Here are some financial planning tips for those who are expecting (or planning) a new baby:

• Start saving early.  As soon as you decide to start a family, or as soon as you know that you’re expecting, you should start setting aside some money.  These savings will come very handy when the baby will be born.  If both parents are working, you will probably lose out on some salary when you or your spouse take time off for the baby’s birth.  Your savings will come very handy then.
• Make a list of all the things that you need for your new baby such as carry cot, crib, baby monitor, car seat, etc.  If you have a lot of family and many friends, you may get many of these things at your baby shower.  But if you don’t, you need to start saving for them.
• Once your baby is born, you will need about $200 each month for baby formula, diapers, and other baby things.  In addition to this, you will need to set aside money for the baby’s health care.  The amount for healthcare cannot be determined as it depends on how often your baby will fall ill.  But it is safe to assume that you will need about $200-$300 each month for this.  Ask your employer how much it will cost to add the baby to your health insurance plan, or if you don’t have health insurance, get some immediately.
• Go take a look at all the day care centers in your area, interview nannies and decide which is best for your baby, if you need to.  This is if both parents will work after the baby’s arrival.  Once you decide on a care center or provider, you need to factor in that expense into your monthly budget.
• Once you have made an initial baby budget, you need to check whether your income will be enough to cover the additional expense.  If not, you may have to start cutting down on unnecessary expenses before the baby is born and perhaps alter your lifestyle a little.  Saving beforehand can save you a lot of hassle later on and you won’t find yourself buried in debt.
• Since babies outgrow everything very fast, especially in the first few years, you need not buy expensive stuff for your baby.  In fact, you can even look at used stuff or ask to borrow from friends or family members who have children but are not using stuff like their child’s crib, baby swing, etc.

Considering all these expenses, you might wonder how anyone can afford to have children.  But there’s some “good” news too.  Since your baby will take up all your time, you will have less time to go out for movies or fancy dinners, etc.  You will not go on impulse shopping sprees simply to pass time, nor will you spend money on DVDs, as you just will not have the time.  Think of this as automatic savings, which will go a long way to cover your added baby expenses.  And of course, the miracle and joy of a new child should more than compensate for all these financial sacrifices.

With proper financial planning, budgeting for the baby, and saving from the start, you can welcome your new bundle of joy into the world without having to worry about your finances.