Baby Steps: Cutting Newborn Expenses
If you had a child in 2023, you could expect to spend about $331,933 if you add projected inflation--from birth until age 18, according to USDA data and inflations statistics from the Bureau of Labor Statistics.
According to the USDA study, the average amount a two-child, married couple family spends on a child is broken down by:
· 29% on housing
· 18 % on food
· 16% on childcare and education
· 9% on health care
· 7% on miscellaneous expenses
· 6% on clothing
So, how do start cutting expenses from the beginning? It’s very exciting when you find out a new baby is coming and t's easy to get caught up in a spending frenzy! Here are ways to take control:
· Listen to other parents about what you really need. Social media and marketers love to tell new parents what you need, but do you really need it? Talk to your friends who have already been through the baby stage. See what they feel the essentials really are!
· Buy as you go. Most people load up on everything before the baby arrives, but do you really need it right away? Purchase the essentials to start with, diapers, clothes, bottles, but wait to see what else you really need. And if you find you are desperate for something, in the day and age of Amazon Prime, you can usually get it the next day.
· Borrow: Instead of purchasing a breast pump, ask your friends if they have one they aren’t using anymore. Seek out hand-me-downs. Babies grow quickly, and usually only wear outfits once or twice, so receiving hand-me-downs saves a ton in the long run, plus you may be able to pass on to someone else down the road.
· Get coupons and samples: Sign up for the baby-food company newsletters and visit your favorite baby brand sites. Most will send you coupons with savings that will add up.
· Purchase a crib that is convertible into a toddler and then a twin bed. It may be a little pricier than a standard crib, but it will save you in the long run.
· Make your own baby food: it can seem like a lot at first, but making your own baby food is just cooking and mashing a range of fruits, veggies, and meats. If you have time, it’s not a big deal to mash steamed zucchini, or cooked sweet potato. If you save a bit of the extra ingredients from whatever you are already making for dinner and mash it up, you’re saving a ton over prepackaged baby food.
· Decorate wisely. Basic is best. Consider buying a comforter and window coverings in neutral colors and adding more colorful items like stuffed animals and a mobile. Little ones grow fast, and you won't be using "Winnie the Pooh" forever.
When it comes to saving money for your child’s future, Garden Savings has your back with our certified financial counselors. Book an appointment to get help with managing debt, budgeting, and more. Whether it's in person or online, you can count on our counselors to relieve your financial worries. Talk to an expert today and feel more confident in your financial plan.
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