Monthly increase in expense after child in Bay area (San Jose)
Hi, I am expecting a child in August. These days I am more worried about financial aspects after childbirth. We have had some calculations before pregnancy, but I am little anxious these days. So need help to get some clear picture. Our take home after taxes and all deductions (ESPP, 401K, HSA) - 12k/month We are saving 6K/month already. Not sure if we will manage to save some after child. We are not planning for nanny yet, since we will have family for initial 6 months atleast. By how much can expenses go upto? I am constantly in fear thinking was it a right choice to have a baby in first place. May be my hormones are making me anxious. Please help.
Average ~$2.5k every month per child.
You got it. You’ll be fine. Also essp is saving.
For us nanny charges $3300 per month. Other expenses stack up quickly as well ranging from baby diapers, hygiene products, food, medicines, unexpected hospital visits all put together can range anywhere between $250- $2000 for us. This does not include any 529 contributions, if you decide to start one for your kid.
Our nanny charged us $3k a month. She has been with us for 1.5 years now. For the first year, day care and nanny costs are comparable but after that daycare is much cheaper.
Ours is almost similar. We made it work but our monthly savings was going to be closer to 1k at the end. We moved to a MCOL and our monthly savings shot back up to between 3k and 4k. Having a baby is expensive but I wouldn’t trade it for anything else. I LOVE watching my kid grow, learn new things and want to give me hugs & kisses (aka - she likes me!). The money stuff will work itself out. Don’t let the stress of “am I saving enough” take you away from the moments of joy with your lil one. Your salary will grow, you may find other income streams, etc to increase how much save. But you’ll never get the time with your child back. So stay present and enjoy life. This is why you work hard, not for “how much do I save”.
You’re doing phenomenal living at 72K/year in the Bay. Yes the kid will add expenses but your lives will also grow both socially and financially.
How much does it cost to give birth
In my experience it was like 4k before insurance coverage. After insurance coverage it was like $1k all in.