Getting ready to be a parent can be pricey, but there are plenty of ways to save. It’s important to have a personal finance plan in place that will help you meet the expenses of a big life change, now and in the future.

Here’s what you need to know about saving money and preparing financially for a new arrival and some baby money-saving tips so you won’t have to worry about your savings account.

How much money should you have saved up before having a baby?

According to The Bump, getting ready for a baby can set you back $10,000 or more, which covers things like:

• Nursery decoration, crib, and bedding
• Travel essentials, like a car seat, stroller, baby carrier, and diaper bag
• Indoor gear and toys
• Baby-proofing supplies, like a baby gate
• Changing and cleaning supplies
• Clothes and diapers

Baby supplies can really add up, but they’re not the only expenses you’ll need to consider.

Between prenatal care and delivery and adding an infant to your plan, health insurance can add up, so be sure to check ahead of time for additional costs.

If you or your partner plan to take family leave, you’ll also need a plan for making up the difference in income if you don’t have employer-paid leave.

Other costs to keep in mind include extra pregnancy and birthing services, like a doula or birthing coach, and childcare during the first year.

Out-of-pocket spending for labor and delivery can add up to more than $4,500 with insurance, a Health Affairs study found. And the average cost of delivery in an American hospital averages nearly $11,000. Costs will vary depending on where you live, the type of delivery, and insurance type. It also doesn’t cover birth complications or prenatal care.

Ways to save as a new parent

There may be a lot to think about when it comes to planning for a growing family, but remember, there’s no rulebook for what you have to spend.

Here are a few money-saving tips for expecting parents:

• Consider cheaper, long-lasting alternatives. Cloth diapers will last much longer than disposable ones and will help you save, even if they come with more laundry. Choosing a breast pump over formula can also help, and your health insurance company may even reimburse you or offer a low-cost rental.
• Buy used, borrow, or use hand-me-downs. Baby furniture, like highchairs or playpens, and toys are easy to find at thrift stores, garage sales, or in your own network. Ask family and friends if they’d be willing to pass on preloved baby clothes as well.
• Ask for essentials at your baby shower. Baby showers are a great way to bring family and friends together to celebrate your new arrival (even via Zoom). If you still have a lot to buy, ask your guests to stick to the registry you’ve provided or let them know your needs ahead of time.
• Turn to your network for childcare. Babysitting, mother’s helpers, and nannies can get expensive. Talk to your family about providing support for the first few months. And, if you still need help later, consider trading off childcare with a friend or paying a neighbor to step in when necessary.

How does life insurance save money long term?

As you plan out your baby budget, it’s also important to think about long-term protection for you and your family. Life insurance is designed to protect those you love financially if you die.

If you’re in prime child-raising years and don’t have any major health issues, buying a policy now can save you money and stress down the road.

Term life insurance, which offers flexible coverage for a specific period, is an affordable and popular choice for families. With Fidelity Life, a healthy 35-year old female with a full-time job and a partner can buy a 30-year term policy with $250,000 in coverage for just $30 a month.

As a new parent, that financial protection becomes even more important. You’ll want to ensure your growing family can pay off debts and cover day-to-day expenses if the worst happens. Talk to a life insurance agent about how you can expand your coverage or add a child insurance rider to your existing policy.

At Fidelity Life, we’re here to walk you through every step of the life insurance buying process and help you choose the right plan for your unique needs. Get in touch with us to talk to an agent or start your online quote today.

At Fidelity Life, our goal is to make life insurance simple, affordable, and understandable for everyday families. This content is intended for educational purposes only. Each post is carefully fact-checked, reviewed, and updated regularly to ensure the information is as relevant as possible.