I don't think that many prospective parents fully comprehend the breakdown of baby costs. And if they do understand them, this often comes after the fact, which by then, it's too late.
This happened to us with our first child. We knew that having a kid could be costly, but we weren't really sure just how costly. Therefore, here is a breakdown of costs for our second child, bearing in mind that we already had certain supplies left from our first child such as a crib, a changing table, a bathtub, clothing, towels, blankets, and many toys.
There are a variety of supplies that we accumulated in preparation for baby's arrival. Thankfully, this time around we had retained some of our leftovers from our first child, which helped cut costs in this area. With items like a crib, changing table, baby bathtub, a variety of clothing, blankets, and bedding, and a slew of toys, we were in pretty good shape starting off.
However, there were still things that we needed to re-buy due to having downsized our home and the inevitable wear and tear on others items. A new swing, a new playard, a car seat and stroller, and certain clothing all needed to be purchased. There were also supplies like bottles, diapers, wipes, breast pump supplies, supplemental formula, gas medicine, and related items that we needed in preparation for baby.
However, by visiting resale shops and garage sales for certain clothing purchases, buying store brands when it came to many supplies, and shopping online for deals on things like our swing, playard, and similar supplies, we were able to keep our costs to a minimum, only spending about $375 for all our supply needs before our baby was born.
We moved back to the Chicagoland area largely so we could get better employer-sponsored health insurance coverage to enable us to contemplate having another baby. This relocation helped significantly to keep our doctor visit costs lower. For things like ultrasounds, general checkups, hospital parking costs, and similar doctor appointments, we ended up spending just over $800 before baby's arrival.
By understanding our insurance coverage, and knowing that there was a $1,400 health reimbursement account provided through my wife's employer that covered her deductible and some out-of-pocket costs, we were able to keep the costs for our baby-related doctor bills fairly reasonable.
When all was said and done, our baby bills sent from health providers to insurance ran about $51,000. About $20,000 of this was related to the actual birthing process. Thankfully though, with the health reimbursement account chipping in, and much of my wife's out-of-pocket costs being absorbed by the initial doctor visits pre-birth, we had about $1,700 left to pay for the birthing costs. This brought our total for baby-related costs to just under $3,000.
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The author is not a licensed financial, parenting or family planning professional. The information provided in this article is for informational purposes only and does not constitute legal, financial, parenting, or family planning advice. Any action taken by the reader due to the information provided in this article is solely at the reader's discretion.