Being a new parent comes with a whole host of surprises. Unanticipated joys can brighten your life as your child grows and develops. Unexpected expenses, though, can bring extra stress to an already tight financial situation. If you’re about to become a new parent, here are just a few of the most common expenses you’ll need to add to your budget.
1. Paying for Convenience
Bringing a new baby home is a life-changing experience, and adapting to your new way of living is going to take time. Most new parents find themselves strapped for time, energy, and brain power, especially during their baby’s first few months of life. Even if you normally stick to a strict budget, this is a good time to pay for convenience. Make room in your budget for takeout or ready meals, time-saving baby gear, and the occasional babysitting service. You’ll thank yourself later.
2. Keeping Your Home Comfortable
You may be able to handle living without air conditioning or while keeping the thermostat on the most economical setting, but your new baby may not be so resilient. A happy baby makes for a happy household, and you may find yourself adjusting your thermostat to keep your baby comfortable. Unfortunately, air conditioning accounts for about 12% of U.S. home energy expenditures, according to the U.S. Department of Energy. Even worse, space heating accounts for about 45% of the average American’s energy bills. As you adjust your thermostat to keep your baby comfortable, you’ll need to adjust your budget along with it.
3. Increasing Your Water Usage
Adults can be relatively conservative with their water usage, limiting showers to just a few minutes and staying judicious about their laundry schedules. Adding a new baby to your household is entirely unlike adding a new adult. Between blow-out diapers and reflux, babies may require several baths and outfit changes every day. If you already suspect your water bill is high, now is the time to look into it. According to the Environmental Protection Agency, 10% of homes have leaks that waste over 90 gallons of water every day. Fix any leaks you find, and prepare for increased water bills once your little one comes home.
4. Saving for Your Baby’s Future
Many parents dream of sending their children to college to get a high-quality education. With high tuition prices and shocking student loan interest rates, your child’s best chance of financial success lies in your ability to cover their college expenses. If your budget can allow for it, start investing in a college fund as soon as you can. Choose your investments carefully, and only work with trusted financial institutions. According to the Federal Deposit Insurance Corporation, All FDIC-insured institutions must disclose extensive financial information in quarterly reports known as Call Reports. If you work with an FDIC-insured institution, you can trust that your investment in your child’s future will be insured.
Although parenthood can certainly strain even the best-planned budget, seeing your child grow and thrive makes every additional expense worthwhile. Plan ahead as best you can, and leave some wiggle room to account for the unexpected. With time and preparation, you’ll find ways to meet your child’s needs while staying well within your budget.
