"You can't work overtime constantly because you have a baby at home which you have to take care of," says Barbara Hetzer, co-author of How Can I Ever Afford Children? Money Skills for New and Experienced Parents. "When you have a baby it throws everything off. You don't know if both people will be able to work full-time or full-tilt anymore."

Because household income is likely to dip, if not dive, after the blessed event, that's all the more reason for parents-to-be to clear away card debt. Otherwise, they may end up paying for that pre-child Maui vacation well into Junior's third year.

Couples can prepare for parenthood's financial jolt by learning to live on one salary ahead of time.

Learn to live on one salary
Living on a single salary means making do without exotic vacations, designer clothes or a new living room suite. It means taking a lunch to work twice a week instead of eating out.

"You don't do all the things you want to do and buy all the things you want. You learn to do without," says Marilyn Steinmetz, a certified financial planner in West Hartford, Conn. "You no longer buy for yourself. You buy for the child."

The sooner would-be parents start scaling back their lifestyle, the better.

"Ideally, when they get married, they should figure out finances and figure out debt," Steinmetz says. "If they can live on one salary, use the other one to pay off debt and then sock it away."

Once credit card debt is paid down, the next step is building up an emergency fund. Ideally, every family should be able to get their hands on three to six months' salary, but a $2,000 or $3,000 cushion is better than nothing.

Carry a 'clear' card for emergencies
At the very least, clear off one credit card and reserve it for unexpected and inevitable expenses -- such as flying home from a business trip early when the baby gets sick.

"A credit card is really for emergencies," Hollins says. "Every family should have one."

Avoid racking up lots of new debt by shopping for baby with your head as well as your heart.

"You have to be careful not to get caught up in the frenzy of it all," says Alan Fields, co-author of Baby Bargains. "You might want to take an experienced mom with you shopping. Ask her what's useful, what's helpful, what's not."

When shopping for baby, stick to the basics such as a crib, a stroller, T-shirts, blankets, diapers.

"You don't have to go over the edge for that stuff -- certainly not on a credit card," Hetzer said.

You can make it work
As important as it is to have finances in order and to plan ahead for a child, the greater question may be whether a couple is emotionally prepared to be parents. Are they ready to make the sacrifices that go along with being mom and dad?

"There really is never a great time to have a baby. You can always save more money. You can always be more prepared. You have to pick a time and just do it," Hetzer says. "If you're emotionally ready you can make the finances work.

"People have been having children since the beginning of time. You can afford them. Everybody always does."

-- Updated: Aug. 1, 2003