Are You (Financially) Ready for a Baby? X Costs You Might Not Have Considered

Do you think you are ready for a baby? Even when you are physically and emotionally prepared, you need to think of the financial aspect. Can your wallet handle a little one?

According to the United States Department of Agriculture, raising a baby born in 2015 will cost about $233,610. If you factor in inflation, the number may go as high as $284,570. This doesn’t even include the cost of going to college.

Even though you won’t be paying for everything at the same time, it is something to think about. Here are a few financial costs you may not have thought about. 

1. Plan for Unexpected Expenses

While you want everything to go well, there’s no assurance that it will. The journey toward parenthood may be riddled with unexpected hurdles, and you must be financially prepared to deal with them.

Infertility, for example, is a major issue affecting about 15 percent of all couples. Depending on the nature of your situation, you may need to deal with the costs of medication, IVF, or surgery. So your fertility should always be considered when it comes to cost.

If you choose the adoption or surrogacy path, there are financial costs to be considered. Your employer’s health insurance package may not cover these costs.

Another unexpected expense is pregnancy complications. About 25 percent of pregnancies have complications, and yours may be one of them. Think of the financial costs of handling these complications. Your insurance may not cover them.

2. The Cost of Giving Birth

Get a sense of how much it would cost to deliver. According to PolicyScout, the average cost of delivery in the United States is $4500 if you have insurance. Without insurance, it can be much higher. You’d be wise to get insurance coverage for your specific needs.

Insurance providers have online portals that you can use to get accurate estimates. Enter your hospital of choice, and you’ll receive a ballpark figure. Some hospitals have payment programs with no interest options.

Think about the cost of your doulas and non-medical professionals as well. You may need them for emotional and physical support during your infertility treatments, labor, or postpartum care. 

3. Your Pre-Baby Budget

Think about your pre-baby budget, especially if you won’t be having a baby shower. A newborn baby needs more than you may imagine. Create a list of everything they may need and their costs. Some of the most important things for your new baby include:

• Nursing pillow

• burp cloths

• bottles

• thermal bottle carrier

• bottle brush

• diapers

• changing pads

• baby clothes

• disposable wipes

• baby cream and ointment

• infant tubs

• blankets

• rocking chair

• pacifiers

• strollers

• car seat

• baby toys

4. Childcare Expenses

The cost of childcare depends on where you live. In some areas, it may be as expensive as your mortgage. Do some research and find out the cost of childcare expenses before having a baby.

Note that some tax breaks may help you cover some of the cost. The Child and Dependent Care Credit may help you cover 20 to 35 percent up to $3000 for one baby on eligible work-related childcare expenses. 

5. Plan Long-Term

Think of the long-term financial implications of having a baby. Many people fail to consider the long-term effects of pregnancy like cardiovascular diseases, postpartum depression, or issues associated with a C-section. Some women even get long-term disabilities. 

While these may not be the best things to think about, they are necessary. You may need to hire a lawyer and draft a will. You want to be prepared for the worst. All of these things will take a toll on your finances.

If you think that you may be ready for a baby, it is crucial to consider the financial implications before anything. Being financially prepared could make your experience as a parent much more manageable.