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BUDGETING FOR YOUR FIRST BABY

September 22, 2020

The birth of a child is a monumental life event. It’s a fresh take on life, a clean slate, and an eye-opening experience – especially if this is baby number one. A baby is life changing in many ways, but one of the changes is the change that comes to your budget and monthly finances.

Take a look at a few ways your budget might change once your baby arrives and a few things to consider along the way.

Saving money

A great place to start is how to save money with a new member in the family. For many, saving money might not come as easily with new expenses. The important thing about saving is to simply start. It doesn’t have to be a large sum - $25 each week of the year still adds up to $1,300 at year-end. Whatever the amount, it can serve as a much-needed cushion for those unexpected events. Of course, the more you put back, the more you have, but you must start.

Open a Renasant Savings account today.

New monthly expenses

As you plan your monthly finances, consider the new expenses such as insurance, doctor visits, diapers, formula, etc. Be sure to revisit your budget often, as different situations call for different ways of managing and paying for them.

Monthly stipend for clothes and toys

Spending on clothes and toys can add up quickly. Setting a limit on purchasing new items is important. Consider a stipend each month specifically for nonessential items, and try to stick to whatever amount you set aside.

Create an emergency fund 

Equally as important to general saving is saving for emergencies, especially with a child in which you are now responsible for. Bringing your baby home is a great day, but life goes on as well as the accidents and missteps that come with it. Whether it’s a branch that fell on the roof, unexpected medical expenses, or a new set of tires, it’s important to have savings to fall back on, so these emergencies don’t cause financial hardship. As above with general savings, the most important part of an emergency fund is to start, and avoid spending it for non-emergencies.

Managing a budget is achievable, even with a new baby. It’s difficult to plan for every little thing, but taking advantage of the steps above can put you on the path for sound piece of mind.