Although the old maxim, “Two can live as cheaply as one” is almost true, adding a baby-and-that-makes-three means it’s time to pitch your old budget (you better have had one!) and make a new one. Shocking how such a tiny little human can inspire parents to burn through such a large amount of cash.
Budgeting for the Absolutes
There are all kinds of new scenarios to consider as you sit down to prepare your new family budget. Right off the bat, it’s time to reconsider that health insurance savings account. Sure, as a couple you had very little need for doctor visits—you’re young and healthy. But the costs involved in maternity care were but a small foreshadowing of greater costs to come. Now that your baby has arrived, remember that doctor visits will happen quarterly accompanied by expensive immunizations. Project out 15 years and picture braces, camp physicals, and appendicitis; best to start budgeting now for family related health costs. Your new family budget should also include such items as future education costs, family vacations, and the inevitable SUV.
Wants versus Needs
The eternal antagonism between wants versus needs does not need to be perpetuated when you sit down to do your budget. Once you have listed all of the absolutely-we-have-to-pay-for-these items, you can calmly determine what you want and what you can afford. If you have not mastered the art of debt free living, now is the time to adopt its peaceful ways. Get creative about new clothes, toys, and entertainment. Invest in a zoo or children’s museum membership. Join a clothing swap or gardening co-op. Or plant and grow your own veggie garden yourself. Utilize your library card and community resources. Learn what’s out there that’s free and fun. With all of that creativity you have saved yourself a lot of money and can now afford more of those wants.
Spend some time together talking out your financial and family goals. Now put those plans into action by building a new family budget.