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How much does it cost to have a baby
And you thought the home pregnancy test was expensive! The costs of raising a baby to age 18 costs between $125,000-$250,000 and that\'s not including college tuition! In your baby\'s first year alone, you can easily spend between $9,000-$11,000 (for diapers, formula, baby furniture, clothing, baby gear, etc.)
Two things that can save you money right off is deciding to use cloth diapers, using 2nd hand items and breastfeeding.
If you go back to work right away, childcare can cost as much as $3,000-$4,500 in your baby\'s first year, not to mention the higher insurance premium for adding an additional person. If you can stay home with your baby, you can save money. Read more below:
Important steps to consider how much does it cost to have a baby
Capital expenses - Crib, stroller, car seat, changing table etc. would fall into this category. The good news is that you can talk to your friends, neighbours, relatives and co-workers and find out if they have these items.
Cost: nothing to $1,000s.
Ongoing expenses – this is important while learning how much does it cost to have a baby since newborns tend to go through lots of diapers and formula (if bottle-fed). Then there are clothes, baby food, toys etc. You could look for hand-me-down clothes and toys, but unfortunately, the other stuff adds up fairly quickly.
Cost: varies.
Day care - If both parents work, day care is by far the biggest expense. Here in Ottawa, formal day care costs about $950 per month for a child under 30 months and $750 per month thereafter. Even home day care costs about $750 per month for a child under 30 months and slightly cheaper thereafter. On the bright side, day care is tax deductible to the spouse with the lower income to the tune of $7,000 per year. These are important calculations in order to know how much does it cost to have a baby
Cost: $40,000 to $48,000 before tax breaks.
Opportunity cost - A parent who takes parental leave to be with their child may experience a significant loss of income. Employment Insurance benefits cover only 55% of a maximum of $40,000. Taking time off might also affect your growth at employment.
Cost: If you are earning $60,000, you can expect to have $20,000 to $25,000 less in after-tax income.
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