7 money tips for first-time parents
Evolving as a parent is one of the multiple thrilling experiences that one faces in life. If you are planning or have already welcomed a further associate into your family, congratulations! However, the finances do not remain the same.
You need to make a way to adjust the newborn’s expenses to the given income. Yes, raising children can be expensive. It may cost you £250,000-£260,000 to raise your child to the age of 18 years!
Thus, as a new parent, you would like to reduce unnecessary expenses to adjust the other important costs easily. The blog discusses the aspects which may help you navigate the new lifestyle without affecting your finances.
How to prepare financially for the new “baby”?
You need to budget and design finances even before your little one is accepted. The expense of essentials such as nappies, bedding, clothing and feeding equipment can all be high.
You can operate online devices like MoneyHelper’s baby calculator to analyse and define a budget. If you live in Scotland, your baby may be luckier to receive a good source of benefits. Here are some tips which may help you:
Plan for the rainy day
If you have not kept any money aside for your baby’s needs, you may be in danger. It is important to have basic savings left for unplanned expenses. You cannot depend on your guardians or known ones for help. Instead, plan an emergency fund especially for the baby’s care.
It may help you face any such situations, like a sudden doctor visit, without panic. You can save a fixed amount monthly or weekly, depending on your usual expenses. However, don’t forget to factor in the baby’s expenses.
Start saving for your child’s future
You can set up Junior Savings funds and an account dedicated exclusively to your child. It will help you ensure a safe future for your child, from education to health and other lifestyle goals. You can use a calculator or contact an expert. How much would you need, approximately, for a comfortable life for your child?
Accordingly, set up a goal and save monthly within the Junior Savings Fund. However, if you still need more funds to achieve a particular goal for a child, don’t worry.
Check instalment loans, which help you spread the cash requirement in fixed monthly payments. You can prefer the repayment duration according to your finances and monthly payment potential. Paying consistently over a long term may help you boost your credit score, too.
Apply for benefits and support
Yes, having a baby is expensive. However, you may tap into different aspects to ease the financial burden. You can check out the type of benefits and support that you may qualify for. You can check the MoneyHelper.org.uk portal to know the eligibility criteria and application process. For example, if you are pregnant, you are entitled to maternity leave. It is regardless of the industry that you work in. Moreover, the prescriptions and NHS treatments are free for pregnant ladies and for 12 months after the baby’s due date. Children may also get free prescriptions until they turn 16.
Stick to essentials while shopping
Impulse shopping is something that you have been guilty of for a long time. Maybe you saw a pretty dress on display and now want it in your home. It may seem natural to attend to instinctual calls, but it affects your budget and income drastically.
It may be easy to get carried away by such aspects; however, it may harm your savings and budget. Your house may be filled with clutter in no time. Thus, try to stick to the essentials that you absolutely need. Your house will thank you for that.
Don’t overbuy toys
Having a baby does not imply filling your home with expensive toys. Instead, be selective and position them well in the new baby’s room. However, most individuals cannot avoid the instinct of buying more due to the instinct of welcoming the baby in the best way.
However, an interesting thing is that babies like to play more with household things like pans and pots rather than toys initially. So, it would not be ideal to spend a fortune on toys.
Buy second-hand or borrow
Baby products and toys can be expensive. Therefore, you can categorise the aspects that you can borrow and the ones that you must buy afresh. For example, you can go for a new cradle; however, check old toys, which may help you save money. However, you must research aspects when you buy second-hand goods. Check it for the quality before ordering the stuff or paying for that.
One must never compromise on important aspects, however. It is feeding bottles, cradle, clothing, safety and transport. It helps ensure comfort, safety, and hygiene for the newborn baby. Yes, the parents spend around £6000-£11000 in the first year of the baby in the UK. Therefore, if you lost your job or depend on benefits or part-time income, it may prove challenging for you.
Don’t worry, check 10000 pound loans which you may get if you have a part-time income. You cannot rely on just unemployment benefits to repay the dues, and hence may not qualify. The instant cash amount with same-day cash disbursal and payment helps you meet the serious requirements immediately. You can repay the dues in easy instalments according to your affordability. It should not affect your basic expenses.
Buy in bulk
You can always buy some stuff in bulk regarding baby products and hygiene. For example, you can buy nappies in bulk. It is because they come with decent expiry and you may going to need that often. Don’t feel bad if your list looks quite long.
It may help you save a lot of money. Moreover, don’t get carried away because your little bundle of joy will not remain small forever. Therefore, analyse the required stuff and buy accordingly.
Bottom line
These are some of the best tips to save money as a first-time parent. You may be excited for your journey; however, you do need to restrain yourself. Identify and prepare a list of the things that you need for the baby. It may help you enjoy the baby’s first moves without facing financial surprises. Alternatively, if you struggle to meet requirements due to low income, check external finance factors.
