How much does having a baby cost? The tally may astound you – estimates range widely from $150,000 to more than $300,000 to raise one child to the age of 18.

“Children are expensive but the cost can be managed with a sound financial plan and an annual budget,” said Stephen Reichenfeld, vice president, Fiduciary Trust Company of Canada, a subsidiary of Franklin Templeton Investments Corp.

There are many ways to save money when having a baby: Start saving. To help ease the financial burden of parenthood, start making monthly contributions now to a Tax-Free Savings Account (TFSA) where your savings will grow tax-free. More information on TFSAs is available on websites like www.franklintempleton.ca.

SPEND LATER
Anxious parents often buy mountains of baby gear in advance of the big day. Only buy the essentials and wait until after your baby is born. This will allow you to determine what suits your baby’s temperament and size.

SPEND WISELY OR NOT AT ALL
New isn’t necessarily better. Babies outgrow clothing quickly and tire of toys. Friends, family, yard sales and consignment stores are a great source of gently-used goods. A baby stroller doesn’t have to set you back $1,000.

“It may be tempting to spend money on designer strollers and baby clothes but this can weigh greatly on the family budget,” said Mr. Reichenfeld. “Check with your family and friends to see if they have items that they want to get rid of.”

Remember, the money you save now can be put towards a savings account or a Registered Education Savings Plan (RESP) for your child’s future.  (NC)