How To Budget With A BabyFeb 19, 2021
Welcoming a baby is an amazing and wonderful experience in many good and sometimes unexpected ways. With so much to shell out on the new nursery, baby clothes, insurance, and impromptu buys, it’s easy to wonder how to get your finances in order, especially with a baby in the mix.
The truth is it’s not cheap to raise a baby, in fact, the Child Poverty Action Group says to raise a child from zero years to the age of 18 costs at least £185,000 for single parents and £151,000 for couples.
Thankfully, with a budgeting plan that will help you track where your money is going and save for future expenses, you’ll be better prepared to cover every bit of requirement for your tiny bundle of joy.
In this post, we will take a look at five budget hacks for new mums to help you become financially savvy after the baby arrives.
1. Plan Out Your Money
Now that your baby is here, it’s time to start working on your spending patterns.
Determine the things that you spend money on, and begin to journal them in a spending diary over a four-week period. Also, take a look at a few month’s worth of bank statements and make a note of your direct debits and standing orders.
Also include things such as mortgage, rent, household bills, and all other expenses such as travel to and from work, lunch, snacks, and magazines.
It might surprise you how they all add up. Collect all the relevant figures so you can get an overview of your finances to help you plan for months down the road.
2. Apply For Benefits You’re Entitled To
As a new parent, you have a variety of support programs available to you, so take advantage of these to ease the strain on your budget.
Some government benefits offer payments that help with having a child.
You are entitled to free NHS dental care, free prescriptions, child benefit, and health start vouchers while pregnant and up to a year after you have your child. Be sure to ask your GP what you are entitled to.
3. Get Insurance to Cover your Baby
If you have taken an insurance policy, it should provide financial support in pregnancy, labour and after childbirth. But you can also include your new baby in your policy, like your serious illness policy.
With most health companies, parents get up to 30 days after delivery to add their newborn.
Contact your carrier or human resource to find out more. To be better prepared, you can get the enrollment form and start filling it out now. Include your baby’s name and birth date and send the paperwork to HR as soon as possible.
4. Anticipate Changing Expenses
Budgeting allows you to prepare for changing expenses of items. The cost of diapers, formulas, and daycare will fall off your budget as your child grows, and other expenses such as lessons and auto insurance will take over. You can reduce cost by:
- Comparing the cost of adding a child to working parents’ health insurance plans
- Buying second hand
- Shopping around for cheaper child care
- Requesting must-haves at your baby’s shower
Also, always review your monthly expenses whenever you pay your bills, and find space in your budget as best as you can so you are not surprised by what happens.
5. Prepare For When There Won’t Be Enough
Sometimes, the money just isn’t enough. Two basic strategies for balancing your new budget is cutting expenses and increasing household income, but this is easier said than done. Here are some options that you can look at:
- Request a raise or seek a job that pays more
- Downgrade or sell your car
- Refinance your mortgage to reduce debts or lower your interest rate
- Do a garage sale on eBay, Craigslist or Facebook Marketplace
- Start a side hustle like freelancing or working from home jobs
- Stop all monthly subscriptions that you can do without like streaming services or unused gym memberships.
And It’s a Wrap
It’s all well and good to have a budget for your baby, but you have to ensure you are sticking to it. Ensure you create a realistic budget so you can track all of your money as you look after your baby.
To make the dreams of your baby and your family a reality, simply build them into a budget and get committed to saving more today.
There is always help on the way if you don’t know what to do. Click on this offer to get support with building a realistic budget that will set your family up for financial success.