While I'm on vacation, I'm re-posting some older Alpha Consumer entries that still apply today.
From June 12, 2008:
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:
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.