Parents spend over £70,000 for childcare and babysitting alone in a child’s lifetime in the UK, with the average out-of-pocket costs of a baby amounting to over £11,500 in the first year. By the same token, the number of mothers working in the UK has risen to 75.1%, edging closer to the 92.6% of male workers with dependent children. If you have just had a baby and you are looking to reduce your expenses while building savings for your child’s later years, the following tips may be of help.
One of the most important steps to take when you are aiming to save money is to know exactly the total cost of baby essentials such as nappies, clothing, and cribs cost. Doing so will enable you to quickly identify if your current income is sufficient and let you know how much extra cash you have to spend on non-essential items.
Money Helper has a useful Baby Costs Calculator, which allows you to start planning from the moment you know your due date. The list includes the costs of your baby’s nursery, bottles, room thermometer, and all other equipment, tools, clothing, and accessories that are considered ‘musts’.
You should also download a budgeting and expenses app like Emma, Money Dashboard, or Moneyhub, to work out your true expenses and to discover what items you may be spending money on unnecessarily.
If necessary, try to make an extra income by embracing freelance work. Popular jobs for parents who are working from home are those of freelance writers, virtual assistants, and online ESL tutors.
Joining Parent-Baby Groups Near You
Joining a parent-baby group in your area will allow you to meet other mums, share information, and share and loan each other baby essentials or sell second-hand items at good prices. You might be surprised to learn how many parents have items such as carriages, cribs, bassinets, and other items they no longer need.
Babies grow quickly, which means their kit of essentials tends to change frequently. Often, items such as cribs and carriages are in perfect condition, and you can save hundreds of pounds by opting to buy them second-hand. The one thing you should avoid buying second-hand is a car seat, as you never know if its structural ability has been compromised.
Choosing Low-Interest Loans
In moments of financial urgency, you may need to resort to financing to cover a specific expense. Personal loans generally have lower interest rates than credit cards or other financing options, and you can pay them back by following a reasonable repayment schedule.
Generally, payday loans have high-interest rates, so they should only be used for true emergencies such as a car repair or other situations that could cost you more money to leave unfixed. It’s always a good idea to consider how you will pay this amount off quickly.
When a new baby arrives, parents can feel a mixture of joy and worry, since raising a child can be expensive. The first step to take is to work out your expenses and figure out how to cover them. In addition to following a budget, you can embrace the joy of saving by accepting and sharing baby items with other parents.
Finally, if you are in a financial squeeze and you need to borrow money, calculate how much you will end up paying if you choose specific options. Only take out high-interest loans if you have an authentic emergency, the amount of cash involved is small and you have options to settle the loan very quickly after borrowed.
Last Updated on June 30, 2023 by Lucy Clarke