1. Health Insurance. This is one area which is a HUGE concern. Yes, insurance can be expensive, but you will need it. You simply can not afford to cut this cost from your budget. You can reduce insurance costs by checking into HMO policies which have lower premiums and out of pocket expenses. Many states have free shot clinics which can help lower your expenses. If you can’t afford to carry insurance, see if your state has insurance for people in your situation. Many states will cover insurance premium costs if your income is under a certain level.
2. Breastfeed your baby, if possible. If you can’t breastfeed, there are ways to save money on formula. Try to apply for WIC (Women , Infants, and Children), a program designed to help middle and low income families with educational resources and food. You can also save money by buying formula in bulk, clipping coupons, and accepting free samples whenever they are offered. Check with your doctor to see if you can feed your infant a generic formula.
3. Diapers. Store brand disposable diapers can be just as good as the name brand, for several dollars less than their name brand counterparts. Experiment until you find a store brand that works for you and your baby. Clipping coupons also can help to lower diaper expenses.
4. Baby food. You can save a lot of money buy making your own baby food. You can use a blender or a baby food grinder to grind table food for baby. Simply put the puree into an ice cube tray and freeze. Then place the cubes in a labeled freezer bag. When your baby is hungry, you can microwave the food cubes.
5. Clothing. There is no need to buy expensive designer clothing for you little one. You can get most of your baby clothing at yard sales or second-hand stores. If you have a neighbor or friend with slightly older children, ask if she would be willing to send some “hand me downs” your way. Remember that many discount stores also sell inexpensive clothing.
6. Toys. Don’t feel pressured to get the latest and most expensive models. I remember buying expensive toys for my first child one Christmas only to find that she spent the entire day playing with boxes and wrapping paper. Kids don’t need a lot of toys; quality is more important than quantity.

What other suggestions do you have for reducing baby expenses?

Author: Michelle Schaefer

1. Health insurance
You should definitely get your health insurance in place before you get pregnancy so that you can make the most of your coverage. You will also want to make sure your coverage includes your prenatal, delivery, postnatal and new and well baby care. Know all the details of your plan. Research the deductible or co-payment that you will have to make at each visit and make sure you have your obstetrician or midwife listed as your primary caregiver, and interview pediatricians so that you’ll know who to list as your baby’s caregiver.

If you plan on delivering at home by a midwife, you will save the hospital costs, but you may have to rent some additional equipment in case an emergency arises. A home birth is normally not covered by insurance plans either.

Don’t forget to add your baby to your insurance policy after he born, or go to your state health department to see if you qualify for health insurance for your child. This plan will help you pay for all of the baby’s delivery and post-natal expenses as well as the numerous well-checks and immunizations required in the first year.

2. Get a will – or update your old one
If you already have a will update it to include your child and the name a guardian for your child and a trustee for her inheritance if something were to happen to you. If you don’t do this the court will name one for you and then divide up your assets according to state law. If you do not have a will create one as soon as you can in order to protect your baby’s rights.

3. Family leave
When you have a baby you will need to take time off from your job. If you are covered under the Family and Medical Leave Act you will receive up to 12 weeks of unpaid leave with continued health coverage. Also, the Federal Pregnancy Discrimination Act “prohibits an employer with at least 15 employees from reassigning you, forcing you to take leave, or refusing to hire you back because you are pregnant.”

For more information on this Act contact the US Department of Labor or the Equal Employment Opportunity Commission, 800-669-4000. You can also contact your state’s labor department for information specific to your area.

4. Child care
Are you or your husband going to be able to stay home with your baby everyday? While this is ideal, it is sometimes not a possibility. The cost of child care is very high, around $150 per week, plus more including taxes if you have a sitter or nanny come to your home.

Look into job-sharing, reducing work hours or working from home for part of the week. Many times you will find that with the cost of child care, it makes more sense to just stay home with your baby, than to spend all your money letting someone else raise them during the day.

5. Taxes
Although your expenses will increase with the arrival of a new baby, your tax burden will decrease. Currently families get $1000 a year in a tax credit per child which helps their total tax amount in the long run. There are different exemptions and special circumstances that can get you more as well.