Bringing up Baby on a Budget

When thinking about the costs a child brings, most people immediately think of college as the largest and most difficult expense to meet. "New parents or expectant parents should start thinking about college expenses now. The sooner they do, the more time they have for their money to grow for them," says Malovny.

There are several methods to help you start saving for college. "The 529 college savings plan allows the most money to be socked away with significant tax benefits, yet the parents still control the money," says Staton.

Kevin Neal, a certified financial planner with the McDonald-Neal Group in Coral Springs, Florida, recommends using an Educational Savings Account. "The ESA allows for a maximum contribution of $2,000 ... The child has until the age of 30 to use these funds for educational needs. And ... the funds may be used for the educational expenses of K through 12."