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There are many families that experience some level of concern around the issue of affording a new baby. With living costs rising each year while the average Americans’ savings is decreasing, it is understandable why this is an area of concern for many.

The introduction of a new baby raises numerous questions related to money. Will you need and be able to afford a bigger apartment/ home. How much will childcare cost? Can you afford to have your spouse not work for a period of time? How will you get by on one income alone?

The US Department of Agriculture estimates that the additional costs of having a child is approximately $8,060 per year. So, what should you do to ensure that this additional expense does not take away from your desire to embrace a new family member? Here are a few simple steps that you can take to begin improving your financial situation so that you will be as well prepared as possible for the arrival of "Baby."

The primary things to do are to cut and save. Wherever possible, cut back on your expenses. The minute you know that you are expecting another family member, begin to consider what "fat" can be cut from the family’s budget. You should also consider taking this opportunity to save that money in some type of investment vehicle for future or emergency use.

Eating habits:
Eating out can run you a pretty penny each week. If you are eating out three, four times a week, try cutting back to one. This may be a great time to experiment with cooking if you are not a natural chef. Buy yourself some cheap second-hand books that you can begin with. The Internet is also a valuable source of free cooking tips and information.

Entertainment:
How much does it cost for your entertainment each month? Do you withdraw spending money each week only to see it disappear on things you can't remember buying? A trip to the movies or video store can cost upwards of $20 per person; a trip to your local library costs nothing to check out books or videos. With a little extra work, you may discover your town has lots of free entertainment alternatives.

Clothing:
Although we would like our newest family members to get brand new clothing, this may not be a reality for a number of financial reasons. Quality, low-cost clothing can be found at community thrift shops or consider buying non-name brands. Does your toddler really need a $100 pair of Nikes he will outgrow in two months?

Credit Card Debt
Try to get this as low as possible while you and your mate both continue to bring in some dough. Once the baby arrives, you may be in a position to have to use some of these cards. You surely don’t want to be overwhelmed by high outstanding balances during a time where there is an additional person to provide for and in some cases, one fewer income.

Also, It might be a good plan to make higher monthly payments to those cards with a higher annual percentage rate while making lower payments to cards with lower rates. This will help you rid yourself of the debt sooner. Along these same lines, try transferring balances of the high rate card to the lower rate ones.

Save, save, save!
With the money you save by cutting corners elsewhere, open a money market account or other short-term savings vehicle. Since you may be forced to use the funds in an emergency, avoid placing the money in an account that has early withdrawal penalties.

The costs of having a child should not be as frightening as you think. With a good plan in place, you can minimize your expense and can take control of your savings.

To learn more ways you can financially prepare for the arrival of your new family member, contact one of our Financial Service Representatives at 407-282-6039 for a free consultation. Or click here to have a representative contact you. Don't let something like money get in the way of your welcoming that new bundle of joy into your home.

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