Can You Afford a Baby in This Economy?

Some Couples Delay Having a Baby While Others Consider it the Perfect Time

With the economy in the doldrums and no short-term solution in sight, many couples are postponing starting a family or placing the addition of siblings on hold. Having a baby is expensive enough on a young family's budget, but add in child care costs coupled with concerns about job security, and delays are inevitable. However, not all parents think a faltering economy and increased chances of getting laid off from work is a cause for delay. In fact, some argue that it can be a convenient time to have a baby since a parent may already be at home.

As couples wrestle with tough financial decisions, many of them remain on the fence about whether to hold back or go for it in terms of having a baby. Regardless of the economy, raising a child is quite pricey. According to a 2007 report by the U.S. Department of Agriculture, a middle-class family making more than $77,100 will spend nearly $300,000 raising a child from birth to age 17. That figure doesn't take into account college tuition or inflation.

Keep in mind the following factors when deciding about having a baby:

• Stress. This is a stressful time to be pregnant, especially if couples plan for both parents to remain in the workforce. Stress can be due to the uncertainty of continued employment, high costs of baby items, and the expectation of less assistance with baby gifts and other items due to financial problems with friends and loved ones.



• Child care. If the mom plans to keep working, be sure your family budget can afford the child care you need and want. While many child care providers are making every effort to provide additional flexibility and keep costs as low as possible during these tough times, the prices may still be more than you can afford. Be sure to frequently check on the status of daycares and family providers you are considering. Some have recently closed their doors due to not being able to afford day-to-day operations. More information:
  -- Daycare on a Budget
  -- The Economy's Impact on Child Care



• Costs of baby essentials. Sure, you can purchase used cribs, clothing or baby items (make sure they are safe and lead-free first, however). But the highest recurring costs are not in equipment; rather, they are in diapers and formula. And, that's assuming your baby is born healthy.
More information:
-- Buying Used Baby Items


• Medical costs. Babies are seen for well-child visits on schedules that may include visits at 2, 4 and 6 weeks and then at 3, 6, 9 and 12 months (check with your pediatrician to be sure). In other words, that's a lot of visits. Important childhood vaccinations occur at many of these visits, so every appointment is very important. If your child becomes ill or is born prematurely or has a medical condition, expect significant additional costs. If you have insurance, review it carefully to see what is covered. If you don't (and some families may lose their insurance if their job is cut), unexpected medical costs can put stressed family budgets over the brink.
  -- Well Child Visits



• Babysitting options. If you're lucky enough to have a family member who lives nearby, you may ask about babysitting or child care options. Grandparents may be more readily available, and some families work together with in-kind arrangements (such as one relative watches kids while the working family member provides the food). There's no better time than right now to consider things like babysitter co-ops and other solutions that provide safe care on a budget. More information:
  -- 10 Things About Using Grandparents for Child Care
  -- Using Family Members for Child Care
  
  More Child Care Quick Tips