Money 305: Big Decisions – New Baby

Back To Main
Money 304: Big Decisions – Getting Married
  • If you intend to adopt, consider adopting from a different country to make the legality easier
  • Save more money as soon as you know in order to afford the baby expenses
    • Don’t try to buy a house or make any other major purchases
  • Research on the ways to streamline raising a child, since you will not have time once the baby comes
  • Don’t get tempted to buy new clothing for them
    • Within a year or two, they will outgrow it
    • Used baby clothes are outgrown far more than they are out-used
  • Bear in mind that many purchases you make for them are more for your own sense of happiness and not theirs
    • An expensive toy will fascinate a baby about as much as the box it came in
      • “Edutainment” consumer goods don’t work nearly as well as spending quality time with your child or exposing them to new places
      • Generally, the cooler and more interesting the toy, the more likely that the child is being spoiled
    • Many safety items are silly and for the emotional security of the parent more than for the safety of the child
  • Take advantage of the tax benefits of your child
  • Set up a college fund early on
  • Don’t buy a life insurance policy for the baby, since the only expense will be burial expenses
Next: Money 306: Big Decisions – Home Ownership