by: Debbie Dragon

With a little planning and budgeting a newborn baby can be a joyful experience for a family while avoiding the added pressures of mounting credit card debt. Face it having a baby is a very expensive life event. Not only are there added medical expenses which hopefully, the majority are covered by one's health insurance, but also there are the added expenses of preparing for baby's arrival. Typically baby showers provide for a lot of the little necessities but some of the larger more expensive items have to be provided by the parents, grandparents or other family members.

So how can the newborns parents successfully navigate the maze of purchases and financial pressures that are sure to come during the pregnancy, at the end of nine months and beyond?

Make a budget. Most young people fail to make budgeting a priority. It's part of the “oh, I'm young I don't have to do that yet,” mentality. Yet, this is the single most important task that you can accomplish and it will not only help you in the short-term but guide you long term as well. If you have not learned how to make a budget and stick to it now is the perfect time.

A budget does not have to be a complicated thing either. Simply matching income to expenses is a good first step. Then the next step is in examining both and making necessary changes which will have a positive effect on the finances of the family. For example, will the family income be maintained during this time or will there be a loss of income due to the pregnancy and birth of the child? Are there any changes that can be made to replace that income (even partially)? Next, what expenses can be reduced to help offset any additional expenses that will certainly occur after the birth of the child?

Pay off as much debt as possible before the birth of the child. If there are any credit cards that can be paid off during the time of the pregnancy, a source of stress and pressure will be eliminated from you life. Are there any items in the house that can be sold in order to build up a small cash reserve or pay off debt?

Have an emergency fund of cash set aside. While it is difficult to say how much money one should have in an emergency fund, an amount of $1000 to $2000 will certainly be helpful. Make a pact between yourselves not to touch this money unless it is truly an emergency. Sit down and write out what constitutes an emergency and stick to it.

Shop at local thrift shops. You'll find some incredible bargains especially on clothing. Babies do not wear their clothing for long periods of time before growing out of them, therefore finding baby clothing in good to excellent condition is the norm. A lot of good baby toys can be purchased here as well.

Ask family members. You might have family members who have children that have grown out of clothing and toys that could be made available for your baby. Most of these items can be obtained at no cost.

Use credit cards wisely. Make your use of credit cards a part of your budgeting process. In other words do not use them unless you can pay off the balances every month. The other philosophy you can implement is to keep your credit cards for emergencies only. Taking them out of your wallet or purse will help prevent the urge to use them while you're shopping but remember to take them with you if you travel.

Using these suggestions will make this time more pleasant because of the reduced pressures of finances upon the family.

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