Being a new parent is an exciting and exhausting time and for many of us saving money is the last thing on our minds. Babies are more expensive than we can predict and in all the chaos and excitement of bringing a new baby home, it’s easy to let your finances go awry. If you want to keep on top of your budget and ensure you can save up for your kid’s future, here are five essential savings tips for new parents that will make sure you can focus on your baby rather than your bank balance.
Borrow as much as possible
From breast pumps to bedding, reach out to your friends and fellow parents to see what you can borrow. A breast pump, for example, can cost hundreds, but you may have friends who still have theirs lying around. It might be tempting to buy everything new, but with so many baby products only being needed for a short period you can save a lot of money by borrowing instead.
Start saving early
With a new baby in the house, the last thing you’re thinking about is saving for their future. Time flies with kids and the earlier you start saving for them the better. When the dust settles and you begin to have a bit more time on your hands, investigate junior ISAs and saving accounts for kids through services like Wealthify so you can get a head start on investing in your child’s future.
Use free and local services
Baby classes can be expensive but they are a great way for babies and their parents to get out and socialise. Before forking out hundreds on a baby music class, look into what your local services might be offering for free. Local libraries often have events and classes for babies and children and are full of toys and books for children that you can make the most out of. Many libraries even offered free virtual storytimes during and since the pandemic and these are a great opportunity to meet new parents too!
Buy in bulk
Lugging almost 300 nappies home from a wholesalers may not be fun, but you can save a lot of money in the long run by buying certain baby supplies in bulk. Other supplies you should consider buying in bulk include baby wipes, baby shampoo and sunscreen, formula, baby food, and non-perishable snacks. Join your local wholesale club so that you can always buy in bulk for all your child’s needs over the years.
Be savvy with clothing
A new baby is exciting and it’s tempting to splurge on a ton of cute outfits for them before they even arrive. But babies grow quickly. If you want to keep an eye on your budget as a new parent, be as savvy as possible about clothing. This means embracing hand-me-downs from family and friends, buying second-hand clothes (thrift shops and consignment stores are full of baby clothes), and don’t bother buying baby shoes – they don’t need them.
Insurance
You must have adequate health insurance, but you should also think about life and disability insurance. The things you want your family to have, such as a paid-off home, school expenses, or even a future wedding for your child, can be covered by life insurance. Life insurance can give your partner and other loved ones peace of mind while protecting your expanding family by ensuring they will have access to financial resources in the event of your passing.
If one or both parents become unable to work due to severe disease or injury, disability insurance can also be a huge help. Even if your work might offer disability insurance, make sure that it will last long enough to pay for necessities like your mortgage, debt, childcare, and home bills.
If you want more specialized coverage for your requirements, you might want to think about utilizing an individual policy either in place of your current coverage or as a complement to it. If you compare policies, keep in mind that some may only pay benefits if you are unable to perform any employment at all, as opposed to being unable to perform the particular type of work you now do.
Make Use of a Budgeting App
You want to give your children everything possible as a parent. There’s no denying that having a baby may result in a little rise in your monthly expenses but creating a detailed budget will enable you to avoid going overboard on strollers and baby accessories.
To know your current monthly expenses, track your spending patterns using an app. Determine your current monthly fixed and variable expenses, to begin with, then set savings and debt repayment targets and monitor your progress. Calculate how much more you’ll be spending each month on baby supplies based on that. To ensure that you have clear financial expectations as your baby grows, make notes on anything that needs to be amended for the following month and so on.
Avoid Hospital Add-ons
Choose not to purchase any add-ons you don’t require to avoid paying any extra fees during your stay. Hospitals may charge for extras like watching TV, but the majority will send you home with newborn items at no extra cost. Stock up on baby wraps, pacifiers, onesies, diapers, wipes, and hospital supplies to avoid making a second trip to the market.
Look for Discounts
Discover new ways to save on your baby’s budget. Aside from requesting the hospital for more supplies, see if your insurance agency would pay your breast pump expense. The vast majority of health insurance providers are required to include this on their list of expenses to cover. Before heading out shopping, check out each store’s website for coupons you’re able to stack on top of sales.
Plan for Both Major and Minor Emergencies
When you have a baby, you should expect an increase in the likelihood of experiencing accidents. Maintain a state of readiness at all times by carrying your baby care kit with you at all times, both in your car and in your diaper bag. Include a few extra snacks, ointment, diapers, wipes, an extra outfit, and t-shirts for both you and the baby in each of the bags.
If you are prepared for any scenario, you won’t have to waste time or money looking for supplies while you’re out and about. Check the contents of the baby bag that is stored in your vehicle to ensure that it contains all of the essential items and that it will be accessible to you when you need it.
Did You Know?
- Being a parent is a lot more challenging than you initially assumed. The majority of parents believe that the most challenging time of parenting is the newborn stage, which typically involves cranky newborns. But wait until your teen starts dating or driving before you worry about them. You will look back with fondness on the days when your most pressing concern was determining whether or not your child got a nap.
- Your children will take on the characteristics of their parents, both good and bad. Your high level of aggravation, your inability to focus, your chronic messiness, and your persistent procrastination will all be mirrored in your children, no matter which of these traits you struggle with the most. Also, it will make you want to cover your face in shame. After experiencing some of these undesirable behaviors firsthand a few times, you will feel the desire to improve yourself as a person.
- When you have one basket full of baby laundry to fold and put away, it will take you four times as long.
- You will soon look forward to watching kids’ shows, whether it be the Disney channel or the Toy Story film. Not so much because they provide excellent entertainment, but more because they are a wonderful way to relax and cuddle with your child.
- The normal response of newborns to being submerged in water is to hold their breath, and they may even move their arms and legs around. You will be able to observe these natural abilities being put to use if you enroll your child in a swimming class. If you intend to take your baby swimming yourself, you should wait until after the six-week checkup before doing so. Otherwise, you can take your baby swimming whenever you wish. If you do decide to go swimming with your baby, you should make sure the child does not become overly chilled. Pick a pool designed specifically for babies that has warm water or give a baby suit in place of traditional swimwear.
Conclusion
It is never an inexpensive endeavor to raise a child. There are, however, a variety of strategies that first-time parents can utilize to cut costs on a variety of costs, including day-to-day expenditures as well as major purchases.