How To Financially Prepare For Baby

We want to keep you as happy and healthy as possible while your baby is growing and once s/he arrives! Of course, money cannot buy you happiness - or health for that matter - but feeling in control of your finances is one way you can help reduce one of life's most common stressors.

Bringing a new baby into the world is a beautiful thing and indescribably rewarding, but there is no denying it comes with increased expenses. The good news is, there are things you can do before baby arrives to help you get ahead of the game when it comes to your budget. We recently spoke with our friends over at PensionBee about how to get yourself financially ready for a baby - so when your little one arrives, you have one less thing to worry about. Check out their top tips below!

There are a lot of things to sort out as you prepare for the arrival of your baby. One important thing to stay on top of is your budget, as it’s about to go through an overhaul! With a little bit of prep, you can get financially ready for your new arrival - so you can spend more time enjoying your new baby, and less time worrying about money.  

5 things to consider when financially preparing for a baby

1. Work out costs ahead of time.

   From daycare to diapers to food and bills, there’s a whole new world of baby care to factor into your budget. Make a big list of all the things you’ll need (or might need!) and then organize these as one-off, regular, or semi-regular items. Think about where you’ll be buying your supplies most often (online, your local supermarket, or a specialist shop?) and jot down some prices. Now is a great time to pick out some options for services like daycare too.

   Once you’ve got your list and estimated prices, you can work this into your budget. This means you’re less likely to be hit with surprise costs once your baby arrives. 

2. Start saving now.

   Once your baby arrives, you’ll be spending most of your time, energy, and focus on them - naturally! By saving early, you can give yourself that precious time without having to worry about your money. A bit of prep now could help to make life with your newborn as streamlined and smooth as possible.

3. Set up a savings account - for your child.

   Opening a savings account for your child is an important part of sorting your finances as a parent. There are lots of different options available, including accounts that lock away your child’s savings until they’re 18. Many children’s savings accounts come with a higher interest rate or tax benefits, so be sure to shop around and see what options work best for your family.

   An account will help get you saving for your child. The money you put away as they grow up could go towards an amazing reward like their education, their first car, or a trip abroad. 

4. Protect your retirement.

   Your child’s future isn’t the only long-term planning you need to be mindful of; your own future matters, too! It’s vital to take care of your retirement especially if you’re planning on taking parental leave after the baby arrives. Start planning early by using a retirement calculator, like PensionBee’s pension calculator, to determine how much you should be saving in order to reach your retirement goal.

   By budgeting in your retirement savings, you’re setting yourself up for a more comfortable and stable future. It’s one less thing to worry about! 

5. Throw a baby shower.

   Above all, take the time to celebrate and enjoy your pregnancy - and what better way to do that than with a baby shower? Baby showers are an ideal opportunity to have some fun with friends and family whilst getting your loved ones involved with your pregnancy and the new baby.

   If your guests bring gifts, this can really help give your child - and you! - a headstart. As with any celebration, gifts are usually optional at baby showers but your loved ones will be keen to help out and celebrate with you. So if you’ve got any specific items on your wish list, or big ticket pieces (such as a crib or baby stroller) that people can chip in towards, there’s no harm in asking. With some planning and preparation, you can set up your budget to accommodate your new family member - and yourself, of course! Being mindful of your finances early can create a solid foundation later, so you can focus on your beautiful new baby instead.

About PensionBee

PensionBee puts you in control of your pension savings by finding and combining your old pensions into a new online pension plan. From fairer fees to a beautiful digital dashboard, they're building a pension service that's fit for today, and for tomorrow. Learn more here. 

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