Big Baby Bills?
Scott isn't sure how to budget for his upcoming bundle of joy. Dave has some great tips for him.
QUESTION: Scott and his wife have a good income and are expecting their first child. How do they budget for the child?
ANSWER: Babies don’t cost nearly as much as people act like they do. Your biggest issue is your grocery bill changes on formula and diapers. You’ll spend the first year at the pediatrician’s office and if you are smart, you’ll ask for samples of things and they’ll give them to you. You’ll spend money on doctor bills and formula and diapers, but none of that will break you.
There will be some budgeting stuff there, but it won’t send you into a tailspin. Unless you let them run your life, then they won’t really change your budget that much. If you make $15,000 a year, the bills will be huge, but making $100,000 it won’t rock your world. Daycare bills might also be substantial. It won’t, though, keep you from hitting retirement goals.