Money Matters: There is nothing quite like the anxiety that comes from trying to prepare for a new member of the family!

Whether it’s your first little one or even a later addition to your little tribe, planning, budgeting and planning for them can become overwhelming with everything going on in life.

Today we are back to make things easy and get right down to the basics so you don’t have to think, and can actually get some time on the couch binging some Netflix.

Survey says: According to becu.org A middle-income family could spend around $16,000 to $21,000 in the first year of a baby’s life. (Yes, you read that right – babies are adorable little money pits!)

But fear not: with some savvy planning, hand-me-down magic, and a few well-timed Target runs, you can welcome your bundle of joy without sending your bank account into full-on tantrum mode.

Here is what on that portioned plate today:

•  😎 Our Favorite Resources

• 👍The Money-Savvy Baby Prep Playbook – 7 practical tips (for first- timers and seasoned parents) to save money without skimping on safety or sanity.

• 🍼Baby Essentials Checklist: Before vs. After Birth – A categorized rundown of what to buy now and what can wait.

• 🤷‍♀️ What’s up for next week

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Cool Links

Our favorite resources

💵Budgeting

The Bump’s Baby Budget Calculator: Try The Bump’s free calculator to estimate first-year costs (diapers, daycare, etc.) – a reality check that might shock you into frugalitybecu.org. Adjust the inputs to see how hand-me-downs or breastfeeding could save you big bucks.

Consumer Reports – Safe Used Baby Gear: Not sure if that used crib from Aunt Sally is a hand made death trap from the 70’s? Check Consumer Reports’ guidelines on what baby items are safe to buy secondhand and what you must get new.

👀ICYMI

Last week Jimmy tackled how to avoid care repair woes here: https://www.moneyhoot.com/p/auto-repair-woes

📜Quote

"You have three kids and no money. Why can't I have no kids and three money?" — Homer Simpson

Today’s Main Event

The Money-Savvy Babt Prep Playbook

It doesn’t matter if you’re prepping for your first baby or dusting off the crib for baby 2, or even 3, a bit of strategy goes a long way towards keeping sanity.

Below are 7 impactful and key moves to gear you up for your newborn without blowing the monthly budget out of the water

1. Draft Your Baby Budget & Wish List Early

Before you buy a single pacifier, take a step back and map out a budget for baby’s first year. List out the big categories: nursery setup, feeding, diapers, clothing, gear, childcare, and don’t forget medical costs (those prenatal vitamins and copays add up!).

Having a rough number in mind (like that $16k-$21k first-year estimate) can help you prioritize.

• Prioritize Needs vs. Wants: Highlight absolute must-haves (car seat, safe place to sleep, diapers) versus the nice-to-haves (wipe warmer, we’re looking at you).
  
  Keeping your list minimalist can save you from buying gimmicky gadgets that end up collecting dust.
  

• Get Family Input: If you’re not a first-time parent, reflect on what you actually used with your older kid(s). Experienced parents often chuckle at the unused wipe warmers and bottle sterilizers sitting in storage.
  
  Use that hindsight to trim your list. If this is baby #1, talk to friends or family with kids – they’ll happily rant about what not to buy.
  

• Budget Line Items: Set ballpark figures for each category. For example, you might budget ~$500 for nursery furniture, $300 for a starter stash of diapers and wipes, etc.
  
  Knowing the going rate helps when you start shopping and prevents sticker shock. (Fun fact: Families may spend close to $936 on disposable diapers in baby’s first – that’s a lot of “doo-doo” dollars!)

Experienced Parents Tip: Maybe you’re already a step ahead! You can reuse A LOT of baby gear and clothes ( keep reading below for more on that) and you’ve learned what is overhyped.

However, don’t forget that larger families can require unique expenses like childcare costs. Infants often require higher costs for childcare and don’t often get multi-kid discounts.

Take into account what new expenses may be at play and write those down.

2. Master the Baby Registry (and Baby Shower) Hustle

One of the best budgeting moves for new parents: make the most of your baby registry and shower. Think of your registry as a strategic checklist – and a way to get free stuff and discounts for whatever isn’t gifted.

• Register Everywhere (Within Reason): Don’t feel chained to one store. Big retailers like Amazon, Target, Walmart, and BuyBuy BABY all offer perks for creating a registry.
  
  For example, Target gives a 15% off coupon for remaining items (available about 8 weeks before your due date), and Amazon offers a 10-15% completion discount for Prime.
  
  You can even create multiple registries to score multiple welcome – each may give you a goody bag or baby box with samples, coupons, and even full-size products. (Hey, it’s not greedy – it’s maximizing value.)
  

• Group Gifting & Big-Ticket Items: Don’t shy away from adding expensive items (stroller, car seat, crib) to your registry if they’re truly needed. Many registries (Amazon, Target) allow group gifting, where several people can chip in towards a pricey item.
  

• Ask for Essentials (and Cash!): Use your shower to stock up on the boring-but-necessary stuff: diapers (in various sizes), wipes, burp cloths, onesies, etc. Add some gift cards to your registry too.
  
  Not only do gift cards let you purchase what you realize you need later (because trust us, there will be surprises).
  

• Leverage Completion Discounts: Mark your calendar for those registry completion coupons. Amazon’s 15% off (for Prime) kicks in around 60 days before your due date and can be used on two orders up to a combined $300 discount.
  

• Freebies & Samples: By creating registries and signing up for newsletters, you’ll start receiving freebies before baby arrives. Snag those welcome boxes – they often include things like pacifiers, bottle samples, diapers, wipes, and coupons.
  
  Also sign up directly with formula brands (Similac, Enfamil, etc.) for free sample packs and throw them in your baby go bag.

Pro Tip: Many health insurance plans cover a breast pump 100% under the ACA. Check with your insurer on how to get your free pump (often through approved medical suppliers). A decent electric pump can cost $150-$300 retail, so this is a huge saving if you’ll need one.

BTW, you can do this for each baby!

3. Buy Used (When Safe) & Embrace Hand-Me-Downs

Babies may be tiny, but their gear is expensive. The secret weapon of budget-savvy parents?

Secondhand everything – or almost everything. Let’s break down where you can safely save by going used, and where you should stick to new:

• Big Savings on Secondhand Gear: Gently used baby items can often be found at 50-90% off retail (or even free). Hit up Facebook Marketplace, Craigslist, consignment shops, mommy groups, and neighborhood yard sales for things like baby swings, bouncers, high chairs, play mats, infant tubs, baby clothes, and toys.
  

• Used Clothes = Huge Wins: Baby clothes are the poster child of secondhand savings. Newborns cycle through outfits at lightning speed (hello, growth spurts and spit-up!). Thrift stores and consignment sales have racks of barely-worn onesies for $1 a piece. Why pay $20 for a fancy outfit they’ll wear once?
  

• Safe to Buy Used: Strollers, baby carriers, playpens/playards, nursery furniture (dressers, changing tables, rockers), and certain toys are generally fine to get secondhand, as long as they meet current safety standards and aren’t on recall lists.
  
  For strollers, experts say models made after 2015 meet updated safety standards, so those are OK to buy used (check that nothing’s broken and it still folds/brakes properly).
  

• When to Splurge on New: For some items, safety concerns mean new is best (or used with strict criteria). The big two are car seats and cribs. Car seats have expiration dates and if they’ve been in a moderate/severe crash, they’re compromised.
  
  You don’t have to buy a $400 car seat – even budget models around $100 meet the same federal safety standards. (For example, the Graco SnugRide 35 Lite LX infant car seat costs about $120 but earns strong safety ratings in crash.)
  

• Seasoned Parent Insight: If this isn’t your first rodeo, you probably have bins of baby clothes and gear stashed away. Reuse whatever you can! Just do a safety scan for each item (e.g., make sure the old crib still tightens up properly, the bouncer hasn’t been recalled, etc.).

4. Know Where to Spend vs. Save (Safety First!)

• Spend On Safety-Critical Items: As mentioned, car seats should almost always be new. This is non-negotiable if you’re unsure about a used one’s history.
  
  The same goes for the crib and crib mattress. A new, firm mattress that fits snugly in the crib (with no gaps) is important for safe sleep.
  
  The one fancy item that my wife and I were absolutely grateful to have is the Owlet Monitor. It is expensive, however it monitors the baby’s heartrate and breathing and can help alleviate the fear of SIDs.
  

• Save (or Mid-Range) on Short-Lived Gear: Think about how long an item will be used. That $1,500 smart bassinet that lulls baby to sleep sounds amazing (we’re looking at you, Snoo), but baby will outgrow a bassinet in 4-6 months.
  
  A basic, safe bassinet or a Pack ’n Play with bassinet insert for $60 will do the job without the hefty price tag
  

• Quality over Hype: The baby products market is flooded with “must-haves” that claim to make life easier. Some are great; many are unnecessary.
  
  You might be tempted by that self-rocking baby swing, the high-tech formula prep machine, or the designer diaper bag. Pause and ask: Does this solve a real problem I’ll have, or is it just cool?

5. Stock Up Smartly on Diapers & Feeding Supplies

• Diapers: If using disposables, try different brands early on with small packs to see what works for your baby (some babies have shape/size or sensitivity differences). Once you find a good brand, buy in bulk when on sale or use Amazon Family Subscribe & Save for 20% off diaper subscriptions
  
  Pro tip: Don’t overspend on newborn-size diapers – they outgrow them fast. Have a few packs of size 1 ready as well.
  

• Wipes and Other Supplies: Similar deal – buy unscented wipes in bulk or by the case when on sale. One hack: water wipes or making your own wipes solution with cloth wipes can cut cost, but requires time. For things like diaper cream, baby soap, lotion, etc., put them on your registry or scoop them up with coupons.
  

• Formula Feeding: If you’ll use formula, sign up for coupons from all the major formula brands ahead of time. They will send high-value coupons and even free tins. Don’t stockpile one type of formula until you’re sure your baby tolerates it well – sometimes you need to switch types due to sensitivity.
  

• Breastfeeding Supplies: If breastfeeding, remember it’s not entirely “free” – you may need nursing pads, a breast pump (see insurance tip above), bottles for pumped milk, milk storage bags, etc. Still, it’s usually cheaper than full-time formula. To save: get a free pump through insurance, use washable breast pads (or ask for lots of sample disposables), and only invest in pumping gear once you know what you need.
  

• Baby Food Down the Road: While not a newborn expense, solid foods will come faster than you think. The cheapest route is often to make your own purees (steam veggies and blend – it’s simpler than it sounds).

6. Tap into Community & Freebies

• Buy Nothing & Free Groups: As noted earlier, join local parenting groups, “Buy Nothing” groups, or even general freecycle communities.
  

• Library and Toy Swap: Your local library is an unsung hero for new parents. Many libraries offer “story time” for infants (free entertainment!) and some even have toy lending libraries or play areas.
  
  We have a whole article here as well on how to tap into Library resources: https://www.moneyhoot.com/p/library-savings
  

• Community Baby Showers & Charities: In some areas, nonprofits host community baby showers or offer free supplies to expecting families in need.
  
  Don’t hesitate to use these resources if you’re struggling – they exist to help. WIC (Women, Infants, and Children) programs, local churches, or hospitals sometimes provide free diapers or gear.

7. Stagger Your Purchases – What to Buy Before Baby (and What Can Wait)

When you’re nesting, the urge is to have EVERYTHING ready NOW. But you actually don’t need to buy every single baby item before the baby is born. In fact, waiting on some purchases can save money and avoid clutter. Here’s the game plan:

• Must-Haves On Day 1: Focus your pre-birth shopping on the essentials baby will need from the get-go.

• Nice-to-Haves & Postpartum for Mom: There are things that you (the parent) will want right away: a comfy setup for feeding (nursing pillow can help), postpartum recovery supplies for mom (stock up on pads, pain relievers, maybe a sitz bath if recommended).

• What Can Wait: Hold off on buying items that baby won’t use until a bit later. For example, you don’t need a high chair until around 4-6 months when solid foods start – that’s many months post-birth and you can scout for a deal or used one later.

• Think in Phases: Budgeting by phases can help. Consider the newborn phase (0-3 months): keep purchases here to essentials. The infant phase (3-6 months): you might add a play gym, bumbo seat, or upgrade to a crib then.
  
  The mobile baby phase (6-12 months): you’ll be looking at high chairs, maybe a bigger stroller if you started with a frame stroller, and baby-proofing.

• Keep Some Cash in Reserve: It’s wise to keep a portion of your baby budget unallocated, kind of like a contingency fund. After baby arrives, you might discover you need something you never anticipated.

Up next, we’ve compiled a handy Checklist summarizing what to buy before baby arrives and what can wait until after birth or as needed. Use it as a guide so you don’t accidentally forget an essential – or waste money on something non-urgent.

Until Next Time

What’s Up Next Week

Well I set out to make this as short and concise as possible and it still ended up long. I truly hope this helps some of you out there, as my wife and I are currently weeks out from our second child.

Next Jimmy is diving into “Tactics and Strategies to help with Student Debt”.

If you liked todays issue please take 5 seconds to rate the issue below with 1-click.

If there is something you would like to hear about then let us know but sending us an email and we will write about it!

Until next time!

Peace out HootSquad

-Nico

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.