Welcoming a new baby into the world is a joyful experience and the start of your family life together. However, there are also a lot of new experiences to get to grips with, from feeding and sleep routines to paying for clothing, toys and childcare. This can mean significant extra expenses for you, so it is wise to get your finances in good order from the start.
Here are some tips to help you keep on top of your outgoings and make sure that you can plan for the future with confidence.
Draw up a baby shower wish list
If you are having a baby shower, this is a great opportunity to draw up a list of essential items that you need, plus a few non-essentials that will make life easier and help you to enjoy your parenting role all the more. This avoids duplication, and you can also specify the size or gender of clothes you need to avoid waste.
Even if you are not having a specific celebration, no doubt friends, family and wellwishers will want to bring small gifts, so don’t hesitate to mention anything you need, or would like to have! For example, a popular baby shower gift is an amber teething necklace. These are not decorative items, despite the natural beauty of amber.
Raw Baltic amber contains a natural analgesic that is released and absorbed into the bloodstream, and some parents find that this is effective in soothing a fretful baby during teething, or other minor ailments such as colic. The necklace should never be used as a toy, and the baby should be supervised at all times while they are wearing it.
Get your personal finances in order
Make sure you are claiming all the maternity benefits you are entitled to; this will vary depending on what country you are in and who your employer is. In the UK, Statutory Maternity Pay (SMP) is paid for up to 39 weeks, and you will also be entitled to claim universal child benefit for your first two children.
Shop for second hand goods
Babies grow quickly, and there’s a plethora of cheaply available second hand baby gear out there, such as clothes, pushchairs, prams and toys that have only been used for a few months or even weeks. Scour your local charity shops or hunt online for bargains; this will also give you an outlet to sell your own stuff when your baby is older.
It’s possible to pick up good quality items for a fraction of the original price, but take care when buying items such as prams and cots that they meet the relevant safety standards.
Check them carefully for signs of damage and wear and tear. Be extra careful about buying second hand baby car seats, because you don’t know the history of the item or if it has suffered any impacts that could reduce its effectiveness. However, if trusted family members or friends offer you hand-me-downs, do not hesitate to accept!
Draw up a realistic budget
Before your baby arrives, go through your finances so that you know exactly what the household income and outgoings are, and any savings that you have. This will help to curb any impulse buys and stop you splurging on non-essentials that may be underused and represent poor value for money.
Estimate your monthly expenses on nappies, food, and clothing, and childcare (if needed). Also factor in one-time purchases such as nursery furniture, a high chair, a car seat, a pram, and so on. Allocate a proportion of your income and savings so you know how these items will be paid for, and consider using an app to track your spending.
Think about protecting your or your partner’s income with life insurance to provide some future security for your family should the worst happen.
Look for retailer deals and discounts
Large retailers are keen to get new parents on board in the hope that they become lifetime customers, and they will often have good deals available. Look out for promotions and offers on everyday items such as baby food, clothes, wipes, toiletries and nappies.
Consider buying reusable nappies, which cost more initially, but in the long run will work out cheaper.
