What every parent-to-be needs is a list of inspiring ways to assure them that their new little bundle of joy won’t suck dry the retirement fund. Well, I can assure you that you don’t have to be a millionare to raise a family comfortably. Here are the ways our family does it:
Tax Credits The federal government has created ways to ease parents’ burden via a tax bill signed into law in May 2003 that gives parents a larger tax write-off on minor children. The child tax credit is now $1,000 for each child under age 17, as long as family income is less than $110,000 (or $55,000 for single filers). Working parents might also qualify for the child-care tax credit, which allows them to deduct 20 percent to 35 percent a year of up to $3,000 in day-care bills for one child (with a cap of $6000), depending on income.
Travel System vs. Babywearing A travel system consisting of a stroller and rear-facing carseat to match can easily cost $300. Unless you have a generous family member, you will be buying this plus another carseat later, when the child is big enough for a front-facing seat. Instead, consider purchasing a top of the line convertible carseat that will go from rear to front-facing, and wear your baby in a sling or carrier instead of lugging him/her around in a bulky bucket seat. Baby will be closer to mom in an infant carrier, and you’ll save lots of money.
Breast vs. Bottle I cannot express how infinitely easy and cheap mothering is when you breastfeed. It’s incomparable to formula-feeding for more than just the nutrition factor – It’s free, always ready and always the right temperature. There are no bottles or bottle warmers, or other accessories to purchase. Oh and did I mention it’s FREE? Bottle-feeding, while very necessary for some people, has nevertheless become such a huge industry that unknowing parents-to-be often buy all the fancy accessories when they really don’t need them at all. The advertisements only lead you to believe that you do! Also, when baby is old enough to eat solid food, there really is no reason for most families to buy commercially prepared food. Baby should be able to start with mashed avacodos and other soft fruits, and then move on to food cooked well right off of the dinner table with the rest of the family.
Baby Shower gifts and family contributions can help tremendously, so if this is your first child then you need to prioritize what you really need from your shower to make the most of it. Let’s Talk About Creating a Shower Registry can help you with this. The rest of the baby gear that you need that didn’t get purchased for you can often be found in great second-hand condition on local lists like Craigslist or Yahoo Groups designed for selling and trading. Post an “In Search Of” (ISO) list on one of these groups and watch the responses flood in. You should NEVER have to purchase your own 0-3 month clothes if you know other mothers whose children have grown out of theirs. Often, parents-to-be end up with far too many in this size, and your infant will grow so fast that it will never be able to wear them all! Also, don’t buy anything until after the shower! Many baby things do not need to be purchased before baby comes because they won’t be used immediately. Our baby is three months old now, and we don’t yet use things like a crib, walker, or stroller (it’s too cold here in Michigan!).
Sposies vs. Cloth: For an in-depth calculation of the cost of the two diaper options, check out this article: $The Diaper Dollar$. To sum up the article, you will spend $2530 total to diaper your baby with nearly 7,000 disposables for her first 30 months. That’s an average of $84 per month or $.37 per diaper change. Average financial cost of purchasing cloth diapers over 30 months = $505.05. Cloth diapers that are home laundered will cost you $778.05 or 12¢ per change. A cloth diaper service will cost $2133.00 or 31¢ per change. Disposables run you $2530.00 or 37¢ per change. Depending on how many you buy and how you wash them, choosing cloth diapers can save you anywhere between $500 and $2,100 total. And that’s just for your first child- your subsequent children will be diapered for only the cost of laundering the diapers, as you can still use the diapers from your first.
More on Cloth I’ve mentioned these plenty of times before, and while they may seem very daunting to some, I assure you that they are easier than they seem. There are so many options to choose from that it’s almost fun to decide. Gone are the days of dangerous pins – most diapers these days are all-in-one and are just like disposables! Take the money that you saved during your pregnancy and buy yourself two days’ worth of cloth diapers (about 20 will do). If you are intimidated by all the options out there, get a newborn kit to help you try out different kinds. You will be able to return it for a partial refund when you’re done! When baby grows out of the cloth diapers, resell them for almost as much as you paid for them on eBay or another For Sale or Trade (FSOT) site. In my opinion, Fuzzi Bunz are the most versatile and functional for most babies, and have a great resale value. You aren’t polluting the environment, you’re only buying diapers once every three or four months, and you’re selling them back to make money to purchase more with!
These are just a few ideas, and it’s up to you, of course, to decide what works best for your family.
What do you do to offset the cost of a new baby? In what ways do you “cut corners”?
For ways to stretch your pregnancy wardrobe, check out Let’s Talk About Maternity Clothes