Is it time to start a family? Having a baby is a thrilling experience for a couple. Even though it’s easy to get carried away by all the excitement, you must not neglect the expenses and responsibilities that come with bringing a new little delight into the world.
We want to make sure that starting a family is a wonderful experience for you. Here are a few financial tips to consider before having a baby:
- Create a budget with your spouse
The key to a happy marriage is communication, especially when it come to finances. Create a household budget with your spouse that includes all the expenses that come with having a baby. A baby usually means less disposable income, which means more financial cutbacks.The best way to breakdown the costs of having a baby is to determine your once-off costs and recurring costs. Once-off costs include a pram, a car seat, a cot, etc. Recurring costs include nappies, medicine, baby food, etc. Once you have an idea of how much a baby will cost, you can work out your household budget.
- Spend money on things that matter
Many parents-to-be get so excited that they go on huge shopping sprees before their baby is even born. You’ll be surprised at how many hand-me-downs and gifts you’ll receive for your baby – baby clothes and toys are going to be the least of your financial worries. Rather spend your money on things that matter, like bottles, nappies, baby soap, etc.
- Don’t reject hand me downs
Remember, babies grow up very fast. So, while it makes sense to buy some brand new things, clothes and toys can be handed down from friends and family.
- Buy nappies in bulk
Your baby will go through about 10 to 12 diapers per day for the first few months. If you’re using disposables, buying in bulk is a lot cheaper than buying-as-you-go. Once you find a nappy brand you like, stock up. Buying nappies in bulk will save you a lot of time and money.
- Don’t just buy branded baby food
Baby formula and baby food jars are very expensive. If possible, nurse your baby. Breastfed babies, on average, have fewer health problems than formula-fed babies because breast milk contains antibodies that strengthen their immune systems. Once your baby is ready for solid food, invest in a small food processor that you can use to make your own baby food with using fresh fruits and vegetables.
- Make sure your medical costs are covered
Medical cover is absolutely essential for pregnant women. You need to have the best medical care throughout your pregnancy and during the birth of your baby. You may also want to take out gap cover on your medical plan to prevent any surprise medical costs as hospitals and specialists can charge more than what your medical aid is willing to cover.Once your baby is born, you will need to upgrade your medical plan to cover your new family member.
- Pay off as much debt as possible before the baby arrives
Even before your baby comes along, your expenses will accumulate, making it more difficult to pay off debt. Clear as much debt as possible and avoid getting any other credit. If you’re in too much debt, give Debt Rescue a call today.