Baby Balance Sheet: A Family of 3 Living in Westchester, NY on $310K

The newest edition of Baby Balance Sheet features a family in the New York City suburbs who are preparing for the arrival of their second baby next spring. But this time around, they won’t have the same paid family leave they enjoyed with the birth of their first child. Due to a job change, neither of them has access to fully paid maternity or paternity leave, and so they are working to save $20,000 to cover the difference.

Their story is not unusual. According to the National Partnership for Women and Families just 27 percent of Americans have access to paid family leave through their employers. While there is a growing number of states that offer benefits, the U.S. is one of only a few nations that doesn’t have a federal paid leave policy.

That can make it difficult for families, many of whom are already preparing to shoulder the expense of childcare. Today’s family shares that paying for childcare for two kids is one of their biggest concerns—even with a healthy six-figure combined income. 

Read on to see how they are managing their budget and preparing for baby number two. 

About me: I’m married and live in the New York City suburbs with our toddler and a baby on the way. I work in senior leadership at a nonprofit, and my husband is a lawyer.

Age of parents: I’m 35 and my husband is 38.

How old is your child(ren)/when is your baby due?

We have a two-and-a-half-year-old, and I’m due with our second in March 2027.

Where do you live?

Westchester County, NY

What is your family’s household income?

$310,000

Did you have a savings goal before your baby arrived or are you working toward one now?

We didn’t have a savings goal with our first, but we’re aiming to save $20,000 before our second is born. This time around, our parental leave policies are different. My husband used to work for the federal government, and he got 12 weeks of paid family leave last time, plus he was able to use some of his sick leave. This time, both of us are relying on New York State paid family leave—which I’m grateful we have access to—but it doesn’t cover our full salaries, so we’re trying to save the difference.

We started setting aside money when we decided to start trying to have a second baby.

What kinds of financial tools (or tricks!) are you using to help reach your savings goals?

We use automatic transfers and spreadsheets to help manage our finances and savings goals. Our bank allows us to have different savings “buckets” and so we have a bucket for the goal of saving for our family leave.

Are you setting up any savings accounts for your baby—like a 529, custodial account or something else? If yes, what kind of account(s) are you using?

Yes, we put $350 a month into our daughter's 529, and we will set one up for our baby.

If you’re setting up a savings account for your baby, are you hoping friends or family might contribute to it too?

No, though my grandfather did give us some money for our daughter's 529. My parents had some leftover money in my 529, and so they are gifting it to my kids. It won’t cover the full cost, but it’s incredibly helpful.

When it comes to money, what part of having a baby (or raising a kid) feels most stressful?

Childcare. Our daycare just went up by $300 a month, so I’m very nervous how much it will be by the time our second is born, and infant care is always more expensive.

Are you receiving (or will you receive) any family help for paying for baby expenses?

Our parents have paid for some meals and groceries when we are together, and my husband's father has paid for our flights to visit them. 

Can you share how much you spent on your baby in the last month? 

Daycare: $1,597

529 contribution: $350

Diapers and wipes: $0 because we just potty trained!

Food: It’s hard to say but probably about $150–$250. When our daughter is home, she largely eats the same food as us (with a lot more Goldfish and fig bars). Her daycare provides all meals and snacks while she is there and that is not charged separately. We garden a lot in summer, and get our meat from a CSA that we paid for in the spring. We rarely eat out.

Clothes: $0 this month, but we budget $100 a month, spread out over the year. We have been fortunate to get a lot of clothes secondhand, so we probably spend less than this.

Books: $50, but this is not a regularly monthly expense as we use the library a lot and have been gifted books by family and friends.

How much do you discuss the cost of raising a baby with your partner? 

In general, we talk about our finances regularly, and budgeting for our kids is part of that.