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Budgeting for Baby

Financial Tips for Expecting Parents

There’s a lot to consider as you prepare to expand your family, but one of the most important considerations is budgeting for your baby’s arrival. Regardless of your financial situation, there are ways to create a plan that fits your family’s needs and budget.

When to start saving – now!

The average cost of raising a child in the first year can be quite high. This is why it’s so important to start saving for baby expenses as soon as you find out you’re expecting.
To keep those funds safe and secure, consider opening a basic savings account or money market account at a local credit union. Your funds will be easy to access with online and mobile banking tools, plus you’ll have the peace of mind of knowing you can stop by a local branch if you have questions.

New baby expenses

Let’s break down some of the typical expenses that come with a new baby:

Diapers: Babies go through about 3,000 diapers in their first year! To prepare for this expense, add a monthly restock to your budget, register for diapers for your baby shower, or buy in bulk to help make that cost more manageable. Also consider cloth diapers, which are an initial expense, but can save you money and create less of an impact on the environment.

Feeding: However you choose to feed your baby there are some essential items you’ll need to have. Most insurance companies cover the cost of a breast pump, so check with your provider and research the models they cover to find the right one for you. Also keep in mind the cost of formula, bottles, and cleaning accessories. These items make great registry additions!

Baby Gear: Consider talking to friends and family to learn their top newborn and toddler must-haves. It might surprise you that many of the baby items on popular websites aren’t really so crucial after all (looking at you, wipe warmer).

Enrichment Basics: Babies don’t necessarily require large amounts of toys. As your child grows, invest in toys that help them develop their motor skills, learn about the world around them, and expend energy. There are ways to save money on these items too.

How to save money

There are plenty of ways to save money on all the essential baby items. Here are some strategies:

Hand-Me-Downs: One of the most affordable options is to get hand-me-downs from family, friends, or online groups.

Secondhand Shopping: If you are on a budget, consider buying secondhand items. You can find great deals on gently used items at stores like Kid-to-Kid or at Rhea Lana resale events. You can also search for offers in your area on websites like OfferUp or through online parenting groups. Be sure to inspect all secondhand items for damage and research any product recalls.

Amid the whirlwind that comes with expecting a new addition to your family, remember that your journey can be both joyful and financially responsible. By starting your savings early, carefully considering your baby’s needs, and making smart choices when it comes to baby essentials, you can embark on this exciting chapter with financial confidence.

Rachel Galvez
Rachel Galvezhttp://www.arizonafinancial.org
Rachel Galvez is the Marketing Partnerships Manager at Arizona Financial Credit Union. A mom of two, Rachel is committed to empowering families with the information they need to make smart financial decisions now and set their children on the path to financial success in the future.



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