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How to get money for a newborn baby?

Published in Newborn Financial Support 4 mins read

Securing financial resources for a newborn baby involves exploring various avenues, including government schemes, employer benefits, and personal financial planning. Preparing for the costs associated with a new baby is crucial for a smooth transition into parenthood.

Government Support Schemes

Several government initiatives are designed to provide financial assistance to new mothers and families, especially for their first child, aiming to improve maternal and child health outcomes.

Pradhan Mantri Matru Vandana Yojana (PMMVY)

The Pradhan Mantri Matru Vandana Yojana (PMMVY) is a flagship scheme providing financial support to pregnant women and lactating mothers for their first living child. This benefit is intended to help cover some of the costs associated with pregnancy and childbirth, promoting health-seeking behavior.

  • Financial Aid: For the first child, a maternity benefit of ₹5,000/- is provided in two instalments.
  • Eligibility: Pregnant women and lactating mothers for their first live birth.
  • Purpose: The scheme aims to compensate for wage loss, ensure proper rest and nutrition during pregnancy and after childbirth.

Janani Suraksha Yojana (JSY)

The Janani Suraksha Yojana (JSY) is another key government initiative that works in conjunction with PMMVY. It is a safe motherhood intervention under the National Health Mission (NHM) to reduce maternal and neonatal mortality by promoting institutional delivery.

  • Cash Incentive: Beneficiaries of PMMVY are also entitled to receive a cash incentive as per approved norms under JSY after institutional delivery.
  • Combined Benefit: This means that, on average, a woman can receive a total benefit of approximately ₹6,000/- when combining the support from PMMVY and JSY for her first child delivered in an institution.

For more details on government schemes like PMMVY, you can refer to official government portals such as the myScheme website.

Employer Benefits

Many employers offer maternity and paternity benefits that can significantly help with the financial aspects of welcoming a newborn.

  • Maternity Leave Pay: Most companies provide paid maternity leave, which can range from a few weeks to several months, ensuring continued income during the post-delivery period.
  • Paternity Leave: Fathers may also be eligible for paternity leave, offering time off to support the family.
  • Childcare Support: Some progressive employers offer direct childcare subsidies, on-site creches, or tie-ups with external childcare providers.
  • Health Insurance: Employer-provided health insurance plans often cover maternity and newborn care expenses.
  • Flexible Working Arrangements: Options like work-from-home or flexible hours can help reduce childcare costs and manage work-life balance.

Financial Planning and Budgeting

Proactive financial planning is essential to manage the expenses associated with a newborn.

  • Create a Baby Budget: List all potential expenses, including one-time costs (crib, stroller) and recurring costs (diapers, formula, doctor visits).
  • Emergency Fund: Build an emergency fund specifically for unexpected baby-related expenses or income disruptions.
  • Cost Analysis: Research the average cost of baby essentials in your area to set realistic financial goals.
Category Estimated Monthly Cost (Example)
Diapers ₹1,000 - ₹2,000
Formula/Food (if applicable) ₹2,000 - ₹5,000
Clothes ₹500 - ₹1,500
Doctor Visits/Medicines ₹500 - ₹1,000
Childcare (if applicable) Varies significantly

Note: These are illustrative figures and can vary based on location, brand choices, and individual needs.

Savings and Investments

Starting early with savings and investments can provide a financial cushion for your child's future needs.

  • Dedicated Savings Account: Open a separate savings account specifically for baby-related expenses or future needs like education.
  • Child Plans/Investments: Explore financial products such as Unit Linked Insurance Plans (ULIPs), Sukanya Samriddhi Yojana (for girl child), or mutual funds that can grow over time for your child's education or marriage.
  • Gift Money: If family and friends offer financial gifts, consider putting a portion into a dedicated savings or investment vehicle.

Community Support and Grants

Beyond formal schemes, local communities and non-profit organizations often offer support for new parents.

  • Local Charities/NGOs: Some organizations provide free or subsidized baby supplies, parenting classes, or support groups.
  • Second-Hand Items: Consider purchasing gently used baby gear from online marketplaces or local groups to save money on expensive items like strollers, swings, and clothes.
  • Parenting Networks: Join local parenting groups for advice, hand-me-downs, and emotional support.

By leveraging government schemes, understanding employer benefits, and diligently planning personal finances, families can effectively manage the costs of welcoming a new baby and ensure a secure start for their little one.