Money Management for Having a Baby: Creating A Budget

Having a baby increases your monetary spending. A budget or spending plan is a way to keep track of your money. It is especially helpful when your expenses change. Before creating a budget - you need to figure out the WHY. To begin, write down the answer to the following question: Why am I doing this? After you have come up with your reason(s), write down all your monetary goals and then prioritize the top few. Those are the ones to focus on! The first step in building a budget is to track your spending. Ask yourself questions such as - How much am I spending on groceries? How much am I spending on transportation?

Decide which budgeting strategy is right for you.

50/30/20 Budget rule: 50% for your NEEDS (housing, utilities, groceries), 30% for your WANTS, 20% for your SAVINGS (retirement, investments, save for a house).

Zero-Sum Budget: Every dollar is assigned a job.

Once you decide which budget style to use then you can start managing your finances. You can create a spreadsheet to track your spending or use a third-party digital tool.

Please remember that you can review and change your budget to improve the outcome. It is beneficial to periodically review your budget to assess its success.

(Money Management International, 2025)