How to prepare your finances for a newborn - WMC Action News 5 - Memphis, Tennessee

How to prepare your finances for a newborn

(Source: CNN) (Source: CNN)

(WMC) - Babies are expensive, but don't let that scare you away from having one.

According to the Department of Agriculture, the average cost for a middle income couple to raise a child for 18 years is about $250,000 and that does not include the cost of college.

Financial advisors say there are a few ways to tell if you're financially ready for the cost of a newborn.

-Determine if you need to make any changes at your job. Can you take your child to work? Will you need to stay home or get a daycare service?

-Track your income and know how much you're spending now. See where you can make changes--like finding cheaper rent or getting rid of cable.

-Add up baby costs like hospital, car seat, food, diapers, maternity clothes, etc.

-Add up the cost of life and disability insurance for your child.

Once you've got an idea about the budget you'll need to live on once you're baby arrives, go ahead and start following that budget. That will help you build up a savings cushion and get used to your new lifestyle.

 

Copyright 2014 WMC Action News 5. All rights reserved. 

 

Powered by Frankly