Money 305: Big Decisions – New Baby

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Money 304: Big Decisions – Getting Married
  • 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
      • Babies don’t take much room, especially when they’re newborns
  • Research on the ways to streamline raising a child, since you will not have as much time once the baby comes
  • Like weddings, the baby industry is filled with useless things that are completely unnecessary
    • The cheapest crib is a Play ‘N’ Go, which converts from a bassinet to a crib and often includes a changing station
    • Educational toys and media are completely unnecessary for a child’s healthy development
    • In fact, great parenting comes from spending more quality time with them than anything else
  • Don’t buy new clothing for them
    • Within a month, they will outgrow everything they wear until they’re over a year old
    • Used baby clothes are outgrown far more than they are out-used
    • When their shoes get too small, put on three pairs of socks, put the shoes on and blow dry them for 10 minutes to make them fit right
  • 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
  • Save money on a baby monitor by either having them sleep in your room or using a smartphone video chat app
Next: Money 306: Big Decisions – Home Ownership