A new baby means new expenses with the same or lower income (if one parent stays home full-time). A 2007 report issued by the U.S. Department of Agriculture indicated that the average American family will spend nearly $15,760 in the first year of a new baby's life.*

But don't let this figure scare you. Advance planning, a smart budget, and commitment will allow you to provide for your baby's needs, as well as your own. Here are some guidelines to follow:

• Track all income (money coming in) and expenditures (money going out)
• Evaluate expenditures and determine where cuts can be made on perks or non-essential spending to free up money
• Pay down any credit card debt and readjust credit card spending
• Establish a budget that accounts for necessary monthly expenses such as rent, utilities, food, car and debt payments
• The amount left is the discretionary income you have to spend on baby necessities and investing for your family's future

Knowing where you stand financially and establishing a realistic budget will help take some of the stress out of other decisions you will have to make, such as whether a parent should stay home or if you should use daycare.

Every parent wants to be there for all the milestones in their child's life, but if you've worked hard to build a satisfying career, giving up that career may be easier said than done, especially if your family is dependent upon your income.

Whether you decide to stay home or go back to work, there are some options to take into consideration:

• Corporations are offering more flexibility than the typical 9-to-5 work hours, in order to accommodate employees and their families
• Part-time work, time-share programs, and telecommuting arrangements are becoming more commonplace in corporate America
• Parents who stay home full-time to raise their children are still finding ways to remain vocationally active through volunteer work, night courses, or working at home

When it comes to choosing a daycare provider, most experts agree that what matters most is not the type of childcare you choose, but rather the actual caregiver. It is vital to find a caregiver who is loving, attentive, experienced, encouraging of your child's development who makes your child feel comfortable.

Openings can be limited at home daycare providers or reputable centers in your area. Starting your search early may allow you to get on the waiting list of your top choices.

Your little bundle of joy is finally home! Your life no doubt is a flurry of activity with family, friends and other well-wishers, calling and stopping by to meet the newest member of your family.

As your responsibilities change and evolve, so do your needs and goals. Once you settle into your new routine, your thoughts may turn to some of the immediate and future financial needs of your growing family. There is so much to consider, you may be wondering where to begin.

We recommend that you start by determining your priorities, which may include such items as:

• Funding your child's education
• Having disability income insurance to make sure you can maintain your family's standard of living in the event of a debilitating accident or illness
• Obtaining life insurance to help ensure your family's financial security
• Saving for life's pleasures... vacations, a new home, a new car

Starting a family is without question one of the most exciting times in your life, but it can also be one of the most challenging. With a growing family you may have additional needs for life and disability insurance, as well as a plan to financially prepare for your child's college education.

Contact a Northwestern Mutual Financial Network representative today to help guide you and your family toward a more financially secure future. Your representative will work closely with you to develop innovative long-term solutions that will help you meet your financial goals and needs as they evolve over time.