of consumables such as nappies, food, and clothes ranges roughly from $50-$100 per week on average in Australia.
The overall expenses on some necessities (like clothes) depend on the parents for the most part. There are some parents that don’t mind spending $50 on a single piece of clothing alone. But if you’re on a limited budget, buying baby clothes from cheap thrift shops might be better, especially considering how quickly babies outgrow their clothes.
Parents who choose to use disposable diapers can expect to use as many as 3,000 diapers a year. If you want to be kinder to your wallet and the environment, consider using alternative reusable cloth diapers instead.
Additionally, once you start weaning your baby onto solid food, expect to see a slightly higher weekly cost for food as well.
Fortunately, developing better shopping habits and seeking out special deals such as family discounts can help bring the overall weekly cost much lower for those on a tight budget. Also, here are some smart ways to save money when preparing to welcome a new baby!
