A baby is on the way and there are so many things to think about. One important matter is how a baby will change your financial picture. Here are a few items to think about so you can plan for the change to your budget.

Getting ready

Your new baby will need places to eat, sleep and travel. Cribs, car seats, strollers and high chairs can be expensive. While you may be able to get some of these items second hand to save money, used items may not meet all current safety codes. Save money for these essential items and ensure they will be able to keep your precious bundle safe. Oh, and don't forget about the cost of maternity clothes.

Every day costs

Babies may be small but they make a big impact on your everyday expenses. Diapers, clothing and formula add up. While this will certainly impact your budget, you can decide how big that impact will be. For example, will you use cloth or disposable diapers? Talk to other parents for tips on saving money.

Maternity leave

During maternity leave your household income won't be the same. Take the time in advance to develop a budget you can manage with less money.

Child care

Child care affects your finances whether you go back to your job or you stay at home to raise your child. If you opt to return to your job you'll probably need to pay for child care. And if you decide to stay at home, you may have less income. Either way, the cost of child care needs to be worked into your budget.

Moving

By the time you collect all the baby gear, your tiny little infant is taking up a large amount of space. You may decide you need to move to a larger space to accommodate your growing family. If you are moving from one house to another you're probably familiar with the expenses of home ownership. If you're moving from an apartment, it's important to understand the costs involved in buying a home.

Saving for the future

It's important to save for the future. You'll need to consider your short and long-term goals:

• If you haven't already, begin saving for retirement with a Registered Retirement Savings Plan (RRSP).  Too often saving for retirement is forgotten in day-to-day living expenses.
• You might also consider a Registered Education Savings Plan (RESP) to help with the future costs of education.  By starting early you can take advantage of the government grants.

Update your estate plan

With a new baby on the way, it's especially important to make your wishes known if something were to happen to you. Who will raise your child? What financial plans are in place for your child's future? There are costs involved in preparing a will as part of estate planning but it is money well spent. You should also take this opportunity to ensure you have adequate insurance coverage in place.