Everyone knows having a baby is a huge financial responsibility but there are some cost’s that new parents totally forget to account for:
Vaccination: Babies need to visit the hospital very often for check-ups and vaccinations. Vaccinations can cost approximately Rs.47,380 from birth till the age of 5.
Bottles: Bottles are the second most expensive product on the list. The cost of bottles vary depending on its brands. Bottle prices ranges from Rs. 100 to Rs. 895 or more depending on the material, brand and quantity.
Diapers: First-time parents underestimate how much they might spend on diapers. On an average a baby uses about 3360 diapers in its first year and the average cost of one diaper is approximately Rs. 11. So in the first year itself you might spend 36,960 only on diapers!
Pro Tip: You can save on diaper costs by buying in bulk, such as a supersaver pack.
Baby Care: Your baby’s skin is far more delicate and sensitive than yours and it needs to be paid special attention to. Good baby care products range between Rs.300-Rs.500 and they are recurring expenses till the baby grows up.
Outfits for Babies: Babies outgrow their clothes pretty quickly and these clothes cost anywhere from Rs. 500 to even Rs. 3000.
Apart from these there are other additional expenses such as maternity clothes, baby food, hospital bills etc. According to Economic Times, Rs.4.88 Lacs is the amount to raise a baby from 0-4 years. So you definitely need a good financial plan in place before you plan on having a baby.
Here is a financial checklist to help you:
- Having a baby might mean managing on a single income for some time. So test yourself and try living on one income before the baby comes.
- Baby clothes and accessories are adorable but they come with a heavy price tag. So don’t impulsively indulge in everything you see. Buy those that actually make sense.
- Get the necessary insurance policies such as life and health insurance.
- Create good investments for the baby’s future.
- Find out about the maternity benefits from your company.
You can read about this checklist in detail here.