Saving for the Expected: The Baby Fund

January 13, 2010 by Chelsea
Filed under Children, Piggy Bank, Planning

Deniz Ongar

I often hear the old adage, “Save for a rainy day”, in reference to unexpected occurrences such as unemployment, health issues, and accidents. But I rarely hear people express the need to save for major expected expenses that can just as easily derail your budget and potentially lead to unwanted debt.

Last year we were fortunate enough to bring baby Sweet Pea into our home. Although we have great health insurance, we still knew that we had to make room in our budget for medical expenses associated with her birth.

Shortly after we found out we were pregnant, I started doing my research on the estimated costs for a routine delivery in our area. I looked into various doctors, hospitals, etc. and after extensive online research and numerous phone calls I felt confident estimating the cost to deliver our baby.

We put our emergency fund savings on hold for a few months and funneled all of our savings into “The Baby Fund”. After this was fully funded we returned to building up our emergency fund.

My estimation for the cost of her birth, was roughly accurate. The only reason we had to dip a little into savings was an extra day in the NICU.

Knowing that our baby was paid for without going into debt, allowed us to fully enjoy her without worrying about finances.