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The final post in this week’s series of managing finances during major life changes comes from our friend Pete over at Bible Money Matters, who’s a brand new father!

A few weeks ago my wife and I had our first child, our little boy named Carter John. We’re both overjoyed at becoming first time parents, and we both agree that there’s nothing quite like welcoming a new life into the world. The overwhelming joy and happiness that comes along with being a parent can’t compare to anything I’ve ever known.

While becoming a parent has been a wonderful journey for us, it hasn’t been without it’s surprises. As any parent can tell you having a child isn’t all rainbows and unicorns. It does have its costs, some of which I hadn’t really anticipated.

Unexpected Financial Costs Of Having Children

My wife and I are probably above average when it comes to financial preparedness. We had anticipated quite a few costs associated with having a baby, which I wrote about in my post “What Expenses Should I Expect When Having A Child?“. In the post I talked about a lot of the expenses new parents can expect including baby furniture, diapers, baby clothing, formula, medical costs and the cost of child care.

While I think the post nailed a lot of the expenses to expect, what I didn’t anticipate for some of them was just how much they would be.

Diaper Costs

For example, I underestimated just how much diapers, wipes and other associated diaper products would cost us. Since day one our son has had quite the robust gastro-intestinal tract, filling his diapers in excess of 10-12 times per day some days. While I expected to be changing a lot of diapers – I didn’t expect to be changing quite as many as I have. In fact, we’ve already gone through a couple of packs of diapers, 2 packs of wipes and an entire tube of baby butt salve. In the end I think we’ll be spending a lot more on diaper care than we first realized.

Eating Out Costs

Another place that we knew we would be spending some money after the baby was born was in our eating out budget. As with diaper costs, however, we grossly underestimated just how much we would be spending. We didn’t realize how tired we would be, and how unmotivated we would be to start cooking right away. Because of that we’ve spent quite a bit on eating out. Thankfully we’ve been saved to a degree by friends and family who have pitched in to bring us several meals.

Lost Opportunity Costs

One cost I hadn’t anticipated was the lost opportunity cost because of the restrictions on your time. I don’t think I appreciated before just how much time it takes to care for an infant. Caring for a baby is a full time job, with constant feedings and diaper changes, and reduced sleep on top of that. It is extremely hard work!

Because you have less free time, it also means less time to devote to sideline income generating pursuits. For me that means less time for blogging, less time for graphic design and less time for researching new money making ventures.

The Financial Costs Are Worth It

So those are a few of the places where I was surprised by the financial impact of having a child. While the increased expenditure (and reduced income potential) haven’t been overwhelming, it has been enough to be noteworthy. If you’re thinking of having a child – be ready. You too will most likely have some unexpected costs that you’ll need to factor into your budget. As long as you’re flexible and are able to adapt, you’ll come out ahead in the end.

What are some other costs associated with having a baby that you were surprised by? Tell us in the comments!

Continuing our series this week on managing finances during major life changes, guest writer Melissa Ezarik shares some great tips on how to exercise(get it?) good judgement when saving for a baby.

With a little one on the way, making room – and gearing up – for baby are top to-do’s. Expecting to focus more on baby than bills after the big arrival? Of course. That’s why you should flex some organizational muscle to improve finances now.

photo credit: Magpie372

Warm-Up:

Have you built up that emergency fund? Having a baby puts things like that into perspective. “People know they should do this, but often don’t,” says certified financial planner Mary Deshong-Kinkelaar of Chicago-based Kinkelaar & Associates, which offers financial life planning services and advice. Also stock up on toiletries and pantry items when you see good sales. Emergency purchases can blow your post-baby budget.

Cardio:

If you aren’t already banking online, you should start. Deshong-Kinkelaar recommends setting up email alerts to be notified of certain transaction values. Request a daily activity log, sent to your in-box, to help monitor and take control of your finances. Mint has great and free online tools to help you do this.

Decide how you’ll pay bills online: from your bank site, via vendor sites, or through automatic payments (only for people with “a really good handle” on cash flow, she says). Use email alerts through a calendar program like Outlook to help with budget and keep you on schedule.

Finally, build clutter-clearing endurance now and avoid losing your baby in paperwork piles. Sort mail as soon as it arrives – “needs action,” “save,” or “read.” Toss what remains.

Strength Training:

New-to-you shopping options online for baby are tempting. To avoid mail overload (and subsequent temptation!), do not provide your contact information. “You can end up on lists you never knew existed,” cautions Deshong-Kinkelaar. Opt out of mailers as you make purchases. To get off multiple lists at once, visit www.catalogchoice.org.

Stretch:

Every body – and financial situation – is different. Regularly discuss what’s on your “money radar” with your spouse, Deshong-Kinkelaar advises. And in between ob-gyn appointments, schedule time with a “financial doctor.” Planners can assist with the big-picture (e.g., college savings, taxes) and day-to-day cash flow to help your budget. “A few dollars misspent here and an overdraft there can add up,” reminds Deshong-Kinkelaar. “If you don’t take care of your money, it won’t last long enough to take care of you” – or your growing family.

Yesterday’s post was about the big financial changes couples face before marriage. But if that marriage ends in divorce, it carries a whole new set of financial implications. Guest blogger Dawn Allcot is a full-time freelance writer and editor who frequently covers personal finance and credit topics. She believes these tips are smart money advice for anyone – whether they are single, divorced, or happily married.

Divorce can be emotionally – and financially – harrowing. When you’re in the midst of one, it can seem like everything is spiraling out of control, often at the expense of your heart and your wallet. According to experts, it is possible to take control of your finances, which will play a big role as you build a new life.

photo credit: reegmo

1. Guard your budget like you’re guarding your heart.
Although it’s not in your best interests to keep your heart guarded forever, keeping your budget on lock-down is advisable, says Lisa C. Decker, a certified divorce financial analyst who has counseled hundreds of divorcees in and around the Metro Atlanta area, as well as around the country by phone. In addition to those divorce expenses, you are probably facing a whole new set of bills, which is why maintaining a strict budget is more important than ever if you want to take control of your finances. “If you see you’re going to be short at the end of the month, anticipate and look for solutions,” Decker suggests, including getting vocal about your situation. Some credit card companies allow you to temporarily stop payments during major life events, which can include divorce.

2. Make new plans for the future.
If you received a settlement from the divorce, seek advice to find the best investment options to improve your finances. Do you need monthly interest dividends that will help with budget, or do you need stable, long-term investments that will enable you to save for retirement? “Working with a quality financial planner to maximize and potentially protect your settlement can bring much-needed peace of mind after riding the emotional roller coaster of divorce,” Decker says.

3. Avoid “Til debt do you part.”
Now is not the time to say, “I don’t care what he/she does anymore.” Rather, to take control of finances, stay on top of the paperwork and make sure all joint accounts are severed, including bank accounts, retirement accounts, and credit cards. “If you’re still attached by joint debts, make sure you get duplicate copies of the statement, otherwise your credit will be ruined if your ex can’t or won’t pay,” Decker says.

4. Move on!
After the divorce is finalized, you can and should establish a new bank account in your own name. Many adapt a whole new way of thinking when it comes to life after divorce, including how they manage their money. Meet with a financial advisor to assess your current situation and help with budget, and consider switching banks – many online banks offer a convenient, free way to manage your money.

Breathe a sigh of relief in knowing this will all soon be behind you. With the right planning and mindset, you can be richer in every way.

Have you gone through a divorce recently? Did you emerge financially unscathed by following tips like these?

Yesterday I saw three different commercials advertising back-to-school specials. Can it be that close already? I’m done with school now, and it will be a while before I have school-aged children, but back-to-school still feels more renewing than the new year.

This summer, I’m going to change my life. I’m going to do the thing I didn’t think I could do, and when I go back to school I’ll walk the halls with confidence and those popular kids won’t even be able to touch me because I’m so brave and awesome and happy with my life.

This week, to celebrate that feeling of wanting to make a big change before the leaves fall and the weather chills, all of our blog posts will be about handling the finances of major life changes. Moving, divorce, marriage, children – all emotionally-charged life changes that require administrative support, if you will, including some big financial decisions. Deciding to move forward on any of these, in fact, may be dependent on making some big financial decisions first.

Are you dealing with the financial issues surrounding a major life-change? Any tips or stories for our readers?

We just wrapped up a Harris Interactive® online survey looking at consumers’ attitudes toward the recession and how consumer behavior has changed due to the financial crisis. We’ve pulled out a few tidbits for you here:

Relationships

• Among adults who said the recession had impacted them personally, one in five (20 percent) said it had increased the number of arguments in their households regarding money.

• Eight percent of people affected by the recession reported a negative impact on their sex lives. 10 percent of men compared to six percent of women were more likely to say the recession had affected their sex lives.

•  In contrast, of those who said the recession impacted them personally, 23 percent of married people said the recession has brought them closer to their spouse as they managed financial challenges together.

Gender Differences

•  84 percent of women vs. 76 percent of men are more likely to feel personally impacted by the recession. 86 percent of women compared to 80 percent of men are more likely to have taken action because of the recession.

• Among adults who have been impacted personally by the recession, 31 percent of women said the recession made them realize they had been spending frivolously, compared to 25 percent of men.

Parents and Children

• Nearly one-third (31 percent) of adults with teens (13 to 17 years old) in their household reported discussing household finances more openly with their children.

• Among adults who have taken action because of the recession, 15 percent of those with children under 18 in their household have increased the amount of time they spend educating their children on money management.

Age Differences

• The recession has caused younger adults to consider the future, with 48 percent of those ages 18 to 34 reporting it has made them think more about financial planning.

More Change Still Needed

• Twenty-seven percent of those that have a debit card in their own name would rather pay a $30 overdraft fee than have their debit card declined in front of others.

Our CEO, Dan O’Malley, noted “The recession has affected every aspect of our lives, from our bank accounts to our bedrooms, and it’s forced most of us to reevaluate our financial habits. Coupons, comparison shopping and cutting back on discretionary spending are a great start, but it’s also important to look for savings in places you might not initially think about—like considering whether your bank is investing wisely in the things that matter to you.”

Does any of this surprise you? How has the recession affected your behavior?