Finances are important at all times, but for future parents? Then itโs even more vital. While itโs the love and joy that a baby will bring to your life thatโll 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, itโs recommended to begin getting your finances in check at the earliest opportunity. In doing so, youโll 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, weโll run through a few smart financial tips that should make all components of your pregnancy journey easier to manage.ย
Start Building a Baby Fundย
You donโt need us to tell you that having a baby can be expensive. One study found that the average parents spend around ยฃ12,400 in the first year of their babyโs life. By the time theyโre 18, the cost will be roughly ยฃ165,872.ย
So yes, itโs a lot of money โ and even though you can calculate how much youโll spend on day-to-day supplies, itโs also likely that thereโll 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.ย
Calculate Pregnancy-Related Costs
Youโll 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 ยฃ1000 โ ยฃ2500 on maternity clothes, creating a nursery, and other baby supplies before the baby arrives. If youโre 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.ย
Pay Off Debt Ahead of Time
If youโre carrying debt, then itโs recommended to pay it off โ or at least get close to paying it off โ before getting pregnant. If thatโs 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 itโs 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.ย
Figure Out Your Parental Leave
If youโre currently employed, then nowโs the time to check your employerโs parental leave procedures. Some companies allow for more paid time off than others. Knowing what youโll be entitled to (including paid and non-paid time off) will allow you to budget more effectively.ย
Earn Additional Money Ahead of Timeย
Your life will be pretty full-on once you become a parent, so itโs 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-Termย
Itโs 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, itโs also important to keep the bigger picture in mind. Your long-term ambitions might seem far away at the moment, but theyโll arrive sooner than you might think โ and when they do, youโll be thankful that you continued to contribute to your primary savings account.ย
Donโt Be Overwhelmed!
Finally, stay calm! Looking at baby-related numbers can be a little overwhelming, but remember that thereโs more to being a parent than money. Everyone figures out in one way or another, so while itโs important to budget well, keep the bigger picture in mind.
