By tracking your spending habits before the baby arrives, you can identify expenses that can be eliminated or pared down to accommodate the new addition into your old budget. Determine day care expenses . Research child care options and begin budgeting now to avoid a financial jolt after the baby's birth. Other parents, your pediatrician and your hospital are good sources for advice.
Many cities also have directories of licensed day care providers.
Discuss the pros and cons of staying home with baby. If mom or dad is staying home to take care of the baby, calculate how the loss of income will affect the family budget. Look into flexible spending plans. Some employers offer this benefit to help cover dependent care expenses. You may be able to direct a portion of your pre-tax wages to a personal account from which you can draw reimbursement for child care costs.