The arrival of a new baby is both exciting and economically overwhelming. A newborn can mean sudden changes and the main expense for new parents. How much money can you expect to spend on your little one in the initial year? Here comes the importance of opportunity investments. We’ll guide you on how to financially prepare for your family’s newborn before they arrive.
Let us start from scratch in many areas such as strollers, furniture, and cribs. And of course, there comes the one-time medical expense of delivering a baby in Kerala. As we’ll see, this amount is by far the hardest to cut down in any meaningful way. So, foreseeing these expenses it is wise to invest your money in the best investment opportunities.
The average cost for routine maternity care would be around one lakh, but this is largely variable by your location. A routine vaginal delivery ran an average of 30,000 in Kerala and cesarean delivery in Kerala holds about one lakh. Review your health care policies to find out what the additional costs are for prenatal care, test, hospital stay, medicines, and postpartum care.
The one-time investments for babies are as varying as the medical costs above, but for various reasons. This category can go up particularly relying on the wants of the parent. For example:
To go out, you will most likely want to buy a stroller, an infant car seat, a baby carrier, and a diaper bag. If you plan on being out for long, a compact playpen and/or bassinet may be helpful. Like many of the things on the list, there is a huge range of costs. Buying an adapter, a snuggle bug, and another option for some brands of strollers can be a huge price tag without taking in the expense of the stroller itself. On the other end of that range, a seat and stroller combo can still be purchased new for under 500, and used equipment can fill in for all the others. It is worth noting that, at the very least, it is worth purchasing a new infant car seat. There is no way to ensure a used one hasn’t been compromised in a prior accident or through constant use.
To keep your little prince or princess busy you may want to consider a compact swing, bouncy seater, play mat, jump seat. You may also want to have a crib or bassinet, crib mattress, basic bedding with blankets, pillows, changing table, tiny dresser, rocking chair, and a diaper pail. Again, this is an area where personal taste dictates cost. Unlike car seats, everything is for use at home, meaning that you can buy it second-hand or even use it through one of the many share groups you’ll find online. If you go all brand new, a crib will run at a less amount.
Once your baby arrives, the regular expenses to care for your baby kick in.:
Child Care: If both you and your partner will work after your baby’s arrival, your sole biggest budget item will be child care. Your child care costs differ by your location, the age of your child, how much care you need, and what type of care you use. The average cost of a nanny or other in-home care is around one lakh a year, but again that can be bigger or lower based on your location and so on. Keep in mind, though, some costs might be equalized by various tax credits, such as the child and dependent care credit. Be sure to confirm if you are eligible.
Necessities: Food, such as formula, clothing, and diapers make up most of the requirements in the ongoing costs.
Clothing: The average cost for baby clothes is about 200/- for the first year, but again this differs and is highly associated with income. Low-income families make do with less than half that amount while you possibly already know some parents who spend so much on a single outfit.
Diapers: Diapers also differ in cost. The average child will use more than 3500 diapers in the first year alone, which can add up to more than half of the cost. You can buy disposables for as low as 20/- with coupons or parents can pay 10/- per diaper to import them. A cloth diaper service will cost you around some amount a month and doing the dirty work yourself at home with cloth diapers will cost you anywhere a huge amount and up to get the materials needed upfront.
Food: Once solids start, plan on spending around a few amounts. The early food costs for children are relatively small compared to what you will see from a grown-up, but it can be a bit irritating.
Financial Tool to Consider
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