Savings advice for new parents

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The cost of raising a child is at an all-time high and for new parents the financial implications may be particularly daunting.

It is estimated that by the time a child reaches graduation its parents will have spent as much as if they had purchased a house. As a new parent, the best course of action is to be prepared and planning ahead can decrease costs and allow financial freedom as your child grows.

Keep equipment costs down

family 199x300 Savings advice for new parents
Baby equipment can be incredibly expensive and one of the best ways to cut costs and save is to purchase secondhand items. Babies outgrow everything quickly and it is not necessary to purchase expensive newborn paraphernalia if you can obtain it second hand. There is very little that a baby requires new, and secondhand equipment is often massively discounted and barely used.

If you know someone who has recently had a newborn it can be worthwhile asking if you could borrow some of their equipment as their baby outgrows it, especially if they are considering keeping it for another addition later on.

New mothers often bond over babies and by establishing a network of people in similar stages of child rearing you can all club together and save.

Plan ahead for childcare

Once maternity leave has ended and a new mother needs to go back to work, childcare becomes the number one priority. A recent study shows that childcare costs are rising every year by as much as £5 a week and that this figure shows no inclination of decreasing any time soon. Before your child is born conduct some research into the cheapest available daycare options and determine whether an au pair may be a more affordable choice.

Many employers will also agree to flexible working hours so discuss this as an option with your boss well in advance, the savings may be worthwhile. If any family members are willing to look after your child you could drastically reduce costs, or perhaps see if there are other new mothers in the neighbourhood who will club together for a nanny service.

If you do opt for stay-at-home help always ensure they have access to emergency and other useful numbers, such as the BT customer service number.

Budget before the birth

Once your baby is born life can suddenly become incredibly hectic. Lack of sleep can lead to poor decision making when it comes to finances so it is advised that prospective parents have their budget worked out well in advance. If you have a clear financial plan set out for your baby’s first two years you may find it easier to cope, as financial stress will be alleviated.

Always check your bills are in order before the birth and make use of services such as the BT customer service number that assists you with checking your telecommunication, broadband and TV debits are in order. A concise budget and clear financial plan will help you approach any financial emergency calmly, and by understanding expenses upfront you can plan better.

A baby is a wonderful addition to any family and by being financially prepared you can relax and enjoy time with your newborn without added monetary stress or worries.

 

Image courtesy of Stockimages FreeDigitalPhotos.net

Source: http://www.bbc.co.uk/news/education-21668842

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