Having a baby can be an exciting time and is a life-changing experience. However, it can also be a worrying time with lots to think about, and having children will impact every area of your life, not least your financial situation. Consider the following points to ensure you don’t let money worries ruin the precious and exciting time in your life.
Understand the income drop
Having a baby will invariably result in a drop in income for most couples. Take time to investigate your eligibility for Statutory Maternity Pay or Maternity Allowance as there are a range of requirements to consider. This will allow you to plan in advance for the shortfall.
Consider purchases carefully
Kitting out the nursery and choosing those cute newborn outfits is incredibly exciting. The expense quickly adds up though and it can be disappointing to see, as your baby grows, many items aren’t used at all or often only for a short time only. Friends or family may be able to lend or donate equipment and second-hand sales often have new or barely used items selling for bargain prices, which can you save hundreds.
Investigate childcare costs
It’s common for parents to understand that they will have to continue working once their baby arrives, but not fully investigate exactly how much it would cost to put the baby with a childminder or into nursery. This can be a real shock as it costs a lot! Fees vary from area to area but they really add up and some couples find wages don’t cover or only just cover childcare costs.
Build up savings
Before the baby arrives is the best time to build up savings, the more you can add at this time, the better. Consider consulting a reputable independent financial advisor Chippenham based firm Chilvester for example, can advise on savings and investments at such an important time.
The main advice for prospective and new parents is to plan, plan, plan! It can never be early to start planning for the event as it is life changing. By thoroughly understanding your financial situation and looking carefully at your income and outgoings both before and after your baby arrives, you can plan and prepare so you are not taken by surprise by the financial impact, and simply enjoy family life