Budget planning (especially for baby #2)

[hopeful2012]

As far as what needs to be budgeted for I've thought of some of the following stuff/extra expenses:

-Childcare/preschool (you covered)
-Health insurance increases (if any)
-Medical costs, co-pays deductibles for childbirth/delivery/baby well visits
-New clothes, particularly if different gender
-Diapers, wipes, etc.
-Especially when older, some new toys/books (my 2 year old has destroyed a lot of his books/toys so they won't make very good hand-me-downs)
-Double stroller (maybe not necessary depending on the age gap and the child).
-Getting a toddler bed for the older child if you don't have one already (or if you are using their crib as a converted toddler bed)
-Generally, more expensive to vacation
-College fund
-Hosting child's baptism (if you do it)/birthday parties, etc.

[Deleted]

At our daycare, when there is a second child, the older one has reduced tuition of $100/week. That is huge for us, since #2 will cost us less than $1000 additional/month for daycare.

In terms of bankroll, we are just going to shift the money we are throwing at our second mortgage ($1000 a month) and lower our grocery bill by $300 (haha. Our budget is $1000 now so if we can't do $700, we have issues) so we can open a second 529.

So basically we are restructuring some things. We are hopeful that DH will be getting a big raise this year though, its looking to be a good year.

We don't plan on buying anything, unless we have a boy and need clothes. We dont need a double stroller, cloth diapers can be passed down (but we still have to buy regular diapers for daycare).

We'd also add #2 to DH's health care plan, which his employer pays 100%.

[Deleted]

I'm saving up extra for maternity leave because this time it will be unpaid. I am also working more which will cover the additional daycare.

Do you all think it is best to open an additional 529 or just start adding more to the original one and add a second kid to that?

[Deleted]

May 22, 2012 14:57:23 GMT -5 dbsk8dance said:

I'm saving up extra for maternity leave because this time it will be unpaid. I am also working more which will cover the additional daycare.

Do you all think it is best to open an additional 529 or just start adding more to the original one and add a second kid to that?

I suggest opening a separate 529. If I'm not mistaken you can only draw from it for one kid at a time. So, if both are in college, you can only use it for the expenses of one of the kids and not both.

[Deleted]

We are hoping to TTC for #2 soon. Our plan includes:

1. Do marriage counseling. This is at the top of our list. We expect that adding a 2nd kid means things will be crazier. So we want to prepare ourselves so we won't end up clashing. lol. I'm hoping for an easy transition from 1 kid to 2 kids.

2. Save as much vacation days as possible.

3. Stay frugal and SAVE SAVE SAVE since:

a. I plan on being off again until baby is at least 4mos.
b. I want to be able to hire somebody to help us in the first 2-4wks.
c. Bring my mom over to stay with us for at least a month (3 mos preferred). That means we'll be paying for all her expenses, plus income replacement.

4. We are financing our next house to 30yrs, so we can easily absorb the $1200 per month daycare for baby #2.

[Deleted]

We both had gotten a few raises that made paying for 2 in daycare fit in the budget. We felt comfortable w/ that as daycare is the biggest expense and we could wiggle everything else around to make room for all other costs. When we found out there were two we paid triple car payments on my car to have it paid off to open up more free money. It was still going to be super tight. A year after they were born H got a new job and makes double what he used to make. Everything always seems to randomly work out.

[Deleted]

May 22, 2012 14:37:51 GMT -5 hopeful2012 said:

As far as what needs to be budgeted for I've thought of some of the following stuff/extra expenses:

-Childcare/preschool (you covered)
-Health insurance increases (if any)
-Medical costs, co-pays deductibles for childbirth/delivery/baby well visits
-New clothes, particularly if different gender
-Diapers, wipes, etc.
-Especially when older, some new toys/books (my 2 year old has destroyed a lot of his books/toys so they won't make very good hand-me-downs)
-Double stroller (maybe not necessary depending on the age gap and the child).
-Getting a toddler bed for the older child if you don't have one already (or if you are using their crib as a converted toddler bed)
-Generally, more expensive to vacation
-College fund
-Hosting child's baptism (if you do it)/birthday parties, etc.

Also add in higher costs associated with more activities and a larger grocery bill (once LO #2 starts eating real food).

[locarb]

Everybody has already offered great ideas. I just wanted to reiterate medical bills. DD2 had severe reflux so we went on special formula, meds, thickner, breathing treatments, and multiple drs visits (co pays). On top of that, add'l drs visits/medications for illnesses due to 1st yr in DC and now severe allergies. We did not budget or anticipate this much medical care.

Budget a little extra for uncertainties.

[SusanBAnthony]

The biggest expense for us, was that dd quit nursing at 8 months, and formula was almost 150$ a month for about 6 months.

Now our grocery bills is noticeably larger than with 1kid- part of that is ds being bigger and eating more, but I already feel like I have a taste of kids eating us out if house and home.

[savannah11]

Our biggest cost increase was daycare and food. #2 is still too young for a lot of activities so we haven't been hit with that yet. We kept everything gender neutral and otherwise don't care so it could be used again.