Welcoming A Baby? Here Are Five Financial Planning Tips 

Having a baby is one of the most exciting and life-changing events you can experience. It is also one of the most expensive. According to a recent study, the average cost of raising a child in the US from birth to age 18 is $233,610, not including college tuition. That’s a lot of money to budget for, especially if you are a new parent or have other financial goals. 

Fortunately, there are some steps you can take to prepare your finances for welcoming a baby and reduce the stress of managing your money. Here are five financial planning tips to help you get started. 

Create a baby budget. Before your baby arrives, it is a good idea to estimate how much you will spend on baby-related expenses, such as diapers, formula, clothes, furniture, toys, childcare, health insurance, and so on. You can use online calculators or apps to help you with this. Then, compare your projected expenses with your current income and savings, and see how much you need to adjust your spending and saving habits. You may need to cut back on some discretionary expenses, such as eating out, entertainment, or travel, or look for ways to increase your income, such as asking for a raise, taking on a side hustle, or selling some unused items.