Having a baby is very exciting, but it also puts new pressures on your money. Check out our handy tips to help you plan ahead and budget for your new baby.
Before your baby arrives, there are a number of once-off purchases you will have to consider, such as a cot or car seat. There will also be ongoing costs when the baby is born, such as nappies and baby care products. To help you prepare for this, we have some tips for you to follow.
1. Reviewing your finances is a good starting point when planning for your new arrival. You should include all your income and outgoings no matter how big or small, in order to get a realistic idea of your financial situation. This will help you work out how much money you can afford to spend before and after your baby arrives.
2. Add up all your income. You may have to plan for a change in household income depending on your maternity leave entitlements and work situation, but on the other hand, you should also take into account the impact that being off work will have on your travel costs and other expenses.
3. If you are taking maternity or paternity leave, check with your employer to see what you are entitled to. If you are not sure what State benefits you may be entitled to, check with the Department of Social Protection here. Make sure to include any entitlements in your new budget.
4. You can use the baby budget planner on consumerhelp.ie to help you work out everything you will need to buy before your baby arrives. Try to spread the costs over the nine months so you’re not trying to pay for everything at the last minute. If you feel that your budget is tight, have a think about making changes to your spending. Cutting out some non-essential items like take-out coffees and lunches can make a big difference.
5. While saving might not be as easy with a new baby, it is a good idea to build up an emergency fund to cope with unexpected expenses. Saving even a small amount every week can really help set you and your family up for the future. You should also consider trying to pay off as much debt as you can before your baby is born, such as overdrafts and credit cards, so that you are in a better position for the big arrival.
6. You may want to buy the newest and best of everything for your new baby, but before you rush into buying, consider which items are worth paying more for and which you can get more cheaply. If you’re buying a few things at once from one shop, don’t be afraid to ask the salesperson if they can offer you a good deal, especially for the more expensive items. Keep an eye out for bargains in the sales, or you could ask friends and family for any equipment or baby clothes that they might not need anymore.
7. When you are a parent, you need to provide for your family not only now, but also into the future. None of us want to think that anything bad will happen to us, but it’s a good idea to make sure you have enough insurance in place to protect your dependents.
8. It’s never too early to start planning for your child’s future. If you start planning ahead now for large future expenses such as school and college fees, it can really help ease the financial pressure on you later on. The baby steps booklet on consumerhelp.ie gives lots of information to help you plan for the years ahead.
Clodagh Coffey is Head of Consumer and Digital Communications with the Competition and Consumer Protection Commission (CCPC).
The CCPC is responsible for enforcing competition and consumer protection laws across the economy. To help consumers make informed decisions it also gives independent, unbiased information about consumer rights and personal finance products and service through its consumer helpline 1890 432 432 and consumer website consumerhelp.ie.
