I'm planning a birth centre birth, and leaning towards having DD present. She'll be three and three months when the baby's born. I figure we can start her off with us - DH can bring his laptop with headphones, in case she gets bored, and we can have snacks and so on. I'm doing Hypnobabies, so hopefully I'll be calm - I was fairly restrained last time, even though I didn't feel calm! So I'm not too worried about screaming or anything.
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Anyway, ideally she could chill out in the birthing room, go to sleep in a corner somewhere if she needed to, and wake up/participate in the actual birth part. She's seen plenty of birth videos on YouTube, and is pretty cool with it.
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On the other hand, I'm prepared for the possibility she might either get really bored and start causing a fuss, get upset if she sees me in pain, and/or just disturb my hypnosis and get in the way. In which case, we'd go to Plan B - get my mother to pick her up. It's no more trouble for Mum to come to the birth centre than to our house, so why not? So I don't want to be dogmatic about it either way - we'll just play it by ear and see how she goes in terms of tiredness, boredness, behavior etc.
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I do know of a few families in which the older kids are always present at the birth of the new baby; and they don't seem traumatised at all! I assume they prepared the kids for it pretty well beforehand, though; and these are families that are pretty low-key about life in general, so maybe that's why the kids just took it in stride? I was present at my little sister's birth and it was a great experience, but then, I was much older - 12 - so I guess that doesn't count for your purposes.