Search
Open Account
Apply For Loan
Locations & ATMs
989.777.3620
Contact Us
  • Save & Spend
    • Savings Accounts
    • Checking & Debit Cards
    • Youth and Teen Accounts
    • Open Account
  • Borrow
    • Auto Loans
    • Quick Cash Loan
    • Mortgages
    • Home Equity Loans & Lines of Credit
    • Personal Loans
    • Recreational Loans
    • Personal Line of Credit
    • Student Loans
    • Insurance
    • Credit Cards
    • Open Account
  • Invest
    • Certificates (CDs)
    • Personal Investment Platform
      • Cryptocurrency
      • Securities
    • Retirement & IRAs
    • Wealth Management
    • Estate Planning
    • Insurance
    • Open Account
  • Resources
    • Digital Banking
    • CashBack+
    • Schedule an Appointment
    • Financial Blog
    • Educational Resources
    • Fraud Updates
    • Calculators & Coaches
    • For Sale
    • UFirst Foundation
    • Important Links
    • Scholarships
  • Join
    • Why Choose United Financial
    • Membership Benefits
    • Open Account
    • Schedule an Appointment
  • Businesses
    • Business Services
    • Business Accounts
    • Feature Business
  • About
    • Mission & History
    • Newsletter
    • Community Involvement
    • Fundraiser
    • Credit Union Events
      • United Financial Golf Outing
      • United Financial Walleye Race
    • Hometown Hero Program
    • School Branch
    • Careers
    • Contact Us
  • Member Login
  • Apply For Loan
  • Open Account
  • Save & Spend
    • Savings Accounts
    • Checking & Debit Cards
    • Youth and Teen Accounts
    • Open Account
  • Borrow
    • Auto Loans
    • Quick Cash Loan
    • Mortgages
    • Home Equity Loans & Lines of Credit
    • Personal Loans
    • Recreational Loans
    • Personal Line of Credit
    • Student Loans
    • Insurance
    • Credit Cards
    • Open Account
  • Invest
    • Certificates (CDs)
    • Personal Investment Platform
      • Cryptocurrency
      • Securities
    • Retirement & IRAs
    • Wealth Management
    • Estate Planning
    • Insurance
    • Open Account
  • Resources
    • Digital Banking
    • CashBack+
    • Schedule an Appointment
    • Financial Blog
    • Educational Resources
    • Fraud Updates
    • Calculators & Coaches
    • For Sale
    • UFirst Foundation
    • Important Links
    • Scholarships
  • Join
    • Why Choose United Financial
    • Membership Benefits
    • Open Account
    • Schedule an Appointment
  • Businesses
    • Business Services
    • Business Accounts
    • Feature Business
  • About
    • Mission & History
    • Newsletter
    • Community Involvement
    • Fundraiser
    • Credit Union Events
      • United Financial Golf Outing
      • United Financial Walleye Race
    • Hometown Hero Program
    • School Branch
    • Careers
    • Contact Us
  • Member Login
  • Apply For Loan
  • Open Account

4 Ways to Manage the Cost of Raising a Baby

by Marketing | May 8, 2017 | Financial Tip

Kids are expensive, and estimating how much you’ll spend on your first bundle of joy is tricky. There are diapers, clothing, furniture, food and toys to think of, as well as costs that may not spring immediately to mind, like life insurance and college savings.

But whether you’re expecting a child now or planning for one down the road, knowing the expenses involved can help you prepare. And a new study finds would-be parents might be shocked by the potential cost of raising a baby during its first year.

According to a new NerdWallet analysis, baby’s first year could set some families back as much as $21,000 — more than four times the amount most would-be parents estimate, based on data from a related Harris poll.

NerdWallet analyzed expenses associated with a baby’s first year for two hypothetical households in which both parents work — one with a $40,000 annual income and one with a $200,000 annual income — to illustrate how families with different resources might navigate the cost of raising a child. We then compared both households’ total first-year expenses with American expectations, as determined by an online Harris poll.

Here are four financial action items for parents-to-be.

1. Get real about the potential cost …

More than half of respondents (54%) currently expecting a child or planning to have one within the next three years believe the average U.S. baby’s first-year costs total $5,000 or less. But even if parents decline life insurance coverage for themselves and wait to start a college fund, they’re likely to spend far more, according to the analysis.

Be realistic about how much you might have to spend in your first year of parenthood. An online baby calculator can help you estimate expenses.

2. … Especially the biggest cost: child care

Unless a friend or family member is willing to care for your infant when you return to work — if you do — prepare to pay handsomely for child care. According to the analysis, full-time, center-based care is the biggest expense of the first year, at about $8,059. If that surprises you, you’re not alone. Just 37% of would-be parents predicted it would be among the costliest factors.

When you’re able, set aside money for high-dollar and ongoing costs such as child care, and make them a line in your monthly budget. The cost of diapers will seem small in comparison.

3. Prioritize emergency savings

People of all income levels struggle to set aside money in preparation for a new baby. Among parents and would-be parents making less than $50,000 per year, 38% said they had nothing saved, or didn’t plan on saving, prior to baby’s arrival; 21% of those making $100,000 or more said the same.

To ensure you’re ready for unexpected costs of all kinds, start an emergency fund. Not opening or contributing more to one was one of the top financial regrets of all parents surveyed. Once that’s established and you have the clothes and other must-haves for baby, consider college savings and life insurance for all guardians.

4. Gauge how much your loved ones can help

Sixty-one percent of people currently expecting a baby or planning to have one in the next three years say they think friends and family will pay more than 20% of baby’s first-year costs.

If you’re unsure what help to expect from your loved ones, ask — tactfully, of course. And you can start by registering for practical items from your baby checklist. Nursery furniture and accessories, diapers and clothing in a range of sizes will help you manage costs far more than stuffed animals.

For the analysis’ complete results and methodology, click here.

Elizabeth Renter is a staff writer at NerdWallet, a personal finance website. Email: elizabeth@nerdwallet.com. Twitter: @ElizabethRenter.

The article 4 Ways to Manage the Cost of Raising a Baby originally appeared on NerdWallet.

Recent Posts

  • What are FedNow Payments?
  • How to Start Building Credit Early & Why it Matters
  • United Financial Expands Cryptocurrency to Offer Nine Digital Currencies and Launches a feature for Self-Directed Investing
  • The Earlier, The Better: How Your Early Investments Can Affect Your Financial Future
  • Your 2025 Financial Glow-Up: Resolutions Made Easy with United Financial Credit Union

Recent Comments

  1. United Financial CU Delivers Acts of Kindness to the Community – United Financial Credit Union on United Financial Credit Union Employees Spread Acts of Kindness in their Communities
  2. Celebrating Credit Unions during International Credit Union Month – United Financial Credit Union on 5 Reasons to Switch to United Financial
  3. Why College Students Are Choosing Credit Unions Over Banks – United Financial Credit Union on Off to College? Take United Financial With You!
  4. A Family United-Serving the Community with United Financial Credit Union – United Financial Credit Union on Live, Work, Play: How United Financial Supports Local Communities
  5. Understanding IRAs: Putting your cookies in the right cookie jar – United Financial Credit Union on Intro to Saving Series: Everything You Need to Know about Saving Money

ROUTING NUMBER

United Financial Credit Union Routing Number is 272477241

ABBREVIATIONS

*APR = Annual Percentage Rate **APY = Annual Percentage Yield

Connect With Us

  • Follow
  • Follow
  • Follow
  • Follow

Accessibility

If you are using a screen reader or other auxiliary aid and are having difficulty with this site, please call 800-772-8728 for assistance.

Home
Contact Us
Locations & Hours
Holiday Closings
Privacy Policy
Disclosures
Accessibility

Copyright. All rights reserved.

Exiting our website

You are now leaving the United Financial Credit Union Web site. The web site you have selected is an external one located on another server. United Financial Credit Union has no responsibility for any external web site. It neither endorses the information, content, presentation, or accuracy nor makes any warranty, express or implied, regarding any external site. Thank you for visiting United Financial Credit Union.

Continue
Stay