Having a baby is an amazing and life-changing experience. The good news is that with a bit of planning, you can prepare for a baby financially. This article covers some of the main things to consider so you feel ready when the time comes.
Things to do before your baby arrives
As soon as your baby arrives you’re going to be battling with tiredness and a huge life change. You want to be fully focused on your new family, so try and get as much planning out of the way whilst you still have the time and energy.
We’ve listed some of the main areas to consider in the sections below.
Prepare maternity and paternity plans before your baby is born
Plan your maternity leave in advance. Check with your employer to see what you’re entitled to and find out how much you’ll be paid. The government’s Statutory Maternity Pay (SMP) is the minimum, but some employers offer more.
Plan time off for antenatal appointments
Your employer should let you attend appointments and still pay your normal rate. Read the government advice on pregnancy rights.
Get extra help with baby costs
Pregnant mums and new parents get help with some NHS costs. You can get free prescriptions and NHS dental care while pregnant and for a year after the baby is born. Make sure you get your Maternity Exemption Certificate from your GP or midwife. Additionally, there are further means of help if you’re eligible. You may be entitled to Healthy Start vouchers or a Sure Start Maternity Grant.
Understand government benefits and tax credits
Your entitlement to certain benefits and tax credits changes when you prepare for a baby. You may discover that you can get assistance you haven’t had before. Check what you may be entitled to.
Set your baby budget
We’ve all heard that babies are expensive, but that doesn’t mean they need to cost the earth. Before you go on a big shopping spree for cute outfits and new gear, sit down and work out a simple budget with our free baby budget planner.
Sign up for new baby freebies
Lots of companies are keen to get your loyalty and in a bid for this will provide you with freebies. Clubs like Bounty offer support and guidance throughout pregnancy and parenthood. If you have a favourite parenting brand, then check out if they too have a loyalty scheme. Just remember to spend within your budget and only buy what you need.
Consider more than their first year
It’s never too early to start saving for your child’s future. A Junior ISA (Individual Savings Account) can be a great way to do this. The money belongs to your child, but they can only access it when they turn 18. This is a tax-free way to help fund university or build a deposit for their future home.
Plan for unexpected costs or events
Over the course of an entire childhood there may be times impacted by unemployment, redundancy, health problems or bereavement. These situations may be easier to handle with policies such as life insurance or income protection.
Get your family finances in order
Check your credit card and loan agreements to make sure you’re not paying too much interest. You can also shop around for better deals on your gas, electricity, and mobile phone bills. Getting free debt advice is an option if you need it.
And finally, enjoy yourself. If you prepare for your baby in advance, you’ll have more time to focus on what’s ahead. Good luck on your adventure!
