Budgeting for your new baby

The nine months leading to the birth of your child is bound to be challenging. It’s a journey filled with doctor’s appointments, baby-proofing your home, prenatal vitamins, and anticipating hospital bills. It’s really a lot to take in. And budgeting is an inevitable part of every step.

Exactly what is the cost of having a baby in the Philippines?

To get an idea of the cost of your upcoming baby, let’s take a look at this list:

• Monthly prenatal check-ups
• Ultrasound
• Delivery and Hospitalization
• Diapers (PHP 2,500 a month for disposable ones)
• Milk formula (PHP 6,000 a month)
• Baby Food
• Nipple/teat for bottles (PHP 700/semi-annually)
• Clothing
• Toys and books
• Doctor’s visits (around PHP 800 per visit)
• Vaccinations (PHP 2,500 per vaccine)
• Additional electricity
• Additional water
• Crib
• Diaper bag
• Breast pump
• Feeding bottles
• Changing tables
• Building a nursery
• High chair
• Sterilizer
• Stroller
• Car seat

All-in-all, you can expect to spend around PHP 1 million for your baby’s first two years of life. Bulk of the baby expenses will be spent for the delivery and hospitalization after that. You could spend anywhere between PHP 25,000 to PHP 100,000 depending on the hospital and the type of room you stay in afterwards. This does not include all the doctor’s appointments prior to the delivery or the prenatal vitamins.

Honestly, that’s big money. But there are ways you can bring this amount down by sticking to a budget or by borrowing and buying second hand items. It’s also important to start saving money well before you even have the baby, and this includes creating the budget for him or her and tacking on unexpected expenses. While there are expenses you are sure of incurring such as food, diapers, and milk, there are others that you may not account for such as unexpected doctor’s visits. It’s best to cover all your bases when those rainy days come.

Here are some ways to make the budgeting easier:

1. Plan your budget

Start with how much you and your partner earn. Compute how much you’ll both be able to make by the end of the pregnancy and deduct any household expenses. From there, you’ll be able to figure out how much is left for your “baby budget.” You don’t want to spend all your money on your baby, so it’s a good idea to have additional sources of income or to cut corners where you can.

2. Create an emergency fund

When creating your baby budget, don’t forget to set aside money for emergencies. Ideally, you’ll want to set aside three to six months’ worth of your monthly income.

3. Start cutting back early

The earlier you learn how to live on a tight budget, the better adjusted you’ll be when your baby arrives. Slowly let go of small luxuries in your life during the pregnancy, such as unnecessary subscriptions, food deliveries, dining out, etc. By the time the baby arrives, you’re used to living on a smaller budget.

Raising a baby on a budget

There’s no shame in raising a baby on a budget, especially during trying times like a pandemic. If you’re looking for ways to further reduce your spending, here are some smart ways to do it.

1. Diaper shifts

Consider using cheaper diapers during the morning and higher-end ones at night. During the day, you have a more watchful eye on your baby so you can check on them regularly for any leaks or moisture. Save the more expensive brand for nighttime use when you, your partner, and your baby all need the extra hours of sleep.

2. Hand-me-downs

Don’t shy away from hand-me-downs. Babies outgrow clothes and toys so quickly. Spending money on clothes and new toys regularly isn’t practical. Ask your friends who have children who are slightly older if they have anything to sell or give away. You can also join parenting groups on social media where you could get second-hand items that have hardly been used for a fraction of the cost. Sanitize them properly and you’re good to go.

3. Make your own baby food

Making your own baby food is not only easy, but also healthier. Store-bought baby food often has preservatives or is packed with sugar to help it keep on the grocery shelves. You can make your own at home by steaming or boiling fruits or vegetables then blitzing it in a blender until smooth.

Hope these suggestions make your journey a little bit lighter. Make Metrobank your partners in this financial journey. Open a savings account with us today for your baby budget.