What is your #1 money tip for new parents?

My number one tip for new parents is that things are going to be crazy for a while. Don’t let the silliness stop you from really enjoying the moment. Every once in awhile, forget about the to do list and the mess and the money and take a deep breath to take it all in. Hold your baby. Kiss him/her and just enjoy a moment. The time goes by so fast that having those mental images is priceless.

Speaking of time going by fast, my #1 money tip is to borrow whatever and whenever you can. Baby’s grow up so quickly that so many of the things you “need” for a baby, you won’t need for long. We are so appreciative of the clothes and baby items we have been able to borrow from friends and family. Don’t be afraid to ask those in your network to borrow stuff they’re not using. They will probably be glad to lend it out and free up some space for a while. After my second son was born I reached out to some fellow bloggers and put together a list of tips to save money on child costs. There are some gems in there.

How did you prepare financially for your first baby?

We did not do much to prepare specifically for a new baby. We did focus on setting ourselves up for financial success as early as high school though. My wife and I could have easily got private student loans and went to a major school, but opted for State Universities because it made more sense fiscally. We both selected a major that would lead to lucrative careers. We started saving after our first paychecks in our 401(k)’s IRA’s and taxable accounts. We each lived with our parents for a year (her) or two (me) after graduating to build up a savings cushion. We bought a condo when I was 24 to grow our wealth (that one did not exactly work out as planned). By the time we were expecting our first son, our financial position was very strong. My wife was entitled to a 6 month (mostly paid) maternity leave as well. Any decrease in income during that period did not impact our day to day lives.

How did lifestyle changes relating to the baby change your financial situation? i.e. eating out less, drinking less wine, fewer concerts, etc.

It’s funny, at first we were probably better off financially. Before our first was born we were spending money pretty freely on restaurants and other entertainment. Afterwards we stayed in much more often and the savings probably outweighed the spending on diapers and other baby consumables. Drinking some wine with dinner at home is much less expensive than doing the same in a bar or restaurant. We are lucky to have two sets of grandparents and siblings that are willing to babysit for us which is amazing. It lets us get to any event that’s really important to us. On the other hand, the random last minute dinner dates were quickly eliminated because babysitters need to be planned for and organized.