So, you have just found out you are having your first baby – congratulations! It’s a wonderful time, full of magic and expectation – but also a lot of worries. And one of the biggest concerns for expectant parents is, no doubt, the financial pressures involved with having a baby and providing for your child.
However, there are a few things you can do to ensure your finances are in tip-top condition before your little one arrives. Read on to find out more in our 9-month financial game plan for first-time expectant parents.
Check your credit score
If you have never checked your credit rating before, now is the time to do it. A good credit score gives you options, and any negative ratings can be fixed when you put your mind to it. It’s not necessary to pay off all your debts before you have a baby, but you do need to focus on the ones that are causing you issues. Your credit report will tell you precisely where you need to target your efforts.
Use financial planning software
First of all, take a look around for some financial planning software or apps. Something like YNAB can help you track, plan, and get a tighter grip on your incomings and outgoings. You have to bear in mind that as soon as you have a baby, money will be an enormous issue for you – it can cost up to £250,000 to raise a child to the age of 18! The way you spend money has to change and using a planning app, or program can help point you in the right direction.
Investigate loan possibilities
As Enness Bridging Finance points out, there are many occasions when you might need a loan to cover you when unusual circumstance hits your household finances. Something might go wrong with your home, for example, or perhaps your first scan reveals you aren’t having one baby – you’re having triplets! So, keep yourself abreast of developments in the lending industry, and you will always be able to choose the right loan at the best interest rate for your needs.
Set up an emergency fund
While looking at your borrowing possibilities is important, you shouldn’t rely on lenders to bail you out for everything. It’s advisable to start putting some money away into an emergency fund that will give you a buffer for those occasions when your car breaks down, for example, or your boiler stops working. Look at your insurance policies, too, and ensure they give you the correct levels of cover that you will need.
Set up a baby fund
Having a baby is expensive. You’ll need to buy everything from a Moses basket and car seats to prams and toys. It’s possible to save a little cash by looking at the secondhand markets, of course, but it is still going to be a hefty amount of money to hand over. But, you have nine months to put a little away after every pay cheque – and doing so will reduce the impact by a significant margin.
Good luck with the financial plan – and we wish you all the best for your pregnancy!