Having a baby is an exciting time but it can also be an expensive one. So it’s understandable that many people review their finances when they find out they are expecting a baby so they can start planning for their baby’s future.
There are steps you can take before their arrival to help you make you feel more confident about your financial situation.
Review your finances
A good place to start is to look at what money you have coming into your household. We know it might be tricky, but start by talking openly about your finances with your partner so there are no hidden surprises.
We would advise you find out how much maternity or paternity pay you’re entitled to, and work out how a drop in income might affect you. Are there other entitlements you can claim towards the cost of bringing up your family, such as Child Benefit or Universal Credit? Can you boost your income with other money-making ideas such as selling unwanted clothes or possessions?
How do I make a budget?
Working out your budget as early as you can, will be really helpful – so don’t put it off until your baby has arrived. Knowing how much money you have coming in and how much is going out will help you to work out what you can afford, and it might make you feel happier about your financial situation.
Free budget calculators are available online and can help you to keep track of your money. Set a time to regularly update and review your budget so you stay on top of things.
How can I save money on my weekly food shop?
With the cost of food on the rise, the weekly shop can really eat into budgets. Try to plan your meals in advance so that you stock up on the food and ingredients you need and reduce waste – and stick to your list.
It’s worth noting that in many cases, store brands can be the cheaper option, and it’s always worth shopping around to compare products across supermarkets or even your local shops.
A top tip from us is to batch cook. After all, making meals in batches will allow you to put some in the freezer to eat on those days when you don’t feel like cooking.
How can I cut back on my outgoings?
With a new member of your family to clothe and feed and a potential change in your income (depending on your maternity or paternity leave allowance and circumstances), you might need to cut back on the money you spend. You could split your outgoings into essentials and non-essentials.
Can you save money on your utility bills, mortgage, or insurance? You may be able to find a better deal or a better rate when they come up for renewal by using price comparison sites. It’s always worth taking the time to research, especially at the moment and if you’re expecting a baby.
Are there non-essential purchases that you can cut out while you adjust to life with your new arrival? You can make savings over time by reassessing your spending and making some lifestyle changes. That could be cutting out those impulse purchases, eating out less, or cancelling subscriptions that you can do without.
Start saving for baby’s future
Start setting aside some of the money you’ve saved with these tips to build up a nest egg (a specific amount of money saved up for a particular person or purpose). It could help to see you through any drop in income or cushion the blow if you have any unexpected outgoings like the car tyres needing replacing or your boiler breaks.
Are you pregnant? Join The Parents Class and connect with other expectant parents
We’ve listed a number of ways that you can save money when you’re pregnant, but for more insight and practical advice you can trust, while connecting with other parents-to-be, join Our Community for free today.
Of course, if you are pregnant then this is your sign to book your space on The Parents Class. Our midwife-led antenatal classes, each led by registered midwives, are designed for expectant parents who are 18 weeks pregnant and over. Find your nearest class today.