Being prepared before you get pregnant is definitely an advantage but realistically that doesn't happen! It's okay - you have about 9months to prepare for the little one. That may not seem like a lot of time but you can achieve many things in a short time. I knew we would be alright financially, my boyfriend has a good job and we planned the baby at the right time :)
Adriana was only a few months old before we opened an RESP (registered education savings program) for her. She also has her own savings account in which we deposit money into every month and then transfer that into her RESP every few months. Best Thing You Can Do For Your Baby!
It can be a little daunting trying to figure out what you will need for the baby or even how much! Every baby is different so of course your expenses will be different from others. You can estimate your baby budget by using the Baby Cost Calculator. There may be somethings you didn't think of in there and some things you might just have to guess at for now! It will at least give you an idea of how much it will cost in your first year. It will also give you some things that you'll have to look further into as well - like day care, disposable or cloth diapers, breast feeding or formula, etc - these factors can sway your budget so be sure to weigh out your options for each. Perhaps get Dad-to-be to sit down with you and do this together. He may have some different ideas or suggestions than you.
Make sure to take into account your NEW income when budgeting. In Canada, we are entitled to 55% of your total net income. Most parents forget about this and end up pushing themselves further into debt! Avoid this common mistake and just be prepared. I am not shy to proclaim my love for "Til Debt do Us Part" TV show. Gail is blunt and all about progress! Many times that I've watched the show it was about new parents who are sinking in debt with a newborn. Read her article on preparing for a baby here.
Many new moms stay home for that first year and return to their jobs in order to bring in more money. Some times this is necessary with the increasing costs of food, childcare, gas, insurance, etc. It makes sense for most families. What if you want to stay home? Have you done your research to figure out if you can afford it? Perhaps you've looked at alternate ways to make an income from home. What ever you have decided - make sure you're ready for it. Again, I refer to Gail's article on being prepared to stay home with baby. She brings up some great points that I didn't think about!
Being prepared is the best thing you can do for yourself and your family. If it's in the cards for you to stay at home and still be financially secure then take advantage of it! I am working towards being able to stay home with Adriana - working from home. Otherwise, I will need to make more than $2000/mth in order to just cover daycare and food costs. If I am able to stay home, we eliminate the cost of daycare (saving over $1200/mth) which to me makes more sense. However, my boyfriend works in construction (seasonal) so the winter months can be difficult and now that we have a baby it will be harder. Remember to take your time and consider all factors before deciding. Talk to other moms, or friends, etc about different ideas that will work for you. You never know what sort of connections or ideas people have!
Have you started your baby budget?
Are you planning on returning to work or staying home?
Have you started an Education Fund for baby?
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