a baby is one of the most rewarding and exciting experiences a family
will face. However they
don’t come cheap, in fact the average parents-to-be could spend up to
£2000 before baby even arrives!
in all those unexpected expenses – not to mention the fact one of you
is on maternity leave – and managing your finances and coping with a
new arrival can seem quite a daunting prospects.
Remember the basics
try and work out what you’ll be spending on your new baby, from the
big things such as prams and cots to the small things such as soft toys
you’re working, make sure you take your maternity pay into
consideration, and if you’re self-employed you may be entitled to
Maternity Allowance. Don't forget that there are some benefits available
to new and expectant mums such as free dental care and free
Start making a savings pot
and get your household budget down by making sure you are paying as
little as possible for basics such as broadband, gas and electricity.
You might want to shop around using comparison websites to do this, or
contact your existing supplier to check you are on the cheapest tariffs.
might also want to switch your bank account so you get a decent rate of
interest if you are in credit, or a better overdraft rate if you are in
Work it all out
your household budget and subtract it from your household income. You
should make two budgets: Your pre-baby budget, which uses your current
income; and your new family budget, which is based on your post-baby
spare cash from your pre-baby budget needs to be put into an accessible
savings account paying a good rate of interest. Or if you have quite a
bit of debt make sure you make that a priority and get that paid off
post-baby budget is a good reminder of what you will be living on when
you become a family, so make sure you claim what you are entitled to,
such as child benefit, and find out if you are also eligible for the
Child Tax Credit.
Fall in love with freebies
can get some really good second hand stuff online. Check out
Freecycle.org to see if other local mums in your area have any baby
clothes, or larger items like cots that they no longer need.
can also go to your local NCT Nearly New Sale where you can pick up
nearly new items such as travel systems for a fraction of the cost.
might also want to put in a word at local charity shops and ask them to
put aside any relevant baby bits when they come in – so you have a
whole bag of baby clothes to choose from the next time you visit.
is a good time to try and stock up on cheap nappies, bedding and
Take a (short) repayment break
try and pay any credit cards off before you go on maternity leave; if
that's not possible you may be able to switch to one that offers you an
same goes for some mortgages. If your mortgage company doesn’t offer
repayment breaks, it may be worth asking anyway. Another option is to
reduce your payments by going interest-only for a few months.
With thanks to
My Family Club