How to Make a Nanny Budget
Kids are expensive. Adoption, fertility services, and giving birth come with their own big costs. People seem aware of that, as well as the long term costs of care and school. The first few months with a new child are their own special time of adjustment. Your home will never be the same, there is a new member of the family, and they have a lot of needs.
The time to get ready is before the child arrives. With enough planning, those first few months can be spent focussing on this new normal - not worrying about money. Before a new child arrives we ask that clients start setting aside in their budget the extra costs they are about to have -, diapers, formula, and (most importantly) childcare. Sitters, nannies, and daycare are all surprisingly expensive. Before the new child arrives, make a list of the new expenses you’re going to have, t. Then start setting aside that amount into savings. We call this the “Nanny Budget.” In this scenario, you have done your big expenses already and prepared the child’s space in your home. Budgeting this way lets you get used to what finances will feel like when the child is home. If it goes well, you’ll have some extra funds saved, but importantly, it’s an opportunity to fail and learn while you don’t have an extra mouth to feed and you are hopefully still getting some sleep!
Nanny Budget TLDR:
Add up the approximate new monthly costs you’ll have when your new child arrives
Consider costs of diapers, food, formula, and childcare, as well as prepared meals to reserve bandwidth and sanity
In the months before welcoming home a child start saving that much in your monthly budget
If it goes well you will have extra savings, its at least a chance to learn