10 major finance issues when having a baby

mom mother nursing baby
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Having a baby is the biggest blessing. Nonetheless, it comes with numerous responsibilities, including financial. It’s no surprise that many families with kids sometimes struggle to make both ends meet and turn to fast payday loans. The situation has become especially acute recently, with more than 60% of US households with children facing financial problems during the pandemic.

So, what are the major financial issues when having a baby?


The life of a new-born parent majorly consists of doctor’s appointments and regular checkups. Hence health insurance is a necessity in order to cover the costs. Although this option is cheaper than paying for a pediatrician’s services in full, it still hurts the wallet.


Being a working parent is hard not only because of a variety of duties but also due to childcare. The costs vary from area to area, starting from $4,000 – 5,000 up to $20,000 annually. The good news is that parents can opt for tax relief or a dependent care flexible spending accounts.


Little ones need to learn the world through studies as soon as they get a bit older. Every parent wants to ensure a bright future for his/her kid; therefore, sports, foreign languages, as well as other extra learning activities, are on the list of the expenditures.


Many families create a trust fund for their baby, which also implies additional costs. In particular, this involves hiring an attorney that costs around $1,000.

Emergency savings

People usually set up a rainy-day fund only if their financial situation is satisfactory. However, you should always be prepared for emergencies. That’s why many opt for life and disability insurance, just in case.


Those who have limited space have to think about buying something bigger than a one-bedroom apartment. Nevertheless, all the parents are bound to spend money on furnishing and renovation as the baby grows.


Clothing, food, diapers (for tiny pumpkins), vitamins, and many, many more fall in the category. In fact, this is a major robber of your wallet as you need to constantly provide all the essentials for a baby.

Baby gear

A kid needs a lot of things: a stroller, a car seat, a baby’s monitor, a crib – only these four things are rather costly. Parents are lucky enough to borrow at least some from friends or relatives; however, it’s not always an option.

College savings

We live in the age when families start to save for college almost as soon as they buy the first package of diapers. Later on, they have to put aside more and more in order to avoid a student loan.

Unexpected expenditures

Life is unpredictable. Yet you can’t rely on a fortune when you have a kid; therefore, it’s always prudent to save some money just in case. Otherwise, in times of crisis, you may struggle like never before.

To sum up

Parenting is not only about financial issues, yet they play an important role and can become a major problem.

Story by Aleks Souschuk   

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