The Best Budgeting Spreadsheet for New Parents

Children are expensive. Between diaper changes, doctor’s appointments, and the everyday costs of raising a child, you might find yourself wondering how you can afford it all—especially when you start thinking about long-term financial goals like retirement or paying off your mortgage. The easiest way to stay on track? Budgeting.

A simple spreadsheet template measures your income against your expenses, helping you keep everything in balance.

How to Use the Budgeting Spreadsheet

1. Enter Your Income: Start by entering your total monthly income. This includes your salary, any side income, and any other sources of money coming into your household.

2. Add Your Fixed Expenses: Include recurring expenses like rent or mortgage payments, car payments, and daycare costs. These are the non-negotiable costs you know will occur each month.

3. Estimate Unfixed Expenses: These are the essential expenses that can vary month to month, such as groceries, diapers, and utilities. Estimate how much you’ll spend in each category based on past spending habits.

4. Include Discretionary Spending: Set aside a portion of your budget for non-essential but important expenses, like clothing, travel, or a “necessary” spa day once in a while. These are the items that can make life more enjoyable, but they should be managed carefully to avoid overspending.

5. Track Your Spending Monthly: Regularly update the spreadsheet with your actual spending to see how well you’re sticking to your budget. If you find yourself constantly going over budget in a certain category, you may need to adjust your spending or find ways to cut costs.

Budgeting Tips for New Parents

• Start a 529 Plan Early: Though it may seem early to think about college while your baby is still in diapers, it’s important to start saving as soon as possible. Set a realistic goal for how much you’ll contribute each month. Check out our state-by-state guide to 529 plans.

• Plan for Parental Leave: Factor in any potential loss of income due to parental leave. While most companies offer some form of paid leave, it’s crucial to understand your employer’s policy and how it will impact your budget.

• Prepare for Unexpected Medical Costs: Babies are expensive medically, even with insurance. Out-of-pocket costs for childbirth and early pediatric care can add up quickly, so having an emergency fund in place is essential.

• Adjust as Needed: The beauty of a budget is that it can change based on your needs. As your child grows, your expenses will shift. Regularly review and adjust your budget to reflect your current financial situation and future goals.

Description: A new parent working on a budgeting spreadsheet, helping to manage the costs of raising a child and planning for future financial goals.