For a young family, there’s no greater joy than the arrival of a new baby. There’s also no greater expenses than a newborn. Often times, preparations for the new arrival can cost a family their entire income for a few months, and if the young one needs special care, finances can stretch thin quickly. Fortunately, the birth of the baby can be a good time to practice creative financing.

Preparations should begin well before the due date. This can be a good time to look for unused baby items from family and friends. Take note that baby items such as clothes and carriages will only be used for up to a year, so there’s no sense spending too much on items that won’t be useful for long.

These preparations should also take into account the child’s future many years from now. Think ahead to college as a penny saved here can grow to substantial proportions by the time the baby leaves the nest.

Even with all of these financial preparations, the couple must get used to the fact that they won’t have the disposable income that they’re used to. There will be times when the budget simply won’t allow for small luxuries. Still, the luxury of a newborn is priceless when compared to all of these material things.