Finances are important at all times, but for future parents? Then it’s even more vital. While it’s the love and joy that a baby will bring to your life that’ll be the top consideration, making sure your finances are in check ahead of time can go a long way to both supporting your pregnancy and making things easier to manage once your little boy and girl eventually arrive.
As such, it’s recommended to begin getting your finances in check at the earliest opportunity. In doing so, you’ll be able to focus entirely on your pregnancy and all that comes with it, secure in the knowledge that your underlying finances have been taken care of. In this post, we’ll run through a few smart financial tips that should make all components of your pregnancy journey easier to manage.
Start Building a Baby Fund
You don’t need us to tell you that having a baby can be expensive. One study found that the average parents spend around £12,400 in the first year of their baby’s life. By the time they’re 18, the cost will be roughly £165,872.
So yes, it’s a lot of money — and even though you can calculate how much you’ll spend on day-to-day supplies, it’s also likely that there’ll be unexpected costs that you need to manage, too. Building a baby fund as soon as you first think about having children is an effective way to give yourself a buffer against those costs. Even putting away small amounts of cash each month can go a long way towards offering peace of mind that you have some breathing room.
Calculate Pregnancy-Related Costs
You’ll need to spend a fair amount of money before your baby even arrives, and in some cases, even before you get pregnant. Having a solid understanding of these costs will allow you to budget correctly and keep costs under control. Expectant parents spend around £1000 – £2500 on maternity clothes, creating a nursery, and other baby supplies before the baby arrives. If you’re struggling to conceive, then you may also need to factor in the cost of IVF treatment, though keep in mind that affordable IVF treatment is available. Optional extras, such as having a pregnancy photoshoot or hosting a baby shower, will also need to be accounted for.
Pay Off Debt Ahead of Time
If you’re carrying debt, then it’s recommended to pay it off — or at least get close to paying it off — before getting pregnant. If that’s not possible, then getting a firm grip on your debt, such as by consolidating multiple debts into one manageable monthly payment, can be a good approach. While it’s tempting to overlook debt, getting it under control or eliminating it entirely can be a massive stress reducer further down the line, since it will help free up cash, improve your credit score, and simply give you one less thing to worry about.
Figure Out Your Parental Leave
If you’re currently employed, then now’s the time to check your employer’s parental leave procedures. Some companies allow for more paid time off than others. Knowing what you’ll be entitled to (including paid and non-paid time off) will allow you to budget more effectively.
Earn Additional Money Ahead of Time
Your life will be pretty full-on once you become a parent, so it’s best to make the most of the opportunity that this period of tranquility presents and look for ways to earn additional money. Taking on an extra part-time job can do wonders for helping to improve your financial standing. Another option could be to rent out any spare rooms that you have in your home. That alone could help contribute hundreds of pounds to your baby fund each month without having too much of an impact.
Think Long-Term
It’s normal for future plans to devote all of their finances, energy, and focus on the baby that they will soon welcome into their lives. With that said, it’s also important to keep the bigger picture in mind. Your long-term ambitions might seem far away at the moment, but they’ll arrive sooner than you might think — and when they do, you’ll be thankful that you continued to contribute to your primary savings account.
Don’t Be Overwhelmed!
Finally, stay calm! Looking at baby-related numbers can be a little overwhelming, but remember that there’s more to being a parent than money. Everyone figures out in one way or another, so while it’s important to budget well, keep the bigger picture in mind.
