Having a new baby is an exciting time. But every family needs money for a baby, which can create stress. Many new parents experience sticker shock when pricing out some essentials such as strollers, formula, diapers and so on. And there’s a dizzying array of accessories, add-ons and paraphernalia that may seem like must-haves to new parents.
When charting a budget for a new baby and for the first year of a child’s life, the price tag of all the furniture, necessities and accessories can climb so high that many parents wonder how anyone does it. The truth is that few parents spend full retail price when buying baby gear; instead they find deals, shop smart and save money for big-ticket items. Here’s how.
Ask Your Friends and Family Questions—and Accept Their Offerings
When shopping for a new child, one thing that strikes new parents is the sheer number and variety of items there are. For instance, parents will likely use baby wipes for the frequent diaper changes that a baby needs. Having quick access to wipes can make all the difference. So parents may want a baby wipe dispenser. But does the dispenser need to be motion-activated? Does it need to keep the wipes warm?
These are the kinds of questions that emerge around just one item on the shopping list for a newborn. And the website for the heated, motion-activated baby wipe dispenser will do its best to convince parents that it’s essential to their child’s well-being.
Ask a friend or family member with a kid or two, and they’ll tell you that the wipes usually come in packs with little openings that make them easy to retrieve—even with one hand, in the dark, on a half-hour’s sleep. Or they’ll know of a particular dispenser that saved their lives during the first months of their own child’s life. The point is that these people in your life know what you need and what you don’t. They can save you a lot of research time, and potentially a lot of money.
Of the things you need for the first year of your child’s life, you won’t need many of them after that. This is true of parents everywhere, who may see your upcoming bundle of joy as a chance to clear the baby clothes, toys and furniture out of their own attics, closets and storage spaces.
Hand-me-downs can extend to high-dollar items like strollers, baby carriers, cribs and car seats. And it’s easier than ever to find local parents on message boards and in social media groups. They’re often eager to help neighbors who are in the same place they were in not long ago, especially if it means they can get the stuff out of their house.
That’s not the only way to trim your baby budget. Here are ways to save on some of the bigger line items in your baby budget.
How Can I Save on Baby Formula?
Even families who breastfeed their newborns may need to supplement breastmilk with formula. Other parents rely on it for all their baby’s nutrition in those first weeks and months. And formula, unfortunately, isn’t something parents can cook up at home.
While there are several brands to choose from, parents may find their baby prefers one over the other. And babies can be fickle. That’s why it may not be smart to buy too much of one formula brand at a time. But the main way to save on formula is to opt for powdered formula, rather than the premixed bottles. While the premixed bottles are highly convenient if you’re on the go, the extra cost adds up quickly. To save money (and time), buy in bulk once your baby decides on a formula they like.
How Can I Save on Breastfeeding?
This may be a head scratcher because breastfeeding seems like the most natural thing in the world. But most mothers usually need a breast pump. It allows mothers to pump and store their milk for later use. But they aren’t cheap. And they vary widely in price, size and portability. They also require regular purchases of bags, containers, parts and related accessories.
While the breast pump you choose will depend on your lifestyle and budget, there are ways to save on any pump. You can pay for it with a flexible savings account (FSA), which you fund from pretax dollars. (Click here to find out if you qualify.) Better yet, you may also be able to have the pump paid for out of your health insurance, depending on your policy and what pump you want or need. Call your insurance provider to see what your options are.
How Can I Save on Diapers and Wipes?
While there’s no way to get around a baby’s need for diapers, you do have options. For parents who want to go green, and who have the time to put in, cloth diapers are one way to save money. These parents may also want to consider the less-labor-intensive option of hiring a cloth-diaper cleaning service. But those prices can quickly add up, with one New York-based diaper service charging $36–$54 for its service.
Most parents opt for the relative ease and convenience of disposable diapers and wipes, which also add up over time. Shop around to find the best place to buy diapers in your area. Buying diapers in bulk is another way to save, as is a subscription. The risk is that the baby is always growing, and you can wind up with too many diapers that no longer fit your child. Other tricks of seasoned parents include staying with smaller (and cheaper) diapers for as long as possible and changing diapers less frequently (only if the baby will let you get away with it).
How Can I Save on Baby Clothes?
This is one area where family, friends and online parent groups can save you a lot of money. You may not like every piece of clothing you get, but those early months are more about comfort and convenience (think zippers instead of rows of buttons), than style.
On the whole though, one key way to reduce your budget is to stay basic and avoid brands. The clothes will only fit your child for a few months at most. Most people don’t look at the labels when they look at your baby. Another way to save is to buy clothes a size or so too big, so you get more use out of them as your child rapidly grows.
How Can I Save on a Stroller?
A top-of-the-line stroller can cost almost as much as a used car. But the stroller you choose should depend as much on your lifestyle as your budget. If you’re taking your baby for a quick walk around a suburban block, you may not need the same stroller as someone who needs to travel via the subway. And many families have to purchase more than one stroller for different needs. It pays to try out as many as you can, either with friends and family or in a showroom.
With a stroller, it’s worth considering all options to save a few dollars—putting it on your registry, seeking out used options and putting out a call on the local parents’ boards. The fact is that strollers take up a lot of space, and kids outgrow them. So there’s a good chance you’ll find someone who’s ready to let theirs go for cheap or for free.
Can I Save Money on Taxes With a Baby?
One benefit of kids is being able to claim them as dependents. Make sure that you take advantage of that, as well as other tax benefits and exclusions for kids. Depending on your income, you may also benefit from other governmental programs for new families. Regardless of your income, though, the tax and other benefits can potentially save you a lot of money.
How Can I Save on Child Care Costs?
Child care is one of the highest costs that most parents face. But there are tax benefits that can help you reduce it. For starters, you can put FSA dollars into a dedicated account for child care expenses. It’s not likely going to be enough to cover all your full-time daycare costs, but it can be a big help. Also, look into the Child and Dependent Care Tax Credit, which can help you write off a portion of your child care expenses.
It also pays to do your research, and to sign up for the child care service or daycare center you want early, up to a year before you’re ready to enroll your child.
Remember to Pay It Forward
As mentioned, the budget-friendly solution for many of your baby’s needs—clothes, furniture, strollers and other key items—may depend on your friends, family and neighbors. It can be a huge help throughout the early months of your child’s life. So take care of the new and used items your child uses, and be ready to repay the favor by helping out another new parent down the road.
Colin Dodds has written for preeminent media and financial companies. He is the author of several acclaimed books, including Ms. Never and Watershed. He lives in New York City with his wife and children.