Having children brings joy to people’s lives, but it can be financially challenging. Coping with a rise in your outgoings can be hard at the best of times. But for many people it coincides with a drop in their income while they’re on parental leave. Careful planning can help take the sting out of the situation though, allowing you to spend more time organising your next family outing, and less time worrying about how to pay for nappies.
How to save money when you’re pregnant
In many ways, saving money while you’re pregnant is like saving at any other time. However, one of the benefits of saving during pregnancy is that you have a clear timeline to work with (aside from any early or late arrivals!). Combine that with a strong incentive to meet your goals, and you’ll be able to focus on the more interesting aspects of parenthood instead.
Planning ahead can help you decide what you absolutely need, but just as usefully, what you don’t need. New parents are confronted with an almost endless array of products, so it’s easy to get carried away. But take a step back and you may decide you don’t need as much as you thought. Even essentials like car seats and cots come in a wide range of styles, meaning they’re available at a variety of prices.
The NHS has a handy list of the key items you’ll want to consider saving for while you’re pregnant, including:
- Clothing – newborns grow quickly, so it’s probably only worth investing in the essentials to start with. And if you’re lucky enough to receive gifts from friends and family to celebrate the birth, you’ll probably find you get some lovely clothes.
- Bedding – initially your baby will sleep in a cot, Moses basket or crib, so you’ll need to save for your preferred choice. Whichever option you go for, make sure you have a mattress with a waterproof cover, along with sheets and blankets.
- Transport – you may decide to go for a sling or a baby carrier. You may opt for a pushchair, pram, carrycot on wheels, or a 3-in-1 travel system. Or a combination of the above. Also, if you have a car, you’ll need a car seat if you want to travel with your baby. This includes heading home from hospital, if you give birth there.
You’re bound to want some extras but knowing that you’ve saved for the essentials is a great way to start. Once you’ve done that, you can think about anything additional you might need. And don’t forget, you don’t have to buy everything new. You may be able to buy some things second-hand or borrow them from family or friends. That way you’ll spend less and be kinder to the environment too.
How much to save for maternity leave
The first thing to do is to consider how your income will change when you’re on parental leave. Maternity/paternity pay can vary from company to company, but you’ll be entitled to Statutory Maternity Pay if you meet the criteria. At the time of writing this equates to:
- 90% of your average weekly earnings (before tax) for the first 6 weeks
- £187.18 or 90% of your average weekly earnings (whichever is lower) for the next 33 weeks.
Your employer may offer enhanced maternity pay though, so make sure you’re aware of it if you’re employed. It’s also worth exploring what state benefits you may be eligible for, including child benefit.
In tandem with thinking about how your income will change while you’re on parental leave, it’s worth thinking about how your outgoings might change once your baby arrives. You’ll probably find you spend less on certain things than you do now and more on others.
Taking the time to thoroughly review your outgoings and thinking about where you can make savings, as well as where you might see your spending go up, will help ensure you’re prepared for any eventuality.
Once you know what your income and outgoings are likely to be, you’ll be able to work out how much you need to put aside to make up any shortfall during your parental leave period, as well as for getting set up with the essentials.
Putting money aside monthly while you’re pregnant is probably the easiest way to save what you need, but if you’re committed to having children in the future, the earlier you start saving, the easier it will be.
How to save money with a newborn
Even after you’ve planned your parental leave finances, you’ll probably still be keen to save as much money as possible when your baby is born. The good news is there are plenty of ways to make savings to help make those early days of parenthood more affordable:
- Discounts and offers – try sites like Freecycle or Facebook Marketplace for items in need of a new home. Or check out retailers for offers and loyalty schemes tailored to new parents. Some cinemas offer baby friendly screenings, where your baby can join you for free (and you won’t have to worry about disturbing other attendees).
- Free events – check out sites like Eventbrite and local listings sites for free events in your area. It’s also worth keeping an eye out for free events taking place at venues like libraries and parks. Or just meet up with friends for a walk or a picnic if the weather is nice.
- Bulk buy – but don’t rush into it. While buying in bulk generally works out cheaper than buying the same thing in smaller quantities multiple times, make sure your baby likes something before you do. Having 15 jars of baby food they’re never going to eat isn’t a good buy. But if it does happen, hopefully you can find someone else to give them to.
- Nappies – can be a big expense, both financially and for the environment. Modern reuseable nappies function more like disposables than the old towel and safety pin styles of the past. If you decide to go for disposables though, shop around for the best price and keep an eye out for bulk discounts.
- Branding and gimmicks – your baby isn’t bothered about who makes things, whether it’s their clothes or their car seat. Focusing on whether something does the job you want it to regardless of the brand should help you steer clear of paying more for the label than the product. Likewise, you may find that some products aimed at parents, such as vitamins and toiletries, can be purchased at a cheaper price if you buy a more general product. Think of it in the same way that florists charge more for wedding flowers. They’re the same flowers you can buy at any other time; but they charge more because they know people will pay it.
- Have a clear out – just as many of us realise we’ve moved things to our new house that we don’t need, people often find that even when they think they’ve had a good sort out before their baby arrives, they want to clear more clutter later. Cast a critical eye round your house and you may find there’s more you can sell, donate, recycle or ditch than you thought.
- Healthcare – you’re entitled to free NHS dental treatment if you’re pregnant or have given birth within the last 12 months. So, if you’ve been putting off getting a filling done, why not do it now.
- Claim your benefits – as we mentioned earlier, make sure you claim any benefits you’re entitled to. You don’t want to find out that you were eligible for support when it’s too late.
How much does a newborn cost per month?
Depending on your approach, the cost of raising a newborn can vary quite a bit. The brands you buy and where you shop can make a big difference, as well as the volume of some of the products you use. But for the essentials, excluding childcare, you might be looking at something like this:
- Formula or milk – breastfeeding is the cheapest option, but if you go for formula, expect to pay around £45-£55 per month.
- Baby food – after weaning begins at around 6 months, around £50-£60 per month should cover your baby’s needs.
- Nappies – if you go for reuseable nappies this could be viewed as a one-off expense, but disposable nappies will cost around £45-£50 per month.
- Baby wipes – £20-£25 should be about right.
- Toiletries – things like creams, baby bath products and moisturisers, plus toothpaste when it’s needed, will set you back around £15-£20 per month.
- Clothes – will vary with the seasons and how quickly your baby grows, but around £50 a month, on average, should cover it.
- Toys and books – will also fluctuate over the year, but around £30 per month is a good place to start.
That brings your total to £255-£290 a month, although as we said, take that as a rough guide to get you started. What you spend will vary depending on your needs, preferences and means.
However much you chose to spend, having a budget and sticking to it can help you keep on track financially and stop you buying things you may not need.
