Money Matters: 5 Things Every New Parent Needs to Know About Budgeting
If you’ve recently become a parent, congratulations! Alongside seeing your little one smile for the first time, rolling over, crawling and their first steps are up there with some of the most exciting milestones they will reach in their early lives. What isn’t quite so fun or exciting about parenthood, though, is the fact that you’ll now have a lot less disposable income at your fingertips. They may be small, but they certainly cost a lot. So, in the latest of our Money Matters articles here on the site, we’re focusing on budgeting for new parents – more specifically, the five key things every first-time Mum or Dad needs to know about making their money go further. Read on…
1. They’ll Grow Out of Clothes As Soon as You Leave the Shop
Just stocked up on the next size up for your little one? They’ve probably outgrown their new threads before you’ve even left the shop. While we’re only jesting, of course, babies and kids do grow out of clothes ridiculously quickly, which is why your money is better spent somewhere other than the high street or costly online boutiques.
Babies may be small, but often, the price tags for their clothing are anything but. So head straight to apps like Vinted, Shpock and Depop, where you’ll find lots of new and nearly-new baby clothes and items for a fraction of the prices you’ll find elsewhere. After all, babies grow out of things so fast that new parents rarely have the chance to ensure their little ones wear everything they own before it no longer fits.
Many users of apps like Vinted will sell babies’ and kids’ clothes in bundles, so shop by size and snag a bargain or two. Look for neutral shades, too. That way, if you decide to add to your family in the future, you can use the clothes again.
2. Babies Don’t Care Which Brands You Use
Sure, you could buy the household-name brands of baby wipes, shampoo and talc, but guess what…babies don’t know which toiletries you’re using – and they don’t care either. Unless your little one has an allergy to a certain brand, supermarket brands are the way to go for essentials like wipes and nappies.
In fact, Aldi’s Mamia nappies and Lidl’s Lupilu range fared particularly well in this consumer test by the Which? team, while the Aldi brand was also praised highly by Netmums’ site users.
3. Tax-free Childcare Will Save You a Fortune
When it comes to budgeting for new parents, you can save a pretty penny on everything from nappies to baby wipes and even baby food (don’t forget to head to the Ella’s Kitchen site to sign up for your free weaning pack, which comes with an abundance of money-off coupons).
One of the biggest expenses when you’re a parent is undoubtedly childcare. Did you know, though, that you might be able to benefit from tax-free childcare via the Government scheme that pays working parents a 25% top-up based on what they pay for childcare – head to Gov.uk for more details.
4. You Can Pick Up Nappies and Baby Care Products for Free
We’ve talked about discounted baby items, but were you aware you can pick up lots of baby care items for free – and for yourself specifically, even benefits like dental care and prescriptions? While you’re pregnant and for a year after your baby is born, you may well be entitled to NHS dental care and prescriptions.
New parents can also get their hands on several freebies – keep an eye on websites like Latest Free Stuff, and if you’re currently pregnant, don’t forget to ask your midwife about the free samples provided by Emma’s Diary, which will ensure your budget stretches that little bit further.
5. Don’t Be Afraid to Tell People What You Need
As new parents, you will likely be inundated with gorgeous baby gifts from the moment you announce you are expecting. While you will be grateful for anything you receive, you’re likely to receive more stuff than you know what to do with, including lots of duplicate items. It’s kind of like getting married and not having a gift list; you’re bound to get more than one of something.
While you may not feel comfortable to simply tell people what to buy, if family members come out and ask you what you need, there’s your chance to be honest. By doing so, you’re saving your family and friends money while also ensuring everything you receive is useful.
With Christmas around the corner, many relatives will ask you what your little one needs. If you’re fully stocked up on clothes and/or toys, don’t be afraid to suggest a voucher, allowing you to buy what you need when you need it. It also makes gift-buying much easier for your relatives.
Considering setting up a savings account for your son or daughter? Take a look at our financial products here on the site, including our Children’s Savings Plan – a 10-year with-profits tax-free plan which will prove a lump sum payment for your child (or grandchild). Don’t forget to get in touch with our team with any questions you have, and to learn more about the products and their terms and conditions.
Until next time…
