Financially preparing for a new baby
While it is exciting to find out that you’re expecting, having a new baby can be an expensive time. There’s lots of stuff that you’ll need to buy so before the little one arrives, now is probably a good time to sit down with your partner to discuss everything that’s to come from a financial side of things. Maternity leave can often add to financial pressures and the amount of items that you will need to buy your baby in their first year can be a little daunting
To get you started, here are some of our tips for financially preparing for a new baby:
1. Figure out your budget and stick to it
We know that it can be tough to walk around the baby department and resist the urge to buy it all so before you dive in, it’s essential that you decide your budget and stick to it. This will help you keep track of all your finances and will help to manage your spending. Creating an annual household budget is a great way to keep on top of things
2. Start saving now
If you can manage to save something small each month, try to split it into a fund for your future and a new baby fund. That way, you’ll know just how much you have to spend on baby items and how much you have for family holidays or events. With an AIB Online Saver account you can open up to four savings accounts in your sole name. You can also save with flexibility and get hold of your money whenever you (or someone a little smaller) needs it.
3. Cut down on the luxuries
While you probably won’t be splashing out on lots of nights out or holidays abroad, there are also lots of other smaller things like a Friday night takeaway or TV subscriptions that add up which you could potentially cut back on (without becoming a complete hermit). Take a look at what you’re spending and see if there are things that you could do without. Or maybe there are deals that you can take advantage of. Any money you save can be put aside for baby.
4. Think second hand
Not everything you need will need to be purchased new. You will probably have family or friends who have unwanted baby furniture, clothes or items that they can borrow or gift to you. This will save you from splashing out for new items and can really reduce the amount of money you spend on baby.
5. Plan for the future
Now is a great time to sit down with your partner so you are financially prepared for your future. There will be lots more things to think about like childcare, schools or if you or your partner will be returning to work. If you start thinking about these things now it will ease the financial pressure on you later on
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