Friday, February 24, 2012

Financial Analysis of Having a Baby

image A survey that I lately read forced me to evaluate common financial impacts / constraints and their solutions in respect of having a baby. According to the same survey on an average US Dollars of 8,000/ is spent in the first year of the birth. The first attack on the savings is done by the hospital fee which is followed by the mandatory vaccinations, then the cost baby food and diapers suck on to one’s wallet like Dracula.

Prior to baby arrival, expenses start to incur:… some mandatory, few classed as reckless spending and some due to love, care and affection to the forth coming member of the family. Medical Checkup of the mother at regular intervals, her medication, diet plan and care, family responses on false alarms …these all are mandatory costs incurred in favor of a healthy and pleasant entrance of the baby to this world.
On the other side, it is also noted that a large percentage of mothers are eager to lavishly spend on the baby’s room decoration, cot, toys, dresses, etc rather then buying smartly by reading relevant baby books or seeking suggestions from experienced moms. It is also noted that majority of the men pay full attention to their wife…but… this level of attention reduces the next time she goes in the production phase … and reduce further more on the next arrival and goes on like this  :)  plus men (to save cost) prefer to hold on to the prior one’s belongings and use it on to the new one (dresses, shoes, books, toys etc) while almost every woman hates this idea, as … she feels a guilt of biasness in her offspring where one gets new and the other goes for second hand.
Those who do not have an insurance cover either personal or provided by the company usually do not go for the next baby for a while :(
With reference to the above (in bold) statement, let me clear that insurance benefits are not 100%, many insurances deduct a percentage if the delivery in not normal, or the policy doesn’t cover initial vaccinations, medication of child for respiratory infection which is very common in new born babies, premature births etc. One gets lucky if the such a deduction is on company’s account but when it comes to personal account… no one is happy… I personally believe having an insurance still saves some savings.
Caring / Monitoring and Feeding Cost of Baby is Huge:
- Not every baby is breastfed nor is provided devoted attention of both the parents, especially mother. Solution to this is to increase the profits of day care centers or reduce unemployment by hiring a full /part time nurse while very few parents opt to leave their child in custody of respective in-laws.
- Baby food cost is unstoppable and like every human being, newly born excrete their food too but unlike adults who enjoy restrooms for free there is a cost of diaper associated for every shit they do and one can not stop or reduce it… and… if your child excretion is not normal or has reduced its frequency my friend your kid is ill and you will have to take him to hospital which will result in extra cost.
Baby Safety and Entertainment Cost
Purchasing of below is necessary but nothing comes in this world for free.
- safety belts / baby on board stickers / taping the electric sockets / safety baskets / Safety Lock in cots etc
- Wind Chimes / Sensor toys etc
How to Save these Costs:
Some very commonly used modes are as follows
1. avoid unnecessary food related accessories e.g. bottle warmer, diaper odor solutions
2. there are many online stores or garage sales or friends who are selling out good quality baby merchandises at a fairly inexpensive rate
3. some things can be procured at installments (e.g. cots ) where in long term you pay more but saves a sudden cash out flow
4. Saving and Investing for future, very few people do so but when the future comes either your are an A grade and “economically sound dad” or a “poor broke old man”.
5. Woman to earn from home: many females quit their jobs when nearing their delivery date, and often end up taking stress of finances which is neither good for their health nor of the baby’s.          Solution:      They can bring cash to home by earning online there are various options of doing so or provide lessons at home (cooking / music) etc. Every penny saved has a worth. They can also take such activities full time after the baby’s birth.
Having a baby is the most beautiful thing that happens to a couple and to keep this happiness long lasting… money has a part to play as…  $$$$ ===> talks, walks, does the monkey dance, sings the goo goo boo boo ga ga songs for your off spring. So spend money wisely and give your child a better and SECURE FUTURE  and if you cannot wait then wait for my new post  “i m not financially strong…how not to have babies” ;)

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