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| Baby Budgeting: Saving for that New Arrival Whilst a new baby may be priceless in terms of love and emotion, to your family budget its arrival certainly comes with a big price tag attached. Having a baby is not cheap, and when the stork delivers your bundle of joy, it also brings with it a wealth of money worries. Nevertheless, with a little careful budgeting and prioritising in advance, there are plenty of ways to make sure you have everything you need for your new baby without breaking the bank. The biggest economic pitfall for parents-to-be is not making a clear differentiation early enough between what is a want and what is a necessity for your child. With a million pound baby products industry marketing everything from all-terrain pushchairs to Dolce and Gabbana baby bibs, it can be easy to succumb to the baby hype and allow your spending to spiral out of control. Every year expectant parents end up spending a fortune on items neither they nor their child need, so avoid making the same mistake by identifying well in advance those items you will need to splurge on. Making a budget plan, even if only a rough one, will help you to distinguish both the essential purchases and how much you will need to allow for your pre-baby preparation. To sift the facts from the advertising frenzy, seek the advice of friends and family on what they found to be indispensable. Undoubtedly, the big spending is going to be on the push chair and the car seat, but it is highly likely that new parents will tell you to forget the soft toys- you will get a mountain in gifts when the little one arrives. Once you know the items that are optional, look for areas where you can economise. For example, you may not need to buy specific baby furniture for your child. A changing tray will suffice in place of a full table, and other fixtures and fittings like dressers and even cribs can be picked up second hand from charity shops or flea markets- you may even find a rare antique bargain. Utilise the help of friends and family in this respect as well, they may have equipment they no longer need or heirlooms that Grandma and Grandpa wish to pass down. Don’t stop here when it comes to accepting donations. Those who have had new babies recently will be more than happy to pass on their children’s outgrown clothes that they no longer need. Similarly, your own body will be changing faster than you or your purse can keep up with, so ask around in advance for any maternity clothes that are going spare to help save you money throughout your varying stages of pregnancy. Unfortunately, preparing for a baby is only the beginning of the process. Once your baby arrives you have to factor in that, along with the expense of childcare and the possibility of your own reduced maternity income, household costs will rise. Setting aside money well in advance when you are both still on full-time wage can help soften the economic impact after you give birth. By putting a proportion of you wage into a savings account with a good rate of interest, such as one of Alliance & Leicester’s competitive savings options, the 2.75% online saver, you can feel more financially secure for when the big day comes. Having a baby certainly equals a mountain of costs, but by avoiding impulse purchases in the toy isle, accepting gifts and donations, and making the most of free help and advice you can help lower the financial blow. With a little creative thinking and conscientious preparation you can ensure that you have all the bases covered when your newest arrival to the family comes. |
