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Baby Bill Blues: How Moms Save Money

Here’s a stat that’s sure to make your jaw drop: It costs a middle-income family $250,000 to raise a child from birth to age 17—college education not included. Whoa! That’s a lot of money, but there are ways to save. Here, we share advice you can really use to help get a leg-up from the very beginning.

What You Need: Now

Food

Whether the food comes in the form of breast milk, formula, or solids, babies eat a lot. And while the former is free, the cost of the latter two can add up quickly. “I never knew a baby’s appetite could rival that of a teenager’s!” says Christine McDaid, a mom of two in Fort Meade, Maryland, who spends $140 a month on food for her four-month-old.

How to cut costs? Coupons and bulk purchasing can help out significantly, whether you’re buying formula or rice cereal. “Formula companies are really good at giving out some amazing coupons—and a lot of them. They’ve helped me save close to $75 per month,” says Emily McCleese, a mom of three in Port Richey, FL. Fortunately, finding these money-savers is easy, especially online. Try sites like earthsbest.com, momsview.com, and babycheapskate.blogspot.com.

Diapers

You knew your baby would need them—but many moms still say diapers are a huge unexpected cost of raising a newborn. “I was given several Target gift cards at my shower and have often used those for diapers—but that’s not what I had planned to use them for!” says Heidi Lassila of Negaunee, MI. Diapers for her six-month-old currently run about $40 a month—a number you might be able to slash even further by opting for eco-friendly brands or being diligent with coupon clipping (we love Earth’s Best’s Chlorine-Free Disposals; find coupons here)–but Lassila is planning to cut costs by switching to cloth diapering once her family moves into a house (it would be too difficult in their small apartment, she says).

What You Need: Short-Term

Childcare

Whether you have a job outside your home or not, childcare comes with a hefty price tag. When both parents work, a large portion of one income usually goes straight to daycare tuition, as is the case in Jessica Nellen’s family. “Childcare is by far the biggest expense after having a baby. We’re putting about 43 percent of my take-home pay towards it,” she says.

Some ways to help you spend less: Share a sitter with a friend, or offer to offset costs by doing work for the daycare center or childcare provider (like helping with billing or cleaning on Friday nights). And if your work schedule is flexible, consider joining forces with other parents and rotate childcare duties amongst the group.

One thing to note? Being a stay-at-home mom isn’t necessarily cheaper. While nixing nursery costs might result in one less baby bill, it usually means getting by on just one stream of income. “I stay home full-time with my children while my husband is the breadwinner. Money is tight—and we go without a lot of things like vacations and eating out,” says Danielle Santinella a mom of one (with another due next month!) from Middletown, NY.

Gear

From clothing to toys to strollers to furniture, babies need a lot of stuff—but it doesn’t have to cost a fortune. When it comes to gear, “kids are as expensive as you want them to be,” says mom Ashley Rodriguez of Independence, KY.

Case in point: Rebecca Tuma estimates all the baby stuff for her newborn cost nearly $3,000 (much of which, she points out, was received as shower gifts). On the other end of the spectrum? Emily McCleese estimates she spent only about $600 on all of her baby’s necessities by mostly shopping yard sales, thrift stores, and consignment shops. For McCleese, bargain-hunting literally paid off: “Saving all that money allowed us to spend more on some new items, like a Boppy or swinging chair,” she says.

Other moms shared similar enthusiasm for buying used. “I would much rather use a hand-me-down item that’s in good shape than pay the money for something new that’s going to work exactly the same,” says Heather Lassila. How to know what’s safe? Used clothes always get the green light (after washing, of course), and like-new items such as cribs, furniture, and toys may be okay provided they meet current safety standards and/or are coated in lead-free paint. What’s more, you can check cpsc.gov to see if an item you’re thinking of buying or borrowing used has ever been recalled. The one exception: Car seats, which should always be purchased new (used models may have sustained damage, making them unsafe for your baby).

Or, you could just nix buying all together. “Newborn clothes, to me, are a waste to purchase—we just borrow then pass on to the next in need!” says Trinity Cho, an American mom of two currently living in Germany. Check out websites like swapbabygoods.com, freepeats.org, which help parents swap baby items they no longer for ones they do. However pressured you might feel to outfit your newborn with all the latest gear, remembering Lassila’s sentiments will probably save you a lot of stress (and cash): “Just keep it simple. Babies need love and attention way more than they need the latest gadget!”

What You Need: Long-Term

College

You may not even have given preschool a thought yet, let alone college tuition—but it’s something you should consider sooner rather than later. “Most experts advise parents to start saving for college as soon as their child as born, or at least within the first two year’s of their child’s life,” says Taryn McCarthy, CMFC and product specialist for The Hartford’s college savings department. Want specifics? McCarthy recommends initially aiming to save at least $50 per month, then adjusting the amount annually according to household income changes and inflation. Can’t stash away quite that much? Find small ways to pocket extra cash, like borrowing DVDs from the library instead of buying or renting. $15 each month is better than $0! Another option: 529 savings plans can often be opened directly through your state, and offer income tax benefits. Best of all, the monthly contribution can be as low as $10 (find out about a plan for you at smart529.com). Finally, you can figure how much your baby’s tuition will cost by the time she graduates from high school, check out the College Board’s college cost calculator.

But the ideal and the real don’t always match up. While many new parents have considered future college costs, they simply aren’t in the position to start saving. “We’re still working to get out of debt ourselves,” says Heather Lassila. Fortunately, when it comes to education, there’s plenty of help to be found. Danielle Santinella’s in-laws have started a college fund for her children, while Trinity Cho encourages family members and close friends to contribute to her baby’s college savings in lieu of traditional holiday gifts. Finally, don’t forget the opportunity your child will have to apply for scholarships, grants, and other forms of financial aid.

Life Insurance

Thinking about life insurance can be scary, but it’s important nonetheless. Should something happen to you or your partner, it will ensure your family can maintain their standard of living, as well as keep future plans like college or retirement on track. What’s more, policies aren’t just for parents who work outside the home: “Childcare, transportation, cleaning, cooking, and managing a household are all important tasks, the replacement value of which is often severely underestimated,” says Marvin Feldman, president of the Life and Health Insurance Foundation for Education (LIFE).

How much insurance should you have? Anywhere from 15–20 times your annual income, advises Feldman. Yikes! That sounds expensive, but consider this: A healthy 40-year-old woman can get a half million dollars in coverage for less than a dollar a day. In other words, there are plans for every budget. You can learn more about different options, plus check out savings calculators, at lifehappens.org.