“I mean,” you think to yourself, “how much could such a little person cost?”

You might be surprised to know that the U.S. Department of Agriculture can answer that question for you. Since 1969, it has published a report called “The Annual Expenditures on Children by Families.” The report estimates the cost of raising a child from birth to age 17. Year after year, this report reveals that a little person can cost a whole lot of money indeed.

The most recent “Annual Expenditures on Children” report was published in April 2007. It states that the total cost of raising a child from birth to 17 years old is between $200,000 and $300,000 - depending on a family’s income and where they live.

Big numbers like those are overwhelming, but new parents can look at a smaller picture and reflect on the annual expenses of raising a child in order to plan wisely. Again, the USDA report comes in handy. It states that families with pre-tax incomes of less than $44,500 spend about $7,580 annually on their 0-2 year old children. Households earning $44,500-74,900 spend $10,600 on children this age and those who make more than $74,900 spend $15,760 a year on these young children. Across income groups, expenditures increase as children grow older.

After weeks of broken sleep, your first instinct might be to say you’re too tired to think about how your new baby might affect your finances. You just want him to sleep through the night; you can’t begin to think about how you might pay for his violin lessons someday. But, given numbers like those in the USDA report, all new parents should stop, make a strong cup of coffee, and give their financial future a long, steady look.

A NEW BUDGET FOR A NEW FAMILY CONFIGURATION

If you haven’t used a budget to manage your family’s finances in the past, this is a good time to start. New parents are often surprised at how the arrival of their baby affects spending in all areas of their lives.

Expenses that you might consider “fixed” increase with each new family member. Utility bills rise as soon as baby comes home. Couples use more water and often maintain warmer homes in the winter and cooler temperatures in the summer to keep their young children comfortable. Parents spend more money on gas than before having children – either because of a larger, safer car – or because of new trips to daycare and other child-related destinations. Health care costs rise with more frequent co-pays for medication and doctor visits. Not all insurance covers required immunizations either. Even entertainment spending grows when, on top of the cost of a night out, you must pay a babysitter.

Not only do existing expenses grow but significant, new ones are added. Two new and large everyday baby expenses are, of course, diapers and formula.

New parents can expect to spend up to $2500 on diapers between birth and the time a child is potty-trained. Although older babies require far fewer diaper changes than a newborn, most toddlers go through a long, transitional time before being fully potty-trained. During this time they wear expensive, “pull on,” training diapers.

Using cloth diapers with a diaper service costs approximately the same amount as disposable diapers. Parents who choose this option do so, primarily, to lessen the environmental impact of their baby. The cheapest solution to diapering is to wash your own cloth diapers. This can save more than $1,000 over time, but, clearly, it isn’t a commitment many parents are willing to make.

Aside from the costs of diapers and wipes, another cause of “sticker shock” for new parents is the cost of formula and baby food. A conservative estimate of the cost of formula for a baby’s first year is $1,500. An obvious solid financial choice, then, is to breastfeed your baby. As well as saving money on formula, the health benefits of breastfeeding are numerous. (For more on the rewards of breastfeeding, see the La Leche League website at www.llli.org.)  Even when factoring in the costs of nursing clothing and renting or buying a breast pump, breastfeeding provides significant savings to parents.

If breastfeeding isn’t an option, parents can save money on formula by:

• visiting the manufacturers’ websites (most offer money-saving coupons),
• buying powdered formula in bulk from warehouse stores like Costco and Sam’s Club, and
• asking pediatricians to recommend a generic or store-brand formula.

When your baby graduates to baby food, consider making your own. Buy a few jars of baby food and get to know your child’s favorites. Note the consistency of the food and begin to experiment at home. Cooking fruits and vegetables, mashing them, and then freezing small portions in ice cube trays is an easy and cheap way to nourish your baby. Your pediatrician will recommend which foods – and in what order – to introduce to your baby at different ages.

Financial planning experts agree that making and keeping a budget is an important way for anyone – especially those suddenly faced with providing for a baby - to keep their spending under control. There are many books and websites that offer budgeting information and tools.  Some of the better websites that offer free budgeting tools are www.budgettracker.com, www.debtsteps.com, and www.betterbudgeting.com.

THINK LONG AND HARD BEFORE BUYING EQUIPMENT AND TOYS FOR BABY

Your budget will likely include a category for “miscellaneous” expenses. The excitement of preparing for baby makes some parents throw their usual financial caution to the wind and overspend in this category. You may be swept away by that adorable stuffed animal or convinced that you need every possible safety device to protect your child.

In order to keep from breaking the bank, new parents should pause before buying toys or gadgets for their babies. Although their catalog descriptions claim that you can’t live without them, items like wipes warmers, video baby monitors, fancy diaper pails, and electronic play mats are not in fact “essentials.” Ask friends with older children which baby gadgets and toys they found most helpful.

SEEK OUT QUALITY, USED BABY GEAR

You likely have a neighbor or relative who uses the term “garage sale” as a verb – as in “I love to garage sale.” When you’ve decided to buy something for baby, tell this friend what you are looking for – a certain type of stroller, a bicycle trailer, a high chair, or a bath seat. This will give your friend new purpose in her weekend quests and save you a lot of money. When you drive past a garage sale yourself, slow down and take a quick look.  If you see numerous baby items on display, jump out of the car and take a look.  Read the ads in the local paper. Call around or check local churches’ websites – many hold annual sales of children’s goods. Check www.ebay.com for clothing, furniture, or other necessities.  (You can even buy formula coupons on ebay – check it out!)

Babies grow fast and that bouncy chair or baby bath seat – as useful as it is for a month or two – will soon be relegated to the basement or attic. Don’t bother to buy it new. If someone offers you hand-me-downs, always accept them. Sort them by size and keep them in labeled boxes or bins where you will see them – perhaps in your baby’s closet.

Your baby’s first smile is indeed priceless, but all the paraphernalia that keeps her safe and healthy can cost a small fortune. Plan wisely, and next time you come face to face with that giant stuffed teddy bear, you might want to consider turning around and giving him a friendly wave as you walk out of the store

One way to start shaving dollars off of that big chunk is to shop for your baby on a budget. “Spend sensibly and stick to your budget,” says financial consultant Joan Black. “One of the most important things you can do is to remove your heart from your wallet.” Because mothers and fathers love their children or are excited about having a baby, they can end up spending a lot more than they originally plan to. Joan offers moms and dads some practical advice for shopping on a budget.

1. Make a list and stick to it! This is especially true for women who are pregnant and shopping for the new baby. Most of the time, women are so excited to be having a baby that they could purchase the entire store before realizing what they are doing. The best way to avoid this is to make a list. When you have the list in front of you of the things you need, you will be less likely to purchase impulsively.
2. Avoid purchasing unnecessary items. Again, when Mom and Dad become excited, they end up buying things they don’t really need and that Baby doesn’t really need. There are so many necessary products that will make life for parents a lot easier. Some of those products might include a thermometer, receiving blankets and bottles. However, there are a ton of things that parents don’t really need, such as baby wipe warmers, bottle warmers and even bottle sterilizers. You can simply hold the wipe between your hands for a minute so you don’t freeze your baby’s bottom. You can also warm the baby’s milk by running the bottle under hot water for a few minutes or sitting it in a pot of hot water for a few minutes. Remember to always do the wrist test and shake the milk so there are no ‘hot spots.’ As far as sterilization goes, boiling water is the best and easiest way and you really only need to sterilize them when they are brand new as long as you wash the bottles in hot, soapy water shortly after the feedings are over.
3. Don’t buy expensive clothing. Babies and children grow so quickly that buying expensive clothing is really not a good idea. Your child may even only wear a great outfit one time before they outgrow it! Imagine spending $50 on an outfit that your child will get to wear once! Instead, purchase cheap items from discount stores or used clothing from thrift stores or yard sales. Doing this, you will be able to purchase several outfits for the price you would pay for one outfit in a department store. If you’d like to purchase one or two great outfits for special occasions, you can still save money by purchasing every day clothing from discount stores, thrift stores or yard sales. You can even buy brand new things from these places for a bit of nothing.
4. Buy generic items. When you are purchasing things for your baby, you don’t have to buy the popular brand names. Rather, purchase the cheaper, generic brand of bottles, pacifiers, nipples, receiving blankets and other items. Many of the brand name items have parts that will not work universally. So, if you have a bottle that is Graco and you have a generic bottle, the nipples and rings may not fit. Of course, this is great for the companies, because if you have a Graco bottle and the bottle breaks but the nipple ring and such is fine, you will spend more money on their company by replacing the bottle. You can avoid paying larger prices to begin with, as well as paying larger prices to replace pieces by simply buying the generic brands to begin with.
5. Wait until the last moment to purchase things for the baby on his or her way. Studies have been done which show that women who wait until the end pf their pregnancy to purchase baby items. First of all, you will probably receive several gifts from friends and family and knowing what you have will help you shop on a budget. Secondly, you have been really excited, so shopping months in advance will aid in you spending much more money.

“Sure,” says Joan. “Children are quite expensive. However, using these tips, you can save a great deal of money. A few other tips including getting free items from family members who have had a baby and have saved their stuff, checking for discounted items online and more. Use your creativity and imagination and you will be able to keep from spending a fortune on your baby, stick to your budget and get out cheaply and quickly!

I agree. Going green can be a bit more costly to begin with. But in the long run, it’ll pay off. Not just environmental-wise, but pocket-wise as well as health wise.

So what are some of the ways in which you can go “greener” without breaking your budget? Here are a few suggestions:

1. Recycle! I recycle all of my tin cans, milk jugs & glass. The green part? You’ll get “green” bills returned to you!
2. Use cloth diapers. Cloth diapers these days are much easier to use. You no longer have to use the traditional cloth and safety. Cloth diapers now come in velco or snaps to make cloth diapering convenient.
3. Cloth diapers still turn you off? Use biodegradable, chlorine free diapers. Did you know that 50 million disposable diapers enter the landfill every day and they stay there for up to 500 years? Yep. That number is amazing, isn’t it? Actually, these biodegradable, chlorine free diapers are not that much more expensive. Offset the extra few cents per diaper from the recycling you’ve done! Need a recommendation? Try Seventh Generation diapers.
4. Use your own canvas shopping bag instead of the traditional paper or plastic when grocery shopping. Or even an extra large tote bag will work. As long as the bag is sturdy enough and large enough to hold your groceries.
5. Use tupperware to refridgerate or freeze your leftovers instead of ziploc bags. Tupperware is also reusable so you won’t have to buy another box of ziplocs when you run out. I try to wait until the after Christmas sales and get them for 50% off. Who cares if my tupperware has Santa Claus, Christmas trees, and snowmen on them?
6. Switch to energy efficient light bulbs. Not only are they better for the environment, but they’ll save you money on your energy bill!

If you have any other ideas, suggestions, or would like recommendations on how you can get greener, post a comment below and I’ll try my best to respond. Just remember, going green doesn’t have to break your piggy bank!

Enjoy reading this article? Click here to read our other Earth Friendly articles.

Then I realize I forgot to move my car off the street and onto the driveway last night. It was Street Cleaning Thursday. The ticket was $45. That’s 4 bags of diapers. Sigh.

If you can relate to that story, then you can understand when I say: “It’s really the baby’s fault! I’m usually pretty good about that stuff!”

It’s frustrating to just “give” the bank that kind of money, isn’t it? A few months ago, I realized that a bit of organization really can put a few extra bucks in my purse! Here are a few simple suggestions to help manage your monthly bills:

1. Use Microsoft Outlook. You can avoid late fees and accrued interest by setting monthly reminders in your Outlook.
2. Many cell phones have a built in calendar with reminders. You’ve already paid for the phone and you’re already paying the monthlies so why not give your cell phones another function?
3. If you’re like me and are more old fashioned, then you probably prefer to write down dates. In this case, buy yourself a day timer. Costco has great starter kits.
4. Set up automatic payments from your bank account so that you don’t miss a payment. Just make sure you have enough money in your bank account so you’re not paying overdraft fees.
5. See if the billing company has an email reminder option. They can send you an email a few days before the bill is due. This is usually a free service so use it to your advantage.

The catch to any of these suggestions is that you must use them. There is no point in setting up dates in Outlook if you don’t use your computer often.

Pick one way to keep track of your bills and stick to it. Just remember the 3 cans of formula or the 4 bags of diapers that you “gave” the bank just because you are not organized enough to pay your bills on time.

The truth of the matter is, it really is your fault

1. Free Classifieds Ads Sites:
Classifieds ad sites are great because it brings two kinds of people together: People that want something, and people that offer something. Among the top choice are Craiglist.org, Gumtree.com, Kijiji.com, USFreeads.com, which you may be familiar with.

The one you should pay special attention to in particular is Craigslist.org, which is the 59th most popular website in the entire world according to Alexa.com’s ranking. Unlike eBay, these sites allow you to post ads to advertise your product or service free of charge. So take advantage of it.

2. Press Release Sites:
If you have something newsworthy for your business, for example, if your work-at-home custom soap making business had just come out with a new line of soaps, then you should consider writing up a press release and submit it to press release announcement websites. Here is a list of over 100 top press release announcement sites:

http://www.netpassiveincome.com/list-of-press-release-sites/

Although most of the press releases on here are free, note that some do require payment.

If you have some budget (around $100), pay special attention to PRWeb.com and WebWire.com. They are not free, but very effective in spreading news about your business.

3. Participate In Online Communities:
This particular technique works quite well if you have a website for your business. Take our soap making business as an example. Go in Google and search for “soap making forums” or something similar to that. Then browse through the top listings and look out for online communities or discussion boards that are related to your business.

You would then register for an account, and start participating in those online forums. Usually you are allowed to enter a website URL in your profile as your signature. That signature with your website URL will be appended to every forum post that you make, which provides another way to get traffic to your website.

Be sure to contribute to the forum and don’t spam! Remember, you are establishing relationships with other people in the community, so be sure to provide value and people will follow your forum posts and find a way back to your website.

Steven C, Online Business Mentor, http://www.netpassiveincome.com