How Our New Addition To Our Family Will Affect Our Finances

In case you missed the hidden announcement in last year’s Thanksgiving post, we’ve welcomed our son to the world!

We’ve been eagerly anticipating his arrival and we’re definitely glad he’s here.

His arrival means some major changes for us, including our finances.

Here’s what we expect and what we’ve learned so far.

Baby Showers And Friends Are Amazing

The first thing we learned is baby showers and friends are amazing. We are super thankful for all of our friends and family that bought our son things he would need for the beginning of this life.

We got a ton of clothes and many other essentials that made the first few weeks of his life much less stressful. Financially, they also made the first few weeks of his life a lot less expensive, too.

In addition to things we actually needed, we got a lot of things that made our life much easier. For someone who has never had a baby before, there are a lot of expensive gadgets that I probably would never buy that have been able to save us a lot of time or headache.

Diaper Costs Will Add Up Fast

I really should have known this going in, but disposable diapers are expensive. Yes, we could use cloth diapers and save a lot of money in the process, but I’d much rather pay a bit more and not have to deal with that mess.

Thankfully, we have a membership to the local Sam’s Club and they run great deals on diapers pretty often. We’ll just have to learn how quickly we use them before we stock up during the next sale.

We Need Life Insurance

While my wife has a small amount of life insurance through work, I have no life insurance at all. In the past, I’ve always stated we didn’t need life insurance because if something happened to my wife or I, the other one of us would be fine financially.

Now that we’ve added a child into the mix, as well as a more expensive home, that is no longer the case. If one of us passed away, the other would struggle trying to raise our child and hold down a full time job.

We have enough money to last long enough to figure out what to do, but it would definitely be very stressful.

I’ll totally admit I don’t know much about life insurance, so this is something we’ll be researching in the near future. We definitely know we don’t want whole life insurance and will likely pull the trigger on a term life insurance policy.

The questions are how much do we get and how long of a term do we get. I’ll likely post more about this as we figure out what to do.

Need To Decide On College Savings

We also need to decide if we want to put aside money for our son’s future education and if we do, how we want to go about it. My parents helped me pay for half of my college costs and that was a huge help.

While I would want to help my son attend a reasonably priced college as well, I do not know what the future holds. Maybe he won’t want to go to college at all. After all, I don’t directly use anything I learned in college to be a personal finance blogger.

We’ll continue investing our money as we do now and if my son goes to college, we’ll see what we can do to help at the time.

Who knows, maybe we’ll be financially independent by the time he heads to college. If that’s the case, a little bit of work would surely help pay his way. Time will tell.

Things We Never Expected To Change Will Change

The four items listed above are just the super obvious financial changes we’ll have to deal with in the next 18+ years. I know there will be a lot more to deal with, but we’ll take them as they come.

For now, we’re just enjoying spending time together raising our son.

If you’d like to share some things we should be preparing for, I’d love to hear about them in the comments below!

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About Lance Cothern

Lance Cothern, a Certified Public Accountant (CPA) licensed in the Commonwealth of Virginia, is the founder of Money Manifesto. You can read more about him here or connect with him on Facebook, Twitter, Google+ or Pinterest.


  1. Congratulations on the new addition! Good luck with the post secondary education savings for him. That’s going to be the hardest thing to budget for in the future with costs rising so much.

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