3 ways to budget for a baby

Estimated reading time
 5 min

Learn how to

• Assess your financial situation and see what you can do to save extra cash.
• Budget for all the baby items you might need, like nappies, bottles and beyond.
• Make a dedicated savings account to help you save more towards your goal.

From finding the perfect baby name to shopping for impossibly tiny clothes, there is a lot to love about welcoming a new member into your family.

But remember - each cute (and essential) item comes with its own set of costs. That’s why we’re here to help you map out your family’s financial future with our guide to budgeting for a baby.

1. Review your financial situation in advance

Getting ready to welcome a new household member? Start by wrapping your head around your current household income and expenses, to see what’s left over for baby planning. Our budget planner tool can help you highlight where you’re already doing well and in which areas you could be a bit more frugal when budgeting for a baby.

Look at how your income might change – It’s never too early to factor in any material income changes that will come along when your bundle of joy arrives. Start to ask questions like:

• If you plan to take extended time off, how will your household income be affected?
• When you return to work, will you go back to full-time or a reduced schedule?
• What are your childcare options and how much will they cost?

Make adjustments now – If you find yourself living pay to pay, then consider where small swaps can wiggle out some room for savings. Not sure where to begin? Our savings booster tool is the perfect thing to get you started. Changing your spending habits during planning mode can help keep you financially agile for when baby arrives.
 

 Quick tip:

Don’t forget to suss out any government supports that you or your partner (or both) might be eligible for.
 

2. Build a budget for having a baby

Budgeting is a must for any new or expecting parent, so begin by doing some research into just how much you’ll need to set aside before that stork lands on your front stoop.

Ask around – Speak with trusted friends or family members about their baby lists – you know that organised friend with an itemised ‘baby stuff’ spreadsheet? They’re probably itching to share it with you.
 

 Quick tip:

While you’re at it, see which items people you love can pass down to you. Babies grow so fast, so some of it will be hardly used. Score!

Factor in insurance and other medical costs – Remember that if a private health insurance policy that covers pregnancy and birth is part of your plan, then you’ll have to take it out twelve months before you or your loved one needs to make a claim. It’s also a good idea to budget for the different costs of medical appointments you might need before the baby arrives and when you give birth.

Expect the unexpected (when you’re expecting) – Life tends to surprise us, and kids really raise those unpredictability stakes. Whether it’s running out of nappies, a surprise doctor’s visit or needing to replace fuzzy bunny 12 times over (hey, it happens), there’s nothing worse than being unprepared for an unexpected expense. Luckily, building this into your budget from the get-go can be a gamechanger.

Consider the essentials before the baby arrives – Budgeting for the basics can be an absolute gamechanger when your little one arrives. Prepare well, and you’ll have most of the things you need to make your new bundle of joy feel comfortable at home. Here’s a basic checklist of some essentials you might need to budget for and buy:

• Bassinet
• Changing table
• Crib
• Nappy bag and nappies
• Bottles
• Car seat
• Baby carrier
• Blankets and swaddles
• Pram or stroller
• Baby clothes

Open a dedicated bank account to save for the baby – Opening a separate ‘having a baby’ savings account can give you a crystal-clear look at your finances. A separate account can help you by:

• Keeping your money in one spot with easy access when the time comes.
• Removing the temptation to dip your toes into the account and splurge.
• Reminding you of your bigger goal – you might even name the account something like, ‘Baby Fund’ to keep yourself (and/or a partner) on track.

3. Save with simple hacks when the baby arrives

There are some quick and easy things you can do before (and after) the baby arrives to save some extra cash:

• Browse op-shops and online marketplaces for one-of-a-kind baby clothes and cradles – they’ll outgrow them before you know it.
• If you do a lot of online shopping, then make a wish list on your favourite baby store – they might just see you there and send you a little discount code.
• Having a baby shower or birthday party? Make a baby item registry and add some of the essentials to the list.
• Where you can, buy some baby goods, like nappies or bottle feed, in bulk.
• Think before you buy – do you really need five different soft, fluffy bunny rabbit toys?

Don’t forget that you might receive gifts from loved ones too. It could be a good idea to wait before buying any non-essentials. Settle in once the bub is here, take stock of the gifts you received and then fill in the gaps.