Parenthood is exciting and rewarding, but it can stretch your finances. Your pregnancy might have taken you by surprise but don’t let it surprise your bank account. There’s plenty you can do to budget for your new arrival.
Sarah Holt is Head of Partnerships at the mobile money app Monese and Mum of three. Here she offers her best advice on how families can budget for a new arrival, so parents-to-be can enjoy their pregnancy without too many money worries.
Take control of your finances
Use an online baby cost calculator to work out how much money you need to cover your baby’s expenses. This is the family’s savings goal for the next nine months. Sit down, review your outgoings and set a budget so you can meet your savings target.
Use a comparison website to make sure you’re on the best tariffs and deals for all household bills. Go through all of the non-essential direct debits going out of your bank account. What seemed important a few months ago, might be irrelevant to you today. Some subscriptions can appear great value but they might lure you into parting with more cash further down the line. Be honest with yourself and be strict.
Many mobile and banking apps come with automated savings tools. A great way to save is to round-up any small bits of change from your payments into a separate savings pot. This means you can save on the go as you spend. Joint accounts are also a good way for couples to encourage each other to stay on track and save.
Boost your income
Families can save some extra money by taking advantage of cash back sites when making purchases. These sites can give a little back which can go into your savings. Make sure bills are paid by direct debit and are automated as this can be a cheaper way for families to pay for essentials.
It’s also a good idea to have a clear out at home before your new arrival. Sell any unwanted items like electricals, books, CDs and furniture to give your savings pot a boost.
Preloved is re-loved
Charity shops, online marketplaces and local community groups should be a first stop for any parent-to-be. It’s easy to find all the furniture, clothes and toys you need secondhand and at a much lower price. Don’t be shy in asking family and friends for any baby clothes and toys they no longer need. Many families are keen to declutter and part ways with things their children have outgrown. This could be a win for you. It’s kinder to your wallet and good for the environment too.
Stock up on deals
As soon as your savings pot is looking healthy it’s a good idea to use some of it to stock up when you see great deals. Supermarkets run great deals and money off on essentials like nappies, wipes and baby toiletries – strike while the iron is hot. Take advantage of off-season discounts on baby clothes. Just be sure to buy the right size in the right season for your arrival.
Check well-known deals sites and the user forums. Often price comparison information and voucher codes are shared by forum users. However, a word of caution: check out anything that sounds too good to be true and only buy from trusted websites and providers online.
Gen up on what you’re entitled to
Finally, gen-up on what you’re entitled to as a parent-to-be, or new parent. For example, some health services offer free dental to pregnant mums and for some time after the baby arrives. There are plenty of freebies and samples to get from baby clubs. Do some research to find out what you can get your hands on for free or discounted.
