How to budget for baby

Is the buzz about the royal baby giving you some serious baby fever? Not so fast. 

According to the U.S. Department of Agriculture, the average cost to raise a child until the age of 18 is $234,900 — a number large enough to make anyone feel as though they would have to be royalty in order to raise a child! 

And when you include the cost to send that same child to college, the figures can be downright scary! 

However, if there’s one truism I've heard time-and-time again, it’s: if you’re waiting to have a baby until you can afford one, you’ll be waiting forever. Luckily there are steps you can take to ensure you are as prepared as possible for an upcoming bundle of joy. 

  • Take control of your debt — now. If you have credit card debt, now’s the time to take care of it. You’d be shocked at the amount of money you’ll have to save once those monthly payments are out of the picture! If you're looking for a quicker way to pay off your debt — not to mention the potential for lower interest rates! — you may want to consider a debt management plan.  
  • Explore your health coverage options. Checkups alone for baby can cost more than $100 per visit. You may also want to explore adding long-term disability and life insurance coverage to your existing healthcare plan. You should also look into the maternity/paternity leave policies at your workplace. 
  • Plan out the details. Will one of you stay home with the baby? Will you pay for daycare? Making – or at least thinking about – decisions like these will help you create a realistic plan for expanding your family. 
  • Practice living on a “baby budget.” If you are planning to live on one salary, start now. This will give you an opportunity to make the necessary lifestyle changes and cutbacks before your bundle of joy arrives — which will also make for a much easier financial transition. 
  • Get tips from the experts — other moms! No one can give you better advice than people who have been through the experience themselves. So ask your friends and family, or visit message boards and online forums. There are also a lot of mommy bloggers out there who write solely about this topic. One of my favorite blogs is Our Freaking Budget — Joanna and Johnny blog about everything from getting out of debt to planning for and raising their baby girl. 

What about you? Do you have any advice for new moms or moms-to-be? Share your thoughts by leaving a comment! 

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Jessica Horton is a former copywriter and community manager at MMI.

  • The Consumer Federation of America (CFA) is an association of nonprofit consumer organizations that was established in 1968 to advance the consumer interest through research, advocacy, and education. Today, nearly 300 of these groups participate in the federation and govern it through their representatives on the organization's Board of Directors.

  • Since 2007, the Homeownership Preservation Foundation (HPF) has served as a trusted, neutral source of information for more than eight million homeowners. They are partnered with, and endorsed by, numerous major government agencies, including the U.S. Department of Housing and Urban Development and the Department of the Treasury.

  • The mission of the U.S. Department of Housing and Urban Development (HUD) is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD works to strengthen the housing market in order to bolster the economy and protect consumers; meet the need for quality affordable rental homes; utilize housing as a platform for improving quality of life; and build inclusive and sustainable communities free from discrimination.

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