Thanks all for this group. 1st time expecting dad 🧔🏾.

I’m a little bit all-over the place and not sure where to start financial planning from.

I live in a Tier-1 city and think it’s necessarily to move to Tier-3. It’s important that my kids grow up in a house vs. apartment. Also need to stretch my dollar as far as possible.

Total comp - $180K

How much should I budget for the 1st year of baby?

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It depends on whether you or your spouse will be home for 3 months, 6 months, or 12. Daycare will be your biggest expense if you need to go that way. That’s roughly $250 per week for a tier 3 city. Milk / formula can add up if your spouse doesn’t breastfeed. That’s $50-100 a week, depending of how specialized and how hungry the baby is. Diapers will add another $50 a week. Clothes could easily be $100 a week. Then you have other random stuff you didn’t think of, maybe $500. That doesn’t include healthcare.

Total assuming 9 months of daycare ($9K) and some formula feeding ($2K): roughly $15K. Again daycare is the biggest piece of it.

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Thank you very much SVP1

Make sure you understand the cost of labor and delivery. Might as well budget to hit the out of pocket max on your insurance for that.

Also budget moving to the “family” healthcare plan once baby is here.

Is mom also going to work? Agree that childcare is wildly expensive.

All that said, living in an apartment is fine for the first couple of years. Baby will mostly sleep in your room anyways and we spend a lot of time outside at the park. So no need to flee cities right away.

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Great points PwC1-

No it’s going to be a single income household. Family will help with childcare so hope to save 80% on childcare.

I see what you mean, I could stay in the city for a few more years.

I’m in a similar position with a similar salary. I’ve also lived in Boston and most recently relocated to north Dallas from LA. Politics aside, I will say my dollar has stretched much further and it has created a much more comfortable lifestyle for my new family. One additional cost to mention is a 529 account for college if you want to go in that direction it’s good to start early.

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Thank you. I’m actually looking at Austin, TX too.

Do you live in DC? Asking because they have a great program for new parents that work in the district.

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I live in Boston.

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