Making babies is easy, but paying for them?
The talk of baby making has entered the BudgetsAreSexy household, and I'm starting to get a little nervous. Not so much about having one or making one (that's the fun part!), but about the costs they suck up (the not-so-fun part). How much do babies go for these days?And that's not a rhetorical question either, sorry - I really haven't a clue :) If I had to guess, purely out of thin air, I'd say $10,000. And I'm not entirely sure if that means hospital bills, yearly costs, "per baby" or what. I'm as stupid as they comes to baby finances, so I'm hoping some of you will enlighten me. All I know is that they're expensive.
I plopped "how much do babies cost?" into the google, and the results were all over the place as you might expect. Some forums say they cost $800 a month once you get 'em going, and others say you're fine with $400 a month. There's probably too many variables to get an accurate figure for my exact personal situation (like daycare vs. home watched, insurance coverage vs. not covered, baby 1 vs. baby 2, etc, etc) but anything you can share would be very helpful.
I did try out a nifty Baby Cost Calculator though! You go down this huge list of selecting what you will and won't need, and at the end it pops out an average cost for you. According to OUR results, it says it'll cost us $4,119.00 the first year - or roughly $343.25/mo. It doesn't account for the hospital bills OR what you'd get for baby showers and presents and all that stuff, but it's a start.
Either way, I'm pretty excited to start a new adventure in our lives. We're not sure when this will all come about, but God willing we'll be able to produce healthy & happy little J. Juniors all over the place :) And you better believe I'll be blogging all about it.
Labels: baby finance, j doesn't know, life
posted by J. Money at
7:06 AM
43 Comments:
Actual birthing costs vary. We've gone from $250 out of pocket to $8500. That's 3 kids over 10 years. If things go well, you could slide for as little as $1500 total.
Breast-feeding beats the heck out of formula, financially, but breast-feeding doesn't always work. Ignore the boob-nazis who insist you are slowly killing your kid by using formula. I've got 3 kids, and each had different feeding problems.
Baby formula runs $19 for a big container at Sam's Club, or a majority percentage of your soul at most other big box stores. Formula will pay for your membership in under a month. For a big eater, that's $20 per week. For a normal eater, 2-3 weeks. For planning purposes, assume $100/month in formula costs for the first six months, when food starts coming into play heavily. After that, the formula expense goes down, but not away for at least 6 more months.
Diapers are painful. Not just the smell--though that hurts, too, sometimes--but the expense. I currently have 2 in diapers; one is potty-training. Our monthly costs for diapers, now, are about $75. It was easily twice that when they were younger. Figure about $100 per month in diapers.
I couldn't begin to guess at how much you'll spend on baby clothes. I have never bought clothes for our kids. Whatever didn't come free from friends and family walked into the house of it's own volition, following my wife home from the store.
Toys are an almost purely voluntary expense. You'll get as much as the kids needs free, as presents. You'll go overboard and give the kids 10 times that, without realizing it. Don't. For the first four to five months, its fingers and toes will be entertaining enough. After that, if there are more than about ten toys, it's too many; the kid will never get attached to any of them. Keep it small. It's better for the kids and the budget.
Portraits suck, too. If you have to get them done professionally, get a membership that covers sitting fees, and use coupons. I recommend JC Penney's. Using judicious coupons and the membership, we get portraits for under $20.
Baby food is probably cheaper to make in a food processor, but you can't beat the convenience of the little jars. If you watch sales, you can stock up affordably. Mix every meal with some rice or oatmeal mush to stretch it, without making it unhealthy. Depending on your kids, and how much you listen to the "experts", this is a nonexistent expense before six months. Our kids started eating baby food in their second months, at least a little bit.
I read somewhere that a baby born in 2007 would cost $2,500,000 from birth to college graduation. Surely this fact, if correct, must be the most efficient form of birth control EVER. Having said that we have two of our own. Never underestimate the power of nature!
-Luke Sidewalker
Oh yay! I'm excited to read about your babymaking adventure from a financial standpoint. We're not even married yet and are thinking about it too.
@Luke Sidewalker - are you sure that's right? I saw the same figure, only with one less zero... $250,000.
Which, by the way, is still a ton of money.
Good luck and barring being completely down on your luck and unable to support basic needs of a child, at some point you have to just jump in and go for it. You'll never feel completely ready.
We have 3 boys ages 4,2, and 1. We're so done now. But it's been a pretty amazing experience so far. I think babies are pretty inexpensive actually. It's when they get older and need swimming lessons, basketball shoes, etc. that it gets worse.
With kid #1 we bought Pampers and way too many cute baby clothes.
Kid #3 had whatever brand of diaper didn't leak and was the least expensive. Target brand and Walmart brand diapers worked great. Our kids were all breast fed but kid #3 eventually transitioned to formula. Generic formula was about half the price of name brand. Formula is so closely regulated that it has to have all the same ingredients. It's worth a shot at least if that's how you go.
Doctor co-pays were probably the biggest expense over the first year, but even that wasn't all that bad. All the baby accessories can be had on a sale, gently used, or borrowed if needed. Though I probably spent a good month decorating the first child's nursery, I eventually realized that baby isn't going to be physically ill if his curtains aren't adorable. Heehee. Best wishes to you, you'll do great!
You need to consider childcare (if applicable), which can easily run $1,000 per month for an infant.
Most things people buy are unnecessary, and I never processed my kids' baby food either.If you wait until six months or so food mashed with a fork is fine, then go straight to table food with slight modifications. If it's okay to leave links here, I just started a series called Feeding Babies Frugally: http://www.cookingmanager.com/feeding-babies-frugally-part-early-months/. And for the long term, Frugal Strategies that Pay Off As Your Family Grows: http://www.amotherinisrael.com/2009/04/20/raising-large-small-family-breaking-bank/.
Awww! Baby BudgetsAreSexy! It's nice to hear how couples go about making this decision. (Usually you just hear that they've made the decision.) Sounds like you are going about this in a responsible way. Go you!
BTW - you can DRASTICALLY cut down on your medical bills if you negotiate with the hospital right before Mrs. Budgetsaresexy enters her third trimester. As long as you have a healthy delivery and there are no additional fees the cost to you shouldn't exceed 3,000 to 3,500 dollars.
Ooh! Congratulations!
Wait, is that a little premature?
Either way, have fun!
I am eager to hear what people have to say from a budgeting perspective. The Mrs. is 4.5 months along and we are trying to figure everything out. We are budgeting $1500 per month for expenses + childcare. And we are hoping to put in $500-$1000 a month for college tuition, too.
The flip-side of this is that we go out to too many fancy dinners and have taken several too expensive vacations. And too many purchases. We'll probably save money in this respect! :)
It is a little scary, especially when we planned on waiting for 1 year to shore up our finances a bit after just buying a house that ended up being more of a fixer-upper than we thought.
But at least he seems to be healthy and I'm sure that my skill at budgeting will deteriorate after seeing his big blue eyes. Oh well.
This blog has really been a great help and will continue to help us soldier on. Our income reached a point where could rationalize too many purchases, but now, the proverbial fire is under our butts again.
We really tried to save as much as we could in retirement accounts and feel thankful for that cushion now that we reached 30 and are no longer DINKS. I could only imagine my stress if we had saved a lot less.
Budgeting and saving is more than seeing a number, but it helps families cope. Thanks for encouraging us all and helping us plan for the "slightly" unexpected.
Jake in MD
The thing is...if you wait until you can afford a baby, you will never have one. Who cares how much it costs? Or, with inflation, it actually costs you more to wait. So, get going!
Excellent news -- we've had the same talk at the Rainy-Day Saver household, too. It's an exciting (and terrifying) time. Hope you had lots of baby-making practice!
Ha ha... trying to make them is definitely fun! :-)
My challenge to new would-be parents is to think outside the box - for more reasons that just money.
Use a midwife. It is much better for everyone involved... including your pocketbook. Pay cash to foot the bill and get as much as a 50% discount. Few people know about this but if you offer to pay cash for medical treatment, you will almost ALWAYS receive a very large discount. Then simply ask the insurance company to reimburse you.
Not a believer in midwifery? Then you need to watch "The Business of Being Born". You can view it as a live stream on Netflix - definitely check it out.
Cheers Money - have fun trying! :-)
Congrats J! The Wife and I are currently 'trying' as well (very awkward when parents and stuff ask if you are 'trying')
Ooh this inspires a post on the cost of kids.
So, so much to say.
Will let you know when I post it.
Oh, my – this is truly baby week in my life. I just found out a good friend is expecting and my best friend is in the adoption process. They’ve been picked and are going to go get their new baby soon. I think I’m going to catch the fever! We’re trying to wait until we get our house but it’s getting harder and harder to be patient. The problem really is finances. Who has an extra $1000 a month for childcare – especially after our expenses go up with a mortgage to worry about? That freaks me out completely. But like someone said above, if you wait until you’re “ready” you’ll never do it.
I'm not an expert by any stretch of the imagination, but I do have an 8 month old son and can share how we've survived to this point!
We got incredibly lucky. We didn't end up really having to spend much out of pocket for baby stuff thanks to family and showers. We have good insurance too... our hospital bill was $250, and the meds they sent me home with another $20. Well child visits are $5 each, so that wasn't a big dent either.
I breastfed (again, lucky that I could, I know not everyone is able to) so it cost me the price of the pump and storage bags. Eventually I started supplementing with bottles of formula, so I go through about a container of formula per month. For that, I just watched sales and used rebate checks (that just get sent to you in the mail by every company imaginable). Rebate checks can even be used at Costco! When it was time for solids, I stocked up on the boxes of various cereals when they went on sale, and used coupons. For awhile, I was getting a coupon for Gerber cereals everytime I went to Target, and using the Gerber manufacturer coupons with those, and getting the cereal for next to nothing. I also make 95% of his food myself. It takes an hour a week, and I freeze it in icecube trays, then put into freezer bags separated by type. So easy. And so cheap. $2.50 butternut squash = 12 meals. If the pre-made goes on sale and I have coupons, I'll pick some up for emergencies or travel.
Our childcare costs are the biggest part of the baby budget. We pay about $540 a month for part time daycare. We've rearranged our work schedules to bring this cost down a bit. The downside is that we no longer have any days off together. Oh well. We'll live.
Diapers are expensive, but once again, coupons are a life saver. Sometimes you can get a 2 or 3 dollar off manufacturer coupon plus another store coupon, plus they're on sale or you get a gift card with purchase (Target does this). I look at the price per diaper to decide whether the deal is worth it. By and large, I like Costco's diapers. They're good quality and relatively inexpensive. We didn't have to buy a single diaper until Jack was three months old thanks to the people at my shower who loaded us up!
The other big purchases we've had to make are car seats, and we invested in good ones. I watched Amazon until the one I wanted went on sale for more than $50 cheaper than stores, free shipping.
For day-to-day baby stuff, we budget $100 a month. When we don't use it all (because some months, we really don't), it rolls into a special savings account that accumulates money for bigger purchases for the baby (like our winter clothes shopping sprees).
All that to say, if we can do it on our budget, anyone can. We are just smart about our spending. Coupons, sales, getting on baby mailing lists, researching purchases and price comparisons, and buying secondhand are all excellent things that will bring your costs down.
That was long. Thanks for reading :)
We did the baby thing not too long ago (18mnths old now). It wasn't nearly as expensive as we were told it would be.
To be honest at this point I don't care what it costs anyway - some things are more than worth the price of admission.
That said....double up your medical insurance, arrange a good daycare situation then practice, practice, practice till the magic happens!
J - I'm very interested to read your future posts in this category. We got married last year too...and are now also talking "baby." We also live in the DC area. $$$$
I keep a tight reign on our money, and we work on saving for a house, retirement, emergencies, and a few smaller things. I'd never want to be past child-bearing years and realize that we didn't try to have kids because we (I!) wanted to save. But ohhhh - it makes me nervous. There is only so much to go around. Baby would take a big chuck out of what goes towards the savings.
It will probably be a bumpy ride at first, but I'm sure we can do it.
Can't wait to read about how you and the Mrs. figure Baby into your budget when the time comes.
As a grandmother who just had her 7 1/2 month old grandson (with his parents) visit for a week all I can say is - new parents buy and request way too much stuff. He literally had his clothes changed 3 times a day and that does not include pjs. They currently have over 100 books for him - they only brought 5 with them. They have duplicate upstairs and downstairs equipment. I know times have changed but do you really need a crib/pack & play, walker, a jumper, 2 high chairs, 2 baby bathtubs, 2 swings? They don't have a big house (4 rooms down and 2 up). Simplify, simplify.
Ask friends with kids that are 3 or 4 what items they would/could not do without - plan from there. Furniture should be able to be used for quite a while - not baby themed. Leave themes for wall art.
It's the long term stuff that will cost the most - college, sports, etc.
And, as for the getting pregnant part - practice, practice and have the best fun while you do.
OOOOOOOps! so it is "Having a Child" Vs. "My Financial Freedom". I think the advice here will help me decide what I would do in future.
Uh..making babies is not easy, at least not for some. If you think raising a child is expensive, try spending $45,000 in one year for 2 failed IVF cycles. I think you and your wife are relatively young so my best advice to you is get going!
We just had our second in May, total cost was about 6,500 uninsured. We didn't have insurance for any part of that so that includes lab work for the wife, all the pre-birth pregnancy checkups, 1 night in the hospital, and one pediatric practitioner visit.
After that the cost really varies depending on the lengths you will go to keep costs down.
We bought diapers in bulk at a garage sale. They were unused and cost $3 for about 4 large packages which would have cost about $50. My wife will breastfeed as long as possible which cuts feeding costs drastically. Formula is expensive and not as healthy for the baby.
We buy clothes at used clothing stores meant just for kids clothes (may not be available outside of Utah :) and get outfits for 1/3 of the cost. We also reuse clothes and toys from the first, and any relatives we have that have kids around the same age.
I'm looking forward to reading about this. I noticed there are quite a few finance bloggers that have no kids and kids change everything so it will be nice to see one convert and see what ideas change :)
I like the baby shower inclusion idea...between now and preggers time it's best to make as many 'sappy friends' as possible! j/k...kind of :)
I do know that a lot of my friends are dealing with this dilema right now so I've heard a lot of different things myself. I know that it really does just come down to an itemized list of things you'll need...just like in your own personal budget.
I imagine it is a lot like when you added the mrs. to your budget. You had to include groceries for two. Two cars. Two people getting medications and doctor appts. Extra blankets. Extra pillows. Etc etc.
Granted I'm not married or a mother...so that's just the simplified, theoretical idea of it all. GOOD LUCK!
Wowwwwwwww - You guys are awesome!!! Hadn't been able to check this out for a while today and all these comments are a nice surprise to come back to :) I'll be taking in all of your recommendations and thoughts, so keep 'em coming! It's so cool to see all you baby makers out there.
And I'm sorry to hear about the hardships Anonymous :( You're totally right, being able to have a kid isn't always "easy", it didn't even cross my mind that some aren't blessed to be able to have them naturally like that - my apologies, that's how new I am to it all!
Anonymous again: Awww..J, thinks for responding. I don't mean to rain on your parade. I just wanted to share a bit of my story to tell others to start trying when they're young and NOT to worry about costs, especially since cost of raising kids is a popular topic on finance blogs. My husband and I waited (though not for financial reasons) so if we ever succeed, we don't care what the cost is!
I can see it now, a little "Budgets Are Sexy" with a mohawk! Good luck with everything and remember, practice makes perfect.
Good luck with the baby making J. CNBC released a report that a child now costs about $280,000 from 0-18, with several factors constant. But, I don't think you can truly put a price on a bundle of joy (that messes up your sleep schedule for about the first 5 years of their life). LOL.
What about the tax benefits of having children! I know it would help us out if we had one :) The cost of daycare would kill us though, because we don't have any family in the area to help us babysit because the both of us have to work to survive in this economy.
StackingCash
Sounds good buddy! I'm glad you'll be blogging about the entire financial aspect of starting a family and raising a baby!
Do know that if you move to Alaska, you get something like $1,500/yr in EXTRA INCOME! Whoo hoo.
Good luck!
Oh, and one thing I've always wondered, is why there are so many parents who aren't that wealthy who have a huge number of kids. Is it because having kids is actually really not that expensive?
Demographic studies say the wealthier you are, the smaller your family.
I think this would be a fascinating topic!
Good luck with the litlte J's!
haha, you guys are good. yes you are! yes you are!
In the end, babies are not about cost! They are about completing your family if God so blesses you!
J-
I'll tell you exactly how expensive babies are - They are as expensive as you make them.
If you run out to Target every time you 'need' one of these, or a box of those, then you'll be on here proclaiming how terribly expensive kids are. But if you plan ahead, beg, borrow and freecycle, you'll find another side of raising kids.
Ooooh, we just had this talk too! For us in Canada, we are lucky and the hospital / healthcare costs won't exist (visibly anyways). I just wrote a post about the amount we are trying to save in order for me to stay home one year with baby... kind of related to your topic.
Have fun practicing! ;)
@Kait - I hope God blesses me! A few times :)
@Mr. Not the Jet Set - Yes, I can agree to that. Target steals my money all the time anyways, just gotta limit myself - thanks!
@canadiandebtgirl - Cool! maybe we can all start some "baby finance club" or something :) Or at least take turns babysitting them...hehe.
We had twins, and even though we didn't have anything out of pocket for the birth/hospital, etc, the aftermath was expensive!!! I couldn't breastfeed (how I wish I could've) Formula scared us, as did diapers and all the other great expenses that come with them..
We found a new love for Store Brand products. We used Parent's Choice for a lot of our needs... especially their infant formula! We used Parent’s Choice over the National name brands and saved around $1200 in the year that we formula fed our twin girls. We saved a lot of money on formula and were able to get other things we needed for them.
Many people are scared to try the store brand infant formulas because they fear that they aren’t as “good” as the national name brands… But they are! The FDA has such strict regulations and guidelines on infant formula that there is no room to skimp on nutrition. Store brand infant formulas are nutritionally equal to the name brands, they just cost about 1/2 the price. THERE IS NO SUCH THING AS A GENERIC FORMULA! If you're trying to budget for your baby, and you have already made the decision to formula feed, check out the Parent’s Choice Savings Calculator You’d be surprised how much $$ you can save. http://parentschoiceformula.com/baby-formula-savings-calculator.aspx
Interesting. Well I'll keep that in mind then, thanks! It's a good thing I have everything in one spot here on the post - much easier to go back and visit once the big day comes!
My husband and I are looking into the costs of baby-making too; and the consensus among friends and survey-takers seems to fall at approximately $7k for the first year, without good medical insurance.
This might help a bit: http://www.justthrive.com/blog/2009/10/budgeting-for-a-baby/
Hey, thanks for sending over the link :) I see my bloggin' friend Trent was mentioned in there too - man he gets around! haha...Here's to making beautiful & healthy babies!!!
Many people are scared to try the store brand infant formulas because they fear that they aren’t as “good†as the national name brands… But they are!
The FDA has such strict regulations and guidelines on infant formula that there is no room to skimp on nutrition...Tanku you
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