The Money Pit

Nothing gives you a financial wake-up call like the arrival of a new baby. There's all the stuff you need to buy just to keep her fed, clothed, diapered, and entertained. And, of course, all that gear takes up space, so soon you may find yourself paging through the real estate ads, wondering if you can afford a new home. Later on there will be braces, summer camp, and piano lessons. And a few years after that, the wonderful day will arrive when your brilliant child opens the mail and says, "Mom, Dad, I got into college! Here's the bill."

But instead of worrying about how far you can stretch your paycheck before it snaps in half, think of this as the perfect time to reassess how you and your partner save and spend, and how you can create new habits that will keep your family financially healthy all the way from Gerber to graduation. "Now is a very good time for you and your husband to sit down and have a financial first date," says Bambi Holzer, a family financial consultant and the author of Financial Bliss (American Management Association). "Figure out what your priorities are, whether you want to save for a house this year or go on a family vacation. Get it out in the open now, because you don't want to have stress in your marriage about money when you're caring for a new baby."

We asked the experts to address the top budgeting concerns of new parents. Here's their best advice.