I have a one year old and we’re planning on two additional kids. The most immediate impact was that we started putting aside $200/mo into a 529 college savings plan as soon as we got pregnant. The next change was $36,000/year for day care. It took a year, but we found a reasonable alternate day care that only costs $25,000/year.
Most of the other expenses related to infants were not applicable. We found cribs, clothes, toys, etc… for free in the community, and we use cloth diapers, so minimal added expense there.
Longer term, it is impacted our considerations around early retirement. We could probably retire today, though with some risk. We could retire more comfortably in 4-5 years. But, we aren’t really sure how having a 5 year old, 3 year old, and 1 year old (assuming our plans for new kids pan out) would impact our quality of travel or desire to travel, let alone to be retired. Moreover, we’re thinking that while we could retire, we both like our jobs, and maybe the best thing to do is work until our kids are bound for college, which would happen to be ~62 for me. Doing so would allow us to create the start of real generational wealth. Instead of retiring early with $1M that will last my lifetime and leave very little behind, why not retire later with $10M and leave a legacy for my kids to build upon?