If you and your partner have decided to have a child, great! But are you prepared financially to welcome the new addition to the family? This article highlights the expenses associated with raising a newborn.
If your family has recently welcomed newborn or if you are preparing to welcome your child, you may feel excited. And why not, the next year will be filled with joy, happiness, loads of pleasant memories and a little stress.

One of the major causes of that stress is the financial strain that you may face with the coming of the new member. As a parent, you need to well prepared to tackle the baby expenses during the first few years of their growing up.

Being prepared in advance and knowing exactly where you are likely to spend the most during the first year of baby’s life will help in managing expenses efficiently. Let us look at the most common expenses that parents of a newborn incur:

Medical Expenses During Birth

One of the most important expenses that constitute a significant part of the newborn's life is the medical expenses during the birthing process. The medical cost not cheap at all and you must cater to the needs of both the newborn and the mother.
Besides, you must also take care of other medical expenses like the vaccination shots, and in case of a complicated birth, the child may need intensive care.

Health Care

This includes periodic health checks and medications. All of this can quickly add up to the newborn's cost. Make sure that you review your health insurance policy and include the cover for your infant’s medical needs.

Food

Although food is not a significant expense for the first few months at least as your baby will solely rely on breastmilk for 6 to 7 months at least, you may need to pay for the nursing clothes for the mother and a breast pump (if required).

Diapers, wipes and other vanity items

As your little munchkin grows up, be prepared to change the diapers at least four to five days day. Sometimes you may not have sealed the diapers before the tiny angel poops again. Don’t forget with every diaper; you would need a fresh baby wipe.
Furthermore, you would need special baby products like baby powder, baby soap, baby shampoo, baby body lotion and more.

Clothes

During the first year, your child will grow so fast that some of the outfits you brought for your loved one may not fit within a couple of wears. You need to have a few different pairs of everything right from socks to frocks and shorts to caps for different seasons.

Click here for your complete personalised financial planning.

DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



Trending Articles

Article Links

Financial Advisor

Recurring Deposit vs Fixed Deposit

What is Fixed Deposit

What is a Credit Score

What is a Savings Account

Latest Articles

abc-of-personal-money
abc-of-personal-money

What is Credit Card Balance Transfer and How it Works?

Read More
Posted on 19 March 2020
abc-of-personal-money
abc-of-personal-money

What is a Virtual Card and its Benefits?

Read More
Posted on 19 March 2020
abc-of-personal-money
abc-of-personal-money

A Woman’s Guide To Becoming Rich

Read More
Posted on 05 March 2020

Featured Articles

image abc-of-personal-money
abc-of-personal-money

Are Millennials Any Different When It Comes To Planning Financials?

Read More
Posted on 05 February 2020

Relevant Articles

image abc-of-retirement-planning
abc-of-retirement-planning

What is PRAN (Permanent Retirement Account Number)

Read More
Posted on 27 March 2020
image abc-of-retirement-planning
abc-of-retirement-planning

Key Highlights in Transferring Your EPF Balance to NPS

Read More
Posted on 25 March 2020
image abc-of-retirement-planning
abc-of-retirement-planning

Why Ignoring to plan for Retirement can be Financially Damaging?

Read More
Posted on 25 March 2020