In this video learn some tips for financial planning and saving for when you have newborn babies.
Tags:Economic Realities of a Newborn,financial pregnancy prep,healthsciencechannel,how to financially plan for a baby,parenting tips,preparing for pregnancy,saving money for children
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Economic Realities of a Newborn
Host: For Gayle Greenberg, being a mother comes naturally. A seasoned Kindergarten teacher, Gayle always felt secure in her abilities to love, nurture and raise her son, Aiden with the help of her husband, Sean. But, there was one part of parenthood she wasn’t going to leave to chance.
Gayle Greenberg: After we got married, I started putting money aside in a separate account, in our savings account for baby and we called it the baby fund. I would take my husband’s spare change and roll it and stick it in the back. I would take my spare change and roll it and stick it in the bank.
Host: And it was a good thing she did. At three days old, Aiden developed Jaundice and was visiting his pediatrician more often than expected. He also wasn’t taking to breastfeeding, so Gayle reluctantly switched to formula. Now, things in the Greenberg’s house are changing accordingly.
Gayle Greenberg: We used to go out to dinner a lot, now we’re trying to stay home more. Friday and Saturday nights sometimes we just stay home and play games.
Host: And since Gayle stays home with Aiden during the day, her husband’s career plans are temporarily changing, as well.
Gayle Greenberg: Once I didn’t have a second paycheck coming into the house, we realized that he needed to maybe go back into their workforce for a little while longer before his dream of owning his own business came true.
Host: Gayle has also incorporated new shopping habits into her daily schedule to make the dollars stretch just a little further.
Gayle Greenberg: He goes through diapers every 7, 8 days, so we cut the coupons and we get them in the mail and I just go when we have a coupon.
Dr. Joan Meek: Good morning, how are we doing?
Host: Pediatrician, Dr. Joan Meek, says while smart shopping is sure to save Gayle a few bucks, for many families, finances take the back burner to other new-parent fears.
Dr. Joan Meek: I tend to get more questions about, am I going to be a good parent, do I really know what to do. So financially, it may take a month or two for them to realize some of the total impact that this is having.
Host: And since expenses add up quickly.
Dr. Joan Meek: Childcare is probably one of the most significant expenses that need to be taken into consideration. Beyond that, then you have to think about feeding babies and clothing babies and diapering babies.
Host: Dr. Meek suggests saving at least 6 months worth of projected baby expenses. So what does that mean in dollars and cents? In the first year of life, plan on spending $700 on diapers, $1,500 on formula, $4,000 on daycare, $1,000 on clothes. Bringing the grand total for food, clothing and shelter to $7,200 in your baby’s first year of life. But the spending doesn’t end there.
Gayle Greenberg: And then you have all the expenses of, well I’m doing laundry more often and I’m washing bottles by hand everyday, multiple times a day. And so things like that that you can’t even calculate, it adds up.
Host: Heather, the mother of seven year-old Connor and newborn Faith, can relate. She’s no stranger to motherhood or the financial realities of a new baby. Since Faith was a pleasant surprise, saving ahead of time wasn’t an option. So, today, prioritizing has become this family’s financial plan.
Heather: I think sometimes you go without little things, some of the little luxuries you are used to getting, so you can get the formula or the diapers.
Gayle Greenberg: Okay, Aiden, we’re going to put your clothes away.
Host: For Gayle and Heather, receiving well-kept hand-me-downs has also helped ease some of the financial stresses.
Gayle Greenberg: I am very fortunate that I’ve taught elementary school and I have a bunch of parents who were so willing and so happy and ecstatic to get rid of their stuff and pass it onto me.
Host: Here are a few more ways to stretch your dollars, breastfeed instead of bottle feed. While formula will cost you about $30 a week, breast feeding is equivalent to the cost of a peanut butter sandwich. Keep an eye out for hand-me-downs or garage sales for everything from furniture to clothes. Except for a used car seat that may have been in a car accident, it’s all fair-game. If you plan to return to work, review your employer’s leave policy. You may be eligible for up to 12 weeks of leave with continued health coverage under the Family Medical and Leave Act.