Unless you are independently wealthy, you have probably felt a little panic over how you are going to pay for everything the baby is going to need. Dealing with the finances of being a father is stressful, but rest assured, you are not alone. Everyone comes to the point during pregnancy where they have a little bit of a panic attack while thinking about how much money they currently make and how they can make more.
Whether or not you are the sole bread winner in the family, it is imperative to talk to your wife about house hold finances before your child is born. Talking to your wife can help you both calm down and work out how to deal with bills and debt. Also remember that you do not need to be the sole bread winner in the family. While you are taking on more responsibilities around the house--i.e. cooking, cleaning, and taking care of the baby--your wife can also work to help bring in extra income.
There are many things that are going to need to be purchased before the birth; crib, stroller, car seat, etc. When you first go to a baby store and start looking at everything that is needed, you can start to feel a little overwhelmed. However, not all is lost; you need to take things in stride and realize that certain items take priority. While talking to your wife about the house finances, make sure you both know that while you want everything for the child, that may not be feasible. It is perfectly reasonable to get many of your baby's items from second hand stores or as hand me downs from friends and family. According to Kevin Nelson, you should "think twice before going into debt to buy a bunch of new stuff. If you do, you are doing a disservice to yourself and your child" (Nelson, 2004).
Debt
If you are currently in debt, that will be something that you will want to focus on paying down as much as possible before your baby comes. Paying a little extra now can help reduce the amount you will pay in interest later on.
Credit Cards
Money that you put on a credit card needs to be paid back, with interest. Just like other types of debt, it is a good idea to start paying down your current balance now. Paying down your credit cards now will allow you to have more credit available a few months down the road if absolutely necessary.
I agree, establishing financial stability is critical in every stage of a relationship, especially when a baby is on the way. If parents want to plan ahead by saving instead of relying on credit, how much on average should a family budget for a newborn?
ReplyDeleteThere are a few ways to make life easier on soon-to-be parents. One thing my wife and I have been doing is stocking up on diapers. This lets us spread the cost over a few months and gives us more leeway in the next few months. Also breastfeeding is a great way to lower the cost of food--not to mention the health benefits that are involved. As for an actual dollar amount to put into savings, that is all dependent on each family's financial situation and the help that is available from family members. But babies are expensive, and it is a good idea to start tightening your belt as much as possible now to give yourself a safety net further down the road.
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