We’re Pregnant! Again! Now What?

That’s right! My boys can swim!!!

Haha, okay so technically I already knew that, given that we have a 15-month-old son. But still, very exciting! The due date is 12/21, so it’s going to be a Christmas baby.

Of course, this has introduced a whole round of new to-dos, many of which have a financial tilt. We haven’t gotten into the full swing of things yet, but we’ve started giving some thought to some of them.

Financial considerations for a second baby

I have to say, it feels like overall the second baby is a lot less expensive than the first. We already have the crib, the car seat, the stroller, the changing table, the carrier, the bottles, a lot of clothes, and of course a lot of toys (way too many toys!). Much of the up-front cost that came with a first baby just isn’t applicable to the second, which is really nice.

We do have to prepare a room for our son, which has some cost. Lucky for us we have what’s currently a guest room with a daybed that has a trundle we can use as a toddler bed. We have to buy a mattress for it, but other than that we’re set. We’ll also need a dresser for him, but we think we can find one pretty cheap. This is garage sale season after all.

One of the biggest expenses that we’re facing with an expanding family is the need for a bigger car. You guys were all incredibly helpful with your input earlier this week and I’ve gotten a lot of advice on other forums around the web as well. At this point, I’m actually leaning towards going with a minivan now rather than a small SUV. It just makes sense for a lot of reasons, but we’ll see. This isn’t something we would have to do, but with my car on its way out it’s looking like a purchase we need to make.

When determining our life insurance needs, we did so with a second child in mind, so we don’t need to revisit that topic. We will need to update our wills and our living trust to include the new child, but those are pretty easy to handle. The trust is the beneficiary of our life insurance policies and either the primary or secondary beneficiary for our banking, investment and retirement accounts, so those won’t need to be updated.

We will open up a 529 account for the new baby once we have a social security number for him or her. We had a pretty big initial contribution to my son’s 529 account that came from an old 529 of mine that I never used. We’ve already decided that we’ll take half of that initial amount and move it to the new child’s 529. It isn’t entirely equitable, as my son will have had the benefit of the whole amount earning returns for a couple of years, but it’s pretty close. We’ll start small monthly contributions to the new 529 as well.

Beyond that, there are the additional regular expenses that come along with another child. More diapers, more wipes, eventually more food. He or she (especially she if that’s the case) will get some new clothes and toys. Luckily, my experience so far is that little kids are really pretty inexpensive. So it will certainly add to our monthly expenses, but it won’t break the bank, at least for the first couple of years.

Input welcome

I know that many of you are wise beyond my years to the ways of multiple children. If there’s anything I’ve left out, or if there’s something I’ve misjudged, let me know in the comments. Hopefully we can all learn from each other.

In the meantime, we’re incredibly excited and can’t wait for December to get here. Our son is already running over and hugging my wife’s belly when we ask him “where’s sibling?”, which is incredibly cute, so hopefully he’ll be pretty open to the idea of someone else getting a little attention once in a while. Lots to do before the baby gets here, but it’s all fun.

Other articles I think you’ll like

The Heavy Purse: A great reminder to not let fear prevent you from talking to your children about debt, no matter how dire it feels. Involving them in the process helps everyone.

Financial Samurai: What does it take to be fully happy with what you have? When do you no longer need more to feel satisfied?

On Target Coach: How to be a superhero for your kids.

The Finance Buff: A sneaky way to get your credit card rewards at the gas pump while still paying the lower cash rate.

Edward Antrobus: An incredibly thorough walkthrough of how to perform your own basic car maintenance.

Reach Financial Independence: This one is a guest post from Betsy at ConsumerFu. She talks about the true meaning of frugality, and relays a cool story about the lessons her college-aged daughter has learned about financial responsibility.

Faithful With a Few: It’s so important to distinguish between true emergency expenses and expenses that are irregular but expected. These different types of expenses require different dedicated savings if you’re aiming for true financial security.

Thanks to these carnivals for including me along with some other great posts!

Carnival of Financial Planning
Aspiring Blogger – Personal Finance Carnival
Carnival of Financial Independence
Yakezie Carnival
Carnival of Retirement
Lifestyle Carnival
How to Blog Carnival

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44 Comments... Read them below or add one of your own
  • Your Daily Finance June 21, 2013

    First congrats on the expected new edition. I think we both could use some help with this one. We just had our baby and it feels like the expenses just keep coming in. My kids are so far apart we ended up buying everything over again. Hey no buying the baby Xmas and bday presents all in one!! LOL

    • Matt @ momanddadmoney June 21, 2013

      Thanks! Yeah if ours weren’t so close together it would be a much different story. I would imagine that we wouldn’t have wanted to store all that stuff for years. And we’re actually hoping he/she is a little early so the bday and xmas aren’t so close together. Or maybe we can combine and just give one really big present? Time will tell…

  • AvgJoeMoney June 21, 2013

    Funny: we’re both writing today about revisiting our plans because of family changes, but yours is coming while ours are going!

    Your new son/daughter is going to find out who the cheap people in the family will be. A Dec. 21 birthday is just WAY too close for the cheapest relatives/friends to not create “package” presents.

    • Matt @ momanddadmoney June 21, 2013

      So you can tell me all about the long slog, huh? Haha, the circle of life is a beautiful thing. And yeah, we’ll definitely learn about our family members from this. Don’t you worry, we’ll be tracking every penny received, haha!

  • Laurie @thefrugalfarmer June 21, 2013

    Yea!!! So happy for you guys, Matt! One thing we wished we would’ve done is bought more gender neutral things. After 3 girls, we had a house full of pink, and then our son came along. Buy black or other neutral colored snowpants, hats, mittens, boots and other stuff. Then as your son grows out of them, your next child can use them, boy or girl. And if it’s a girl, hit Craigslist or the garage sales ASAP for clothing and stock up so that out of pocket expenses are minimal. Thanks for sharing the great news, Matt!

    • Matt @ momanddadmoney June 21, 2013

      Thanks Laurie! A lot of our clothes are definitely more boy than girl, so if it’s a girl there will definitely be some shopping. But a good amount can definitely be re-used. We’ll have to go through it and see for sure. But good advice going forward. And also really good call on the garage sales early. I don’t think they’ll be around anymore by the time December hits up here!

  • Holly Johnson June 21, 2013

    Congrats! That is awesome!!!

  • DC @ Young Adult Money June 21, 2013

    Congrats!!! We have no children but hope to some day, so I will probably be going to people like you for advice/input vs. the other way around 😉 We actually went to the hospital just last night to visit our friends who had their second baby on Wednesday afternoon!

    • Matt @ momanddadmoney June 21, 2013

      I’m an open book any time you want. And congrats for your friend! The picture on your blog was wicked cute.

  • Pauline June 21, 2013

    Congratulations!!! I hope Christmas baby will still get a birthday AND a Christmas celebration when (s)he grow up 🙂 That is fantastic news. Thank you for the mention too, have a nice weekend.

    • Matt @ momanddadmoney June 21, 2013

      Thanks! We’re definitely hoping that he/she is born a little early, just so the bday and xmas aren’t right next to each other. We’ll see though. No matter what we’ll figure out a way to make the bday special too.

  • John S @ Frugal Rules June 21, 2013

    Congrats Matt, that’s awesome! You’re right in that the second one is cheaper because you already have so much of the stuff needed anyway. Like Laurie said, look for the gender neutral stuff and do it used if you can. On a side note, gotta love the Seinfeld inclusion…the Kramer boxers/briefs episode was on last night and that one always makes me laugh.

    • Matt @ momanddadmoney June 21, 2013

      Thanks John! And any time I can include Seinfeld in anything is a good day for me. “My boys need a house!”

  • Andrew June 21, 2013

    Congratulations! My wife is due in a month so I don’t have any tips since this will be our first. Our biggest cost will be that eventually we would want to move to a bigger place as we live in a one bedroom apartment.

    • Matt @ momanddadmoney June 21, 2013

      Thanks Andrew! You’re getting close to go-time huh? That first one is pretty awesome. We actually had a false alarm about a month before the due date, and then ended up being a week late. So I had a bag packed for like 6 weeks beforehand. Probably a little over-prepared, haha.

      Upgrading your living space can definitely be a big cost. Lucky for us we don’t have to do that yet, but probably will before the next one.

      • Andrew June 21, 2013

        I wish I was over-prepared! So much to do and so little time. A couple people who have seen my wife have said they think she’ll deliver early so I’m getting nervous! haha.
        Oh and for the minvan if you don’t want those huge minivans that the soccer moms drive…check out the Mazda5. It’s a mini minivan. I looked into that because my wife doesn’t want to drive a behemoth.

        • Matt @ momanddadmoney June 21, 2013

          Yeah, they said the same thing about my wife, which is one of the reasons we had a false alarm. That last month is tough. It could be any minute but it also still might be weeks away. And the thing is, you can’t really be ready. As long as you have a crib and a car seat, the rest is just surviving and figuring it out as you go.

          We’ve definitely looked at the Mazda 5. I’ve had a few people recommend it. I’m actually much less anti-minivan than my wife, but that might have something to do with her being the one who would drive it, haha. Thanks for the suggestion.

  • Debt and the Girl June 21, 2013

    Congrats! I don’t have children but I wish you all the luck in the world

  • Matt @ momanddadmoney June 21, 2013

    Oh yeah, we’re psyched. And yeah, honestly I’m not even sure if you have a baby shower with the second one. Hmm, I guess that’s another thing to figure out!

  • Grayson @ Debt Roundup June 21, 2013

    Congratulations. Your baby will be due near my son’s birthday. He was supposed to be due on 12/21, but he went to 12/27. I am sure you will figure it out.

    • Matt @ momanddadmoney June 21, 2013

      Well, I might be asking you for some tips. But yeah, we’ll figure it out no matter what. If we could at least avoid christmas or christmas eve though, that would be nice.

  • Shannon Ryan June 21, 2013

    Congratulations, Mat!!! I’m so thrilled for you! You’d been hinting about wanting a new baby but I didn’t realize you meant RIGHT NOW! 🙂 My youngest is a Christmas baby (okay, a few days after) too. It sounds like you’re pretty well setup. The only thing we do now is clearly differentiate between our holiday celebrations and Taylor’s b-day. Thanks for mentioning my post too! I really appreciate it!

    • Matt @ momanddadmoney June 21, 2013

      Thanks Shannon! I don’t mess around, haha! Sounds like Christmas babies are pretty popular around here. I’ve definitely got plenty of people to ask for tips on how to handle it.

  • Khaleef Crumbley June 21, 2013

    Congratulations on the new baby (and confirmation of swimmers lol)! It’s a good thing your kids will be close enough in age to enjoy some things together, and far enough apart where you can reuse the toys and clothes 🙂

    • Matt @ momanddadmoney June 22, 2013

      Thanks Khaleef! Having them close together is definitely something that was important to us. But you’re definitely right that having some gap is really helpful as well.

  • Congrats! December birthdays are tough since they are so close to Christmas. Any time two holidays are close together, people tend to lump them together. My wife and my birthdays are the days apart. Her grandmother is the only one who ever sends us separate gifts.

    • Matt @ momanddadmoney June 22, 2013

      Thanks! Yeah the dual gifts is something we’ll have to work to avoid. We’ll just have to figure out a way to make the birthday special too. I think we can get creative. Maybe we’ll call your wife’s grandmother and have her give our families a pep talk!

  • Rachel@Mobilligy June 21, 2013

    Congratulations!! That’s very exciting 🙂 We don’t have any kids yet, but we have a ton of friends who are pregnant right now… it’s exciting that we’re entering that phase of life!

    • Matt @ momanddadmoney June 22, 2013

      Thanks a lot! It’s definitely exciting, and a little weird, to enter that next phase. I have to say that I don’t always feel like I’m ready. Still waiting for that moment when I feel “grown up”.

  • Budget & the Beach June 21, 2013

    Whoo hoo! Congratulations!!!

  • Lindsey @ Cents & Sensibility June 22, 2013

    Congrats on your incoming bundle of joy! It sounds like you’re on top of it with how to prepare for your latest addition to the family and it’s nice you’re just able to avoid the “start up costs” with all you bought with first baby. Exciting news!

    • Matt @ momanddadmoney June 22, 2013

      Thanks Lindsey! I certainly hope we’re actually on top of it and don’t just feel on top of it because we’ve done it before. But I think we’ll manage.

      • Lindsey @ Cents & Sensibility June 23, 2013

        You guys are going to do great, Matt! I’ll be excited to hear updates as they come!

  • Aspiring Blogger June 23, 2013

    Congrats on your new addition, and thanks for the mention!

  • Jules@Faithful With a Few June 24, 2013

    Congrats! I have a 2 1/2 year old and a 1 yr old. The second one was so much cheaper because of the things we already had, but also because when you have your first you think u need every gadget there is. With the second one, diapers, wipes, clothes, and a crib and ur golden! My first was born in December! Best wishes!

    • Matt @ momanddadmoney June 24, 2013

      Oh cool! Your kids are really similar in age difference to what ours will be. I’m excited to have them pretty close together. You’re definitely right about feeling like you need to have everything with the first one. Now that we’re seasoned vets (HA!) we know better.

  • JW_UmbrellaTreasury June 24, 2013

    Hi Matt! I’m late to comment, but wanted to send a belated “Congratulations” to you and your wife. How very exciting!

    And, it sounds like you guys are in great financial shape to welcome another little one into your life. All the best!!

  • Adam Kamerer November 1, 2013

    Hey! Congratulations to you both.

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