Can You Afford a Baby?

June 12, 2008

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If you're of a certain age and life stage, then you might be asking yourself: Should I have a baby? Before getting carried away with visions of Baby Bjorns and onesies, consider this: Babies cost more than ever. According to the Agriculture Department, middle-income couples spend an average of $11,000 during the first year of a child's life. By the time that newborn reaches his 18th birthday, he'll have cost his parents around $204,000. (Creative solutions such as relying on grandparents for child care and swapping clothes with friends can help ease the strain.) Here is the Alpha Consumer quiz to help figure out if you're financially ready to become a parent:

Do you have $5,000 to $10,000 worth of savings in the bank that could go toward baby-related costs?
1. Yes
2. No
Could you live on around $1,000 less a month, the average cost of child care? If you or your partner plans to stop working, can you support your lifestyle without that second income?
1. Yes
2. No
Do you know the details of your workplace maternity or paternity policy?
1. Yes
2. No
Could you afford to add an additional dependent to your health insurance?
1. Yes
2. No
Do you have an emergency fund that would cover at least three months of living expenses?
1. Yes
2. No
Do you have life insurance and a will?
1. Yes
2. No
Would you need to buy a new home or car before expanding your family?
1. Yes
2. No

Explanation of score:

0 to 2 points: You may want to consider taking further steps to prepare financially for a baby.

3 to 5 points: You are on the right track, but additional planning could help ease the transition to parenthood.

6 to 7 points: Congratulations. You seem to be financially prepared to have a baby.

Did you know? Baby experts recommend saving up between $5,000 and $10,000 before giving birth to help offset some of those upfront costs, including child care, health insurance, and diapers. According to a survey by TheNestBaby.com, 61 percent of women who aren't pregnant or haven't had a baby yet are already saving for a future baby. Many first-time parents are also surprised by their workplace policies, including the cost of adding a new dependent to an existing health insurance policy. Of course, money isn't the only factor going into baby-making decisions, but planning ahead can reduce stress later.

Join a Discussion: How much money do you think it takes to afford a baby? And would you consider postponing parenthood for financial reasons? Our friends at BettyConfidential want to know.

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When my oldest, who turns 13 this month, was born, all I bought was diapers and food. The furniture, car seat, clothes, etc, were all either gifts or hand-me-downs. I kept all that stuff for her little sister. Now that they are both preteens, I say "no," a lot. Actually, I dont have to tell them no, because they know the value of a dollar better than I do and dont ask for much. (They still have more electronic devices and brand name clothes than their friends, so dont think they are suffering.) I spend about $200/month on food, $10/month on entertainment and field trips, $50 twice a year on clothes, $200/year on school tuition and supplies. I spend around $10/month in hygene products that I wouldnt have if I didnt have kids. My four-bedroom two-bath house costs $325/month, $75 less than the cheapest one-bedroom apartment without government assistance. I spend about $300 more per month to heat a house that size, but only 4 months a year. At that rate, my kids together will only cost me $124,800 from 1998 through 2017.

Stephanie of IN 3:24PM March 04, 2011

11K in the first year... does that include the hospital bills? Because there is no way we spent that because we didn't have it to spend!
Kids need shelter, food, carseat and diapers, maybe a few toys. You should have health insurance in place and know how much another dependent will cost you. You should always have an emergency fund regardless of having kids or not.
Childcare can be expensive that is very true, so see if staying home is an option (there are calculators out there that will tell you if you working instead of staying home is actually worth it dollar-wise).
As for expanding your home or car? One kid won't make much of a difference unless you own a two seater or live in a studio. Yes a two bedroom would be best and yes you will need a car with a backseat, but other than that, the kid doesn't need a backyard or a ridiculously decorated room.
People need to come to terms with what are needs versus wants.
I know you want your child to have everything wonderful and great, but you don't want your child to be saddled with a parent that is worried beyond belief about money and debt because they indulged wants and not needs.
So in short (haha) it's possible to have kids without making 100K a year, but at the same time be prepared. You can always find an excuse of why this year isn't the year to have a kid. But if you go for it and all goes well, you still have 9 months to get things in order!

MEL of AZ 4:19PM February 02, 2011

Having a lot of money doesn't mean that you will be able to bring a happy family or you will be able to do things for your child. Talking of five dollars or ten dollars , sometimes its not possible for some, but with little you have and the heart of loving and enjoying your family no matter how low your income is may bring a difference .It may sound little for some but for others survive even with less than a dollar and they bring up a happy family.It is not also right to look how people are doing things but to them in your right way and you will achieve.

elijah 2:42AM November 27, 2010

Can You Afford a Baby?

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