The Itsabelly Blog

How Not to Break the Bank When Budgeting for a New Baby

As seen on AM Northwest's Television Program

See Video Link: AM Northwest TV (Budgeting for Baby, 1/31/08)

You're excited about the bundle of joy that's going to join you in nine months.  Now, you want to make sure you don't break the bank by doing all of the right things to budget for baby's arrival.  Based on an exclusive survey of 1,000 new moms from Babycenter.com in 2007 they estimated it would cost $7,542 on average for baby's first year.  This amount does not include medical costs which is another $7,600 on average according to the Federal Agency of Healthcare Research and Quality.  No doubt that you want to spend your dollars wisely once baby's here!

TIPS ON HOW TO MAINTAIN YOUR FINANCES:

• Build your budget, track expenses & revise as needed - make sure you know what funds are coming in and what is being spent so you can budget for baby accordingly
• Find out what your health insurance covers - review your health coverage including deductible and determine what your hospital bills will be when baby is born
• Get out of debt (credit cards first) - credit cards with a high interest rate are worst at draining your funds so pay them off!
• Determine if a stay at home parent vs. daycare is feasible - sometimes staying at home with baby verses paying for daycare is less expensive
• Check to see if your employer offers a healthcare or dependent care flexible spending account - you can save money on a pre-tax basis and reduce your taxable income
  
• Start a college savings plan - 529 plans allow you to save money now toward college costs and the earnings will not be taxed as long as it's spent on college related expenses.  Check out College Savings Plans  for more information.
  
• Meet with your accountant to see if you qualify for child & dependent-care tax credits.  Adjust your tax withholding to show a dependent child which will give you a larger paycheck
• Draw up a will (name your baby as the beneficiary and also name a guardian) and make sure your life insurance coverage is adequate (two-three times your family's annual gross income)
• Make sure you have an emergency fund set aside - financial experts say you should have at least three to six months in cash incase you lose your job or the unexpected happens
• Don't overspend your budget on "nice-to-have" baby gear - be wise and don't waste money on the extras but focus on the necessities like diapers and a car seat
• Buy consignment or recycled baby items & use coupons - save money & recycle by purchasing second hand baby items like a stroller or baby clothing. Use coupons to save money on diapers or baby's toiletries.  

Great Budgeting Website Resources:

Baby Center
Practical Money Skills
College Savings Plan

Health Insurance Consumer Assistance:

• National Insurance Consumer Helpline (800) 942-4242
• National Insurance Consumer Organization (703) 549-8050

A Healthy Home for Baby & Family (download your free guide)

 

Heidi Murkoff, author of What to Expect When You're Expecting with Sharon Mazel has written a great guide titled "What to Expect Guide to a Healthy Home".  It's filled with easy tips to keep your house clean and free of germs.  What a perfect time to start thinking about how to keep germs and bacteria away!

In a season where the cold, flu and sniffles from little noses are rampant this guide gave me some practical ways to make sure I keep my family healthy.  Some of the tips that stood out for me were:

• Sponges and washrags in your kitchen are prone to bacteria so wash them in the dishwasher every night or place them in the microwave for 30 seconds to nuke the germs.  Better yet throw them out every month & replace.
• For baby's bottle and pacifiers you don't need to buy special machinery to sterilize them.  Use the dishwasher or boil them in hot water.
• For your children's stuffed animals you can put them in a ziplock bag and freeze them overnight to kill germs.  Or you can throw washable toys in the washer with hot water & soap every week.
• Wash your hands with soap and water as often as you can - this is the #1 way to stop from spreading the germs and viruses.  "Research shows that simple washing can reduce the number of infections in children under the age of five by more than 50 percent!"
• Bleach and water solution is a great way to disinfect your bathroom and any part of your house.
• When looking for a daycare center ask them how often the kids wash their hands, how often the toys are cleaned, how often the bathroom is cleaned and how many kids are in the daycare at one time.

I found everything in this guide to be really helpful and also reminded me of things I should be doing on a regular basis to keep my family out of the doctor's office.

Heidi's guide is a perfect resource to keep at your finger tips.  Click on this link to download your free copy  What to Expect Guide to a Healthy Home

How to Find a Good Babysitter

During the holidays being invited to a special event is inevitable so you'll definitely need to find a good babysitter if you don't have mom to help out.  So, if you're a new parent how do you find the best babysitter to take care of your children?  Here are some tips to help you find someone you're comfortable with and trust.

Babysitter Basics:

• The prime age for a babysitter is between 14 and 16 years old but you can find experienced sitters through various networks.
• Have a back up list of babysitters because a good one becomes very popular.
• Leave an emergency phone number list (doctor/hospital info, include a neighbor, friend or relative's number incase they can't get a hold of you directly).
• Leave a list of anything your child is allergic to, their routines and meal times etc.
• Check in an hour after you leave the house to see if your sitter has any questions.

Recruiting a Babysitter:

• Ask Around - Ask neighbors, friends, other moms if they know of a good babysitter
• The American Red Cross does not provide certified babysitter referrals however parents have several options to locate a babysitter in their area:

-  One option is to locate the nearest Park and Recreation center and ask if parents can post a notice looking for sitter. 
-  A second option is to take out a personal ad in the high school newspaper at the school located nearest you.  Check with the career counselor as parents can often place a notice on their job board.  Sometimes, this same option works well at the middle school level.
-  A third option is Sitter City. Parents can look at the number of sitters registered in their zip code area for free; but it will cost the parent to access the sitter information.

• Check Ads - Babysitters post ads on community boards in churches, libraries and sites like Craig's List
• Post an Ad - Use sources like Craig's List, Sittercity.com or go to your local college/university and post on their job opening board
• Prepare for the Interview - prep your list of questions.  Run a background check if the sitter has professional experience as a nanny.  Do reference checks.
   
• Arrange a meeting or practice babysitting session with the sitter and your children

Keeping a Good One:

• Be Flexible - try booking your sitter on off hours (eg. instead of a Saturday night do a Sunday brunch)
• Give Your Sitter Advanced Notice - No one likes to be asked last minute to do anything so be respectful and plan ahead
• Make Sure You're Paying Competitively - Don't nickel and dime your sitter.  Make sure you know the going rate and pay accordingly.
• Prepare for Your Sitter - leave your children's pajamas out, outline the bedtime ritual and offer snacks to the sitter.
• Return Home on Time After Your Event
   

RESOURCES

Great Books for Babysitters & Parents:

• The Babysitter's Handbook:  The Care and Keeping of Kids, by Harriet Brown, American Girl, 1999. Friendly, informative guide, particularly for younger beginners.
• The New Complete Babysitter's Handbook, by Carol Barkin and Elizabeth James, Clarion Books, 1995. Covers all aspects, including finding jobs and techniques for feeding, playtime, bedtime and more. Also covers newer ground, such as respecting a family’s values and children’s rights, as well as problem situations with parents.
• What to Expect Baby-Sitter's Handbook, by Heidi Murkoff, Workman Publishing Company, 2003. From the co-author of the popular “What to Expect” parenting series comes this practical guide covering feeding, first aid, time-outs, sibling disputes and more. Plus 61 of the most common questions babysitters ask.
• American Red Cross Babysitter's Handbook
  

Organizations

• The Redcross (offers CPR, First Aid, Babysitter certification course)
  
• American Safety and Health Institute (CPR, First Aid Courses)