With the amount of stuff that they need, babies can be very expensive. And while it is a joy to find out that you are expecting, now is the perfect time to sit down with your other half and discuss money so that you are prepared financially for what’s to come: maternity leave can add to your financial pressures and the number of items that you will need to get for baby in their first year is actually pretty frightening.

 

To help you out, follow our top tips for financially preparing for baby:

 

Decide on a budget and stick to it

We understand that it can be difficult to walk through the baby department and not buy anything, believe us, but you need to decide on a budget and stick to it. This is vital to ensure you keep track of your finances and not run away with yourself.  

 

Put savings into a baby fund

If you do manage to save a little each month, spilt what you put away between your future fund and your baby fund. This way you will know exactly how much you have to spend on holidays or a new car and how much you have for baby items and emergencies.  

 

Cut back on luxuries

While weekly dinners out and fancy holidays abroad are only experienced by a lucky few, things like your Friday night takeaway, digital TV or magazine subscriptions are little luxuries that add up. Have a look at what you are paying for that you could really do without and put the money you save aside for baby.  

 

Go second hand

You don’t need to buy everything new, so ask family and friends if they have any baby furniture that they don’t mind you borrowing. This will significantly reduce how much you need to spend on baby – money that can be better put to use.

 

Pay with cash

Avoid using your credit card to make any purchases, unless it is absolutely necessary. By sticking with cash you will avoid being left with more debt to deal with once baby arrives.

 

Think about the future

Now is the perfect time to get your budget sorted for the future. Sit down and have a chat with your significant other about how you are going to work your finances for the future. This includes whether you are going to return to work, childcare, etc. so that you are best prepared.

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