If having a baby is in your plans, it’s smart to start saving as soon as possible

There’s so much to consider when planning an addition to the family – and discussing finances should be at the top of the list with your partner. The best financial planning for having a baby should include a cash flow that can handle additional expenses without leaving you in debt. Starting a baby budget well in advance of your little one’s arrival can go a long way in easing the financial stress after birth.

Amongst other factors that you need to consider for the arrival of your baby, is deciding where you want to deliver your baby, whether in a government hospital, birthing centre, or private hospital. All in all, saving for a new baby should kick into gear as soon as you decide to expand your family.


Quick Read:

  • Include an emergency cash flow in your budget for those moments when additional expenses come up (and they will).
  • Costs begin before birth and accelerate quickly after. The earlier you adjust your budget, the easier the transition will be.
  • Keep in mind that the real financial pressure comes from ongoing costs that repeat weekly or monthly.

Smart saving

  • The value of creating a reserve fund ensures you have help for the big purchases and necessary buffers during maternity leave. Set up a separate savings account that gives you the best interest and flexibility. Plan for expenses if you need to take unpaid leave.

Think ahead… far ahead

  • It’s never too early to consider future costs, like your child’s education. Determine how much you will put aside each month for your child’s future expenses, ideally from preschool to university.

Work out a family budget

  • Go over your recent bank statements and assess how much money is coming in and going out. Pinpoint your essential costs like bond/rent payments, food, utilities, transport costs, and baby essentials. Don’t forget to account for the convenience items, like takeaways during exhausting weeks, and quick pharmacy runs. These all add up significantly over time. Look for gaps where you could cut back on the expenses.

Make rewards work for you

  • Join rewards clubs for discounts, you’ll be amazed at just how much you can save! Before buying something in a shop or online, do a quick search for in-store offers or promo codes. Once you’re well into your pregnancy, shop during big sales and pick up those big items like a baby crib and carrier.

 

Baby expenses

Focus on the essentials

  • Resist all temptation to buy every single cute item you see. Jot down a list of essential products your baby will need on a month-to-month basis. Do thorough research to avoid overspending and panic buying. To this point, sleep deprivation and time pressure can affect decision-making. You’re more likely to prioritise convenience over cost, whether that’s paying for delivery, buying pre-prepared items, or choosing faster (but more expensive) solutions. Instead of aiming for a perfect budget, build a flexible one that accounts for this reality.

Stock up on nappies

  • There are a few ways to save when buying nappies and toiletries. Non-branded items are often cheaper and aren’t all that different in quality to name brands. Not everything has to be branded. You can compromise on a few products, especially the ones that run out quickly, like baby wipes and petroleum jelly. Certain products like skincare are specifically marketed to pregnant women only, but that doesn’t mean standard or alternative versions won’t do the job either. Still, be mindful and always speak to a doctor when in doubt.

Accept gifts

  • Family and friends are often more than willing to bring gifts for your newborn, so it’s okay to let them know what would be useful for your baby. Some may offer home-cooked meals; say yes! New parents need all the help they can get. Some baby products don’t wear out very quickly and aren’t used for long, like drawers, cots, walking rings etc. Check in with family and friends, for secondhand items. You may even find an almost-new crib or baby seat.

Images: Freepik