Tuesday, October 17, 2006

Planning on the Cost of Our Baby

So since this is our first baby, I guess I have been worrying about the cost, what things we need to get, and all kinds of other stuff. Well Kiplinger's Success With Your Money magazine has a great article on the costs of a new born and what to expect. The article is called "When Baby Makes Three (or more)"; I like to call it a bun in the oven. The article states that even though having your first child can be a financial shock, there are tax advantages and you do save money by spending more time at home with your child and with family. Your baby's first years can cost between $4000 and $6000. I guess it's time to cut out some of our luxuries and spending money going out. We've tightened our budget to get out of debt, but now it looks like we will have to do more. This doesn't include the price of having to move into a new house. I think we are okay for a little while. We have a small starter house, but an extra bedroom. Goodbye computer room :( . At least this will give us more than a couple years before we need a bigger house. The article says to make sure you have life insurance, health insurance, and some type of disability insurance. The news isn't all bad, there are some good tax breaks that I will get into in my next post along with some of the insurance info. If anyone has any advice or can give me some ideas of extra costs or ways to save money, I would be very greatful.