Can We Afford to Have a Baby?

baby finance

“We are emotionally and physically ready to have a baby, but we are so worried about our finance. We are afraid we do not have enough money to support the ongoing cost of raising a child.”—- heard many times at gatherings with friends and families?

Financial commitment is the biggest concern for couple who want to add a new addition to their family. There is no right or perfect time to have a child, as long as you properly manage your family income and adjust your current lifestyle, you can have as many children as you want. Here are some questions you may want to consider before you get pregnant or during pregnancy:

For yourself:

  • How much money do I plan to spend on my maternity clothing?
  • Additional insurance for medical expenses?
  • What is my grocery budget each week?
  • Do I plan to breastfeed or bottle feed?
  • Do we need a bigger house?
  • When do I plan to go back to work?
  • How much childcare/after-school care would cost me each month?
  • Do I plan to stay home for few years until baby is older?
  • In case of emergency or unexpected expenses, how much savings do I have in my bank account?

For baby:

  • How much do you plan to spend on your baby’s equipment and supplies? (nursery furniture, car seat, stroller, baby clothing, etc)
  • Are you comfortable using used baby clothes, car seats or other related used baby stuff? (If yes, you can find many used baby stuff on kjiji or craigslist. MAKE SURE check the expiry date on car seat as your child’s safety always comes first)
  • Do I plan to set up an education fund for my baby?
  • Do I need to make a will?

Above are just some basic questions for new to-be parents to consider before their little one comes. Raising a child requires you to be financially stable as well as it needs a lot of your time and energy, but it is rewarding in many ways because nothing could be more precious than your baby.