7 Money Saving Tips for New (or Expecting!) Parents

Are you a expecting a new baby? Congrats! As a financial planner and mom of 3 (including baby twins), I know what you are going through.  Here are some money-saving tips for new parents to help ease the financial strain.

  1. Don’t buy more than you need before the baby comes.

Your baby won’t need much at the beginning.  A place to sleep. Some diapers and wipes. A few things to wear. Something to carry the baby: a carseat and/or carrier. That’s actually it. Newborn babies don’t need shoes (they don’t walk!), tons of clothes (they grow out of things so quickly) or even toys (a mobile over the crib is nice).  So don’t go crazy shopping.

  1. Get your free breast pump.

The Affordable Care Act (2010) requires most health insurance plans to cover the cost of a breast pump as part of women’s preventative health services.  When my son was born in 2008, I paid several hundred dollars for a decent breast pump.  I actually still had it, and thought I might replace the tubing and use it again.  However, during my pregnancy in 2014, my health insurance informed me that I could get a free one.  I had to buy it using the link they provided (I couldn’t just go buy it and submit the receipt for reimbursement), but it was free.

[Side note: I have a High Deductible Health Plan, and was skeptical that it would *really* be free. I thought it would apply to the deductible.  But I was wrong – it was totally free!]

I realize breastfeeding doesn’t work out for everyone, but the free pump does make it feasible for most moms to at least give it a try.  It is good for baby, it is good for mom, and since we are on the topic, breastfeeding is WAY cheaper than formula.  Do it as long as you can, I say!  Speaking of formula, that leads to my next tip.

  1. Use coupons.

I never use coupons.  Well, in normal life that is.  I’ve always felt that it wasn’t worth the trouble to save 30 cents on a box of cereal, when I am trying to buy fresh foods anyway. But baby stuff, especially diapers and formula, is different.  You can get really good coupons – for say $10 off – on diapers and formula. So now is the time to sign up for that loyalty card at the drugstore, keep an eye out for coupons in the mail, and even do a google search for “baby diaper coupons” before you buy. Which of course leads to the next tip …

  1. Buy in bulk.

If you’ve only considered it in the past, now may be the time for a warehouse club membership. (Warning: the Brooklyn Costco is a madhouse on the weekends). Checking current prices at Amazon, a package of 20 size 1 diapers costs $8.79 or $0.44 per diaper, while a package of 252 costs $36.79 or $0.15 per diaper.  That’s a big difference! Put another way, for every time your little angel poops, would you rather pay 15 cents or 44 cents? ‘Nuff said.

  1. Choose childcare carefully.

Let me tell you a secret: I think it’s actually pretty easy to find a nanny.  I was a bit intimidated by the process and thought it would be really hard to find someone.  But there are “nanny available” notices all over the parents groups I belong to.  When I was looking for a nanny, I posted a job description at care.com and had dozens of candidates contact me within a few days.  You obviously don’t choose a nanny based on price, but the point is that it is important to interview multiple candidates and imagine how this person might fit in with your family.  Also know going in that the highest-priced option is not necessarily what you need or want.  Daycare is another story, in my experience.  There are waitlists (and waitlists for a tour!).  But I have also gone the daycare route and been a happy customer.  However, switching from one daycare to another (that I liked better) for my son a few years ago saved me over $1,000/month.  And I can do a lot with $12K per year! So choose carefully.  Childcare is often THE biggest monthly expense for many of my clients, and in NYC you can expect to spend thousands of dollars a month on full time childcare, whether you use daycare or a nanny.  Just don’t panic and commit to the first thing you find that looks like it will work.  There are many options available, though it doesn’t always seem that way.

  1. Hand me downs rule.

Do you have a friend, neighbor or coworker with kids a little older than yours?  Ask where they got their baby clothes!  Most parents (especially if it is not their first baby) will make the connection that you need baby clothes, and would be thrilled to give theirs away (and clear out their closets).  It’s win-win!  Someone in my office asked if I wanted some baby clothes and I said yes!  Bags and bags of adorable clothes appeared, and I am still grateful.  And who has time to shop for baby clothes anyway?

  1. Join Your Community

Are you looking for advice, tips, or just other parents in the neighborhood? There are loads of websites and on and offline groups for new parents like you!  I am so glad that I joined several local groups online.  I met several moms at weekly meetups while on maternity leave that I kept in touch with for years.  I bought and sold things like a jogging stroller, snow boots, and other various bits of gear. I also got advice and local resources (mostly from searching or reading other people’s posts) on things like breastfeeding, travel with little ones (especially twins), sleep training … the list goes on and on.  So go out and join a local group – you never know when it will come in handy!

Good luck moms and dads!

About the Author

Sara Stanich

Sara Stanich is President and Owner of The Stanich Group, a fee-only financial planning firm in New York City.
The Stanich Group provides financial planning advice and investment management services to busy and successful parents focused on achieving their financial goals. These goals may include optimizing an investment portfolio, buying a home, saving for a child’s education, increasing tax-efficiency, retirement, or simply financial independence and building wealth. Sara blogs at CultivatingWealth.com and www.PowerOverDivorce.com

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