Baby on a budget: How to save money with a new baby

Congratulations on your new arrival! As you navigate the joys of parenthood, you're probably also noticing how quickly those tiny humans can drain your bank account. Diapers, formula, clothes that are outgrown in the blink of an eye - the costs add up fast! But don't worry, with a little planning and some savvy shopping strategies, you can keep your budget healthy while providing everything your little one needs.

How much does a baby cost?

Before we dive into the saving tips, let's address the elephant in the (diaper-filled) room: how much does it really cost to have a baby?

The answer, unfortunately, isn't straightforward. It depends on factors like where you live, your lifestyle choices, and whether you're opting for cloth or disposable diapers (more on that later!).

However, to give you a general idea:

• Average cost of baby items: That first year cost includes big-ticket items like a crib, stroller, and car seat, as well as ongoing expenses like diapers, wipes, formula, and clothes. Think $7,000 to $15,000. 

• How much are diapers monthly? Depending on the brand, size, and how often you change your baby, you could be spending anywhere from $500 to $930 for your first year of diapers. 

• Cost of formula per month: If you're formula feeding, be prepared for a hefty monthly bill. The cost can range from $150 to $250 per month, depending on the brand and your baby's needs.

• How much does it cost to have a baby? At the hospital, this includes prenatal care, delivery costs, and hospital stays. In the US, the average cost for a vaginal birth can be upwards of $10,000, while a C-section can cost significantly more. Check your health insurance benefits carefully, and don’t be afraid to negotiate with the hospital when you can. 

Feeling overwhelmed? Take a deep breath. Here are some practical ways to save money without compromising your baby's well-being:

1. Budgeting for a baby

No need to wait until the stork comes! Start early to create a budget and manage your finances with a new baby. If you're planning to return to work, childcare costs can be a significant expense. Start researching childcare options early and factor those costs into your budget.

Track your income and expenses, and identify areas where you can cut back. Consider using a budgeting app or spreadsheet to stay organized.

Once you’re ready to start buying things, take it slow. It's easy to get caught up in the excitement of buying cute baby clothes and gadgets. However, it's important to prioritize your baby's needs over wants. Focus on essential items first, and then consider adding non-essential items as your budget allows. And if you’re going to have a baby shower, you might already get some of those fun items from friends and family. 

2. Embrace secondhand

Babies grow out of clothes so quickly. You might pull a cute outfit out just to realize it’s too small already! Don't be shy about accepting hand-me-downs from friends or family. You can also check out local consignment shops or online marketplaces for gently used baby clothes at a fraction of the price. Then make sure to circle back and sell your own things once your baby has outgrown them! 

Beyond clothes, you can find amazing deals on baby gear like strollers, cribs, toys, and high chairs at thrift stores and consignment shops. Always inspect items carefully for safety and cleanliness. The exception is carseats. Don’t buy a used car seat, and only accept one from someone you trust to know its full history. 

3. Become a master of diaper deals

Some estimates say you’ll be changing your baby’s diaper 3,000 times that first year. You’ll be a diaper-changing pro in no time, which is good since you’ll practically be doing it in your sleep. 

• Bulk buying: Buying diapers in bulk can often save you money in the long run. Look for sales and stock up when you find a good deal.

• Consider cloth diapers: Carefully weigh your options when it comes to diapers. Cloth diapers have a larger initial investment, but are cheaper per diaper in the long run. However, you also need to factor in a slightly higher water bill and more detergent, and your time spent cleaning them. 

• How can I get free diapers? Keep an eye on diaper banks or community programs that offer free diapers to families in need. You can also check with your pediatrician or local hospital for resources.

• Use the Ibotta app for diaper savings: Don't forget cash back apps! The Ibotta app often has offers on popular diaper brands, allowing you to earn cash back on your purchases. Simply upload your receipt after buying diapers at participating stores, and watch the savings add up.

4. Formula feeding on a budget:

• Consider breastfeeding: On the surface, breastfeeding is a free way to feed your baby. If you're able to breastfeed, even partially, it can significantly reduce your formula expenses. But you’ll still need to budget for pumping equipment, evaluate your own time commitment, and make sure your own diet is giving your body the best nutrition possible. 

• Generic brands: Consider switching to generic formula brands. They often have the same nutritional value as name brands but at a lower cost.

• Shop around: Compare prices at different stores and online retailers to find the best deals on formula.

• Ibotta for formula savings: Similar to diapers, Ibotta often features cash back offers on various formula brands. Use these offers to stretch your budget further.

5. Make your own baby food

Once your baby starts solids, making your own baby food can be a healthy and cost-effective alternative to store-bought jars and pouches. You can steam and puree fruits, vegetables, and meats in bulk and freeze them for later use. You can also check out baby-led weaning, a system of feeding your baby what you eat so you’re not making separate meals. 

6. Say yes to free activities

Instead of expensive outings, explore free activities in your community, like parks, playgrounds, and libraries. Many libraries offer free story times and other programs for babies and toddlers.

You can also get creative and remember that everything is new to your baby. Going on a family outing to an aquarium is great, but if you need a quick afternoon outing the fish tanks at your local pet store can be just as exciting for watching fish they’ve never seen before. 

You’re on your way to raising a Saver!

By following these tips, including using the Ibotta app for cash back on essentials like diapers and formula, you can navigate the financial challenges of parenthood with confidence. Remember, every little savings counts!