Are you financially prepared for a baby?
One of the most exciting times in a couple’s life is the experience their first child brings them. Although, there is a seemingly endless list of everything that needs to be prepared in await of their arrival. The experience could easily become an overwhelming one which is why research and thorough planning should be done well ahead.
With the average cost of raising a child from birth to the age of 21 stands at an estimated £229,251 (ouch!), it’s clear that money saving should be part of the agenda when a new baby comes along.
Planning ahead is crucial in order to create a financially realistic budget in which you can stick too. With use of the baby cost calculator realistic planning is exactly what you are able to do. This interactive app allows you to visually view the average costs of every expense throughout the first three years of a child’s life, covering pram costs to the expenditure of childcare.
Here are some other tips:
Prepare for childcare costs
Childcare is one of the most expensive elements of raising a children with the average cost of £10,000 a year, yet there are many ways to reduce this.
For example the government have allowed for 15 hours’ worth of free childcare every week for working families with children of the ages 3-4. This scheme already saves families £425 a year and is set to increase to 30 hours a week from 2016, so more money is to be saved.
Saving you even more money you’re able to take part in the ‘salary sacrifice’ scheme in which your employer will deduct a certain amount of money from your wage and give it to you in tax free childcare vouchers instead.
For example, if your employer were to deduct £1,000 from your wage, after tax and national insurance that would only be around £700, but being provided with these vouchers you are able to ‘gain’ £300 as no tax is deducted.
Become a smart shopper
Babies can grow out of clothes incredibly fast which is why it’s so important to grab bargains and save yourself some money.
If you don’t mind the reuse of items take a look on selling sites which often sell second hand bulk baby clothing that are still in great condition.
However if you do prefer to buy things new then make sure you are comparing store deals to online ones, as there is often an online discount (although take into consideration delivery charges).
Become a couponer
Have a look at sales and search your newspapers and magazines for money off vouchers and coupons which could save you money on little but expensive items like nappies.
Save and pass on
If you are planning on having more children in the future, anything you buy this time around could be kept and reused for them, at least that way you know where they’ve been used and how hygienic they are.
Don’t get to woven up in financial stresses and having the latest items for your child because at a young age all they want is you, they don’t care what they are dressed in or whether their bedroom is decorated with fancy wallpaper or not. Save your money until they are older and can actually appreciate it.
Buy the best and resell
I buy good quality things for my kids and then sell them on eBay if they are still in good nick.
What other things can you do to save money on children?