Ideally you have the time to take a look at the financial impact of preparing for a child before it arrives! Now is the time to take a look at two budgets.

1. Baby stuff
2. Household finances

I touched on the first one last post….a good way to get an idea of costs for various items is to have a look at a couple stores and at compare new to used. There can be a huge difference in cost. Used can often be purchased at 20 – 30% of new which can quickly add up. Draft a list of items that would be suitable gift ideas. Many family and friends will be excited to celebrate with you and will want to buy a gift. If you provide suggestions, you’ll get the items you need/want and reduce the duplications. Here are some items commonly included on the ‘baby list’: car seat, stroller, baby carrier, sleeping place, blankets, receiving blankets, toiletries (thermometer, soap, shampoo, brush, nail clippers, diapers, wipes, cloths) and some cosy clothes. An infant doesn’t need a whole lot. Each 6 months, babies develop…significantly! Expect some costs with each stage. The next stage can lead to more equipment, food and clothes etc.

The next budget to take a look at is Household Finances. The biggest impact of having a child in your life is the change to your household income. Recognize that your contribution to the household income will reduce to the government maternity maximums plus any top up that your employer may provide. This can be a substantial reduction to your income. Don’t forget that there may be reduced expenses by staying home as opposed to going to work. The biggest impact will come when your maternity leave ends and you return to work or stay home with the child. In the first scenario, you will require child care for your child and the costs for this vary by type of child care and location. Check out a couple places in your area to get an idea of the monthly fees. They can range from $500 to $1200 or up to $2500 if you choose to go with a nanny (the live in option reduces the monthly nanny wage by approximately half if you provide room and board). If you decide to stay at home, then your household must operate on one income only.

It can be valuable to jot down the budgets so that you can decide how to set up your household and how you will spend your money.

1. Baby Stuff: List the items and the amount you expect to pay
2. Household Finances: Quantify your income for the 2 stages (while on maternity leave and after maternity leave) and list your expenses