New Baby Means New Budgeting Challenges
A new baby has arrived, and your household is more active than ever. Family and friends join you in the celebration, and everyone buzzes excitedly.
There’s nothing like a baby to reinforce the fact that even happy events can derail a budget. Consider that a recent U.S. Department of Agriculture study indicated that middle-class families will spend between $270,000 and $393,000 per child between birth and age 18. And that doesn’t include the cost of college.
Needless to say, budgeting becomes extremely important right now.
Consider Costs And Used Baby Items
Gearing up for a new baby can cost a small fortune—even if you're clear about your priorities. You need some equipment, but you do not need everything you'll find featured in parenting magazines, baby boutiques and department stores.
- Let friends and relatives indulge a bit, but otherwise try to stick to essentials.
- Accept hand-me-down items gratefully.
- Make sure those older items meet any current safety standards that might apply.
And remember to talk to someone at PrimeWay Federal Credit Union about your new family member. As soon as you have a Social Security number for the child, set up a youth savings account with us and let family members know about it.
You should also consider establishing an emergency fund through a PrimeWay Federal Credit Union savings account, if you haven’t done so already. Unexpected costs can arise, and you don’t want to rely on credit cards when a specific expense outpaces your current cash flow.You can use this PrimeWay Federal Credit Union calculator to determine how much you'll need to save to establish an adequate emergency fund.
The earlier you start with good budgeting and planning, the better off you’ll be later.