Many potential parents feel they're ready to take on the responsibility of raising a child, but the majority of new parents vastly underestimate the real costs associated with bringing up baby. A Redbook survey says up to 41 percent of new parents believed that in hindsight, they weren't as financially prepared to have a baby as they thought. One expense those parents failed to budget for were those involving the child's prenatal care and delivery. It's important to check with your health insurance company first to understand what you'll be responsible for covering out of pocket. Hospital visits for natural childbirth can cost up to $2,000 out of pocket, and Caesarean sections tend to cost more, with a lengthier postnatal stay. During pregnancy, expect monthly, and ultimately, weekly doctor visits as the due date closes in - those visits can add up when you consider copays each time. If you opt for hospital classes, such as Lamaze, or if you hire a doula, cha-ching. These can tack significant costs onto the hospital tab. A baby needs big-ticket equipment once he gets home, such as a crib, car seat - or two, if you plan for him to travel in each parent's car, high chair, stroller, and more.
Parents who participated in the Redbook survey also admitted to underestimating the financial impact that maternity or paternity leave would have on their household income. Decide how much time you can take off from work if you work, and take as much as possible. If you plan to formula-feed your baby, factor in that cost, plus the accessories like bottles and nipples. There's no guarantee that the baby will fit into newborn-sized clothing upon birth, so it's important to have a range of sizes on hand to fit him. Be prepared for the baby to grow out of his clothing every few months - some babies fit into a 3-6 month size at 6 weeks! So what's the answer? Ideally, you'll have all the answers before getting pregnant. But if not, sock away a bit of money, and try not to splurge on luxurious, big-ticket items. You can find great, gently used baby equipment and clothing online or at consignment shops for a fraction of their brand-new cost. Don't worry so much about "ringing" up baby - just do your best at bringing up baby.