Having a baby is one of the best things you’ll ever do- but there’s no denying that it’s also one of the most expensive. The best advice is to not let the financial side of things put you off growing your family (unless you’re in extreme circumstances) because most people find that they do figure things out as they go and manage to make it work. But it does take some planning and organisation, especially if you’re not working with the biggest budget. Here are some of the things to consider financially when you’re planning on having a baby, and what you can do to make life easier.
Start saving
Having some savings behind you is never going to be a bad thing. Consider setting up two savings accounts- one for your child’s long term/ life savings, and the other an account that you can use to fall back on if they need anything. For example, if they need new clothes, or when you need to upgrade their cot to a bed later on, or if they need a new car seat in the next size up, you can use money from this account. It means you always have a chunk of cash on hand for the important things they might need without it affecting your regular budget. With their long term savings you can put a tiny amount away each week or month and know that it will add up over the years. If anyone gifts your child money for birthdays, Christmases, Christenings etc, it could all be put into this account too. This could be money towards education later on, learning to drive, buying a house or anything that will give them a helping hand in life. Of course, no one ever wants to think about the worst but if anything were to happen and you end up having to look at caskets for children and infants and making funeral plans, then savings mean you have those costs covered too. For the shorter term savings, aim to put away as much as you can, before you conceive and during the pregnancy. That way you have cash on hand right away if you need it from when they’re born.
Get organised with baby stuff
Babies might be small, but they do need a lot of stuff. However, you dont need to be sucked in by marketing and feel like you have to buy every latest and greatest gadget on the market in order to be a good parent. Write a list of essentials, speak to friends and family about what you’re likely to need and what’s just a gimmick and go from there. When you have your list, you can start buying things each week or month. For larger items like the cot, pram, car seat etc you might be lucky enough to have a family member volunteer to get these for you. Other items could also be put onto your baby shower list if you know you have friends and relatives wanting to help out. Don’t be afraid to buy second hand, especially when it comes to things like clothes and toys. Babies outgrow these so quickly that you can often find items that are almost brand new on the second hand market. If you have a good, organised list you’ll know exactly what you have, what you still need and can spread out the cost to make sure you have everything in time for their arrival.
Consider your home and car
One of the biggest expenses you might face if you’re growing your family is the fact that your home or car (or both) might need to be upgraded. If you currently live somewhere unsuitable for raising a baby (like in a top floor apartment with no lift in the building) or your car isn’t right (perhaps it’s a two seat sports car) then these are things that will cost money to change. If you know that you will have to change your living arrangements and sort a new vehicle then do some research into the costs and how you can make this work. It’s not to say you need to have a huge, luxurious family vehicle to be safe on the roads, and not everyone is lucky enough to land a large house with a spacious garden. People make all kinds of arrangements work and have done for centuries, but when it comes to finances and getting organised it’s definitely something to think about.
Think about what you will need
It’s easy to sit making lists and considering what a new baby might need to be happy and comfortable, but think about yourself too. What might you need to buy for you? Maternity clothes, comfortable pyjamas and loungewear and new bras are all likely to be on the list. You might want some pampering products or a foot spa to make you feel fresh and revitalised during a difficult time in your life- pregnancy is hard on the body! You might need to buy a comfortable new chair for your living room so you can sit and feed the baby without any aches and pains. Think about you- what you might want or need to wear, sit, eat and use during the pregnancy and postpartum and be sure to budget for this. You are important too, and when you care for yourself you can better care for your baby.
What tips do you have for someone planning for a baby and hoping to get their finances in order?
