How to Save Money As a New Parent
Come up with a work plan., Start paying down your debt., Consider breast feeding., Get your assets in order., Don’t forget to splurge on something you really want., Question when a product came out., Spend your money wisely., Start your spending...
Step-by-Step Guide
-
Step 1: Come up with a work plan.
Once you learn that you are going to become parents, you should have an important talk with your partner about your job situation.
Determine if one parent will stay at home to raise the baby or if both parents will continue to work.
Many couples have already had this talk before they conceived.
Some couples with lower paying jobs may not have the option of taking time off from work.
Other couples may decide that even though they need both salaries, it may not be worth it for both parents to work because of the high cost of child care.
Determine what your financial needs are and what your best route is for meeting your financial demands. -
Step 2: Start paying down your debt.
It is a good idea to start paying off your debt while you are pregnant so that you are not faced with financial burden and added stress when the baby is born.
It is even better if you can start paying down debt before you conceive.
Pay off student loans, car loans, and credit cards.
Some financial experts recommend first paying off your biggest debt to start chopping away at the high interest of the large loan.
Others believe it is best to pay off your smallest debt first to eliminate one bill entirely.
Determine which method works for you and make the payments.
Put away enough cash equal to three months of living expenses.
Instead of buying a new car for your baby, put that money away for other important things.
Just because you are having a new baby does not necessarily mean you need a bigger car.
As long as you have a backseat big enough for a car seat, you should be fine. , Instead of spending up to $100 a month on baby formula, take advantage of the fact that you can provide free food to your baby.
Some new moms want to purchase nursing gear, but you should be aware that there are places that provide free support to new breast feeding moms, such as The La Leche League.
Many hospitals and birthing centers rent out breast pumps to nursing mothers.
Depending on the type of pump you need and how long you need it, the cost of renting can be as much as half the cost of purchasing your own breast pump. , It is important to make sure your family is taken care of if something should happen to you.
New parents need to prepare for the worst and have a will specifying where they want their assets to go in the event of their death.
They also need to specify who they want taking care of their child in the event something were to happen to both parents.
To be extra safe, new parents may also want to think about taking out life insurance and possibly setting up a trust for their children.
A trust can be important because it specifies what you want to leave your children if something should happen to you before they turn
18.
This can be a tedious process, but the reward in knowing that your family is taken care of is worth it in the end. , Just because you are trying to save money doesn’t mean you shouldn’t treat yourself to that really nice rocking chair you’ve had your eye on, or that prenatal massage you’ve been wanting.
It can be really worth it to do something for yourself and get something you want, so budget for those extras. , There are so many new and unnecessary products out there being marketed to new parents.
It can be tempting to spend money on these products, but most of them are things that babies do not need, like satin crib sheets.
This is why it is important to ask yourself how long these products have been around.
If you lived without prenatal learning systems when you were a baby, chances are your baby can do without it as well. , Just because you are having a new baby doesn’t mean you need a new car or a new house.
You don’t necessarily have to have a bigger house or a bigger car right away.
Children can share a room for a while when they are small.
It can also save a lot of money to buy secondhand toys and clothes.
Children grow out of things so quickly that buying secondhand can make a lot of sense. , During the pregnancy, it can be very tempting to buy all kinds of new baby gear.
However, when the baby is born, parents can find that a lot of the things they bought do not suit their baby.
Just buying the necessary items at first, such as a car seat and a crib, can help save money.
Buy things that fit your baby’s size and temperament after the baby is born. , It is very important to know what policies your workplace has when it comes to maternity or paternity leave.
You don’t want to be surprised that these leaves can come with no pay or a reduction in pay.
This also means checking your health insurance coverage for the pregnancy as well as baby checkups.
It also can’t hurt to take a look at your company’s long term disability plans and life insurance options. , It can be helpful to start a savings account before having a baby to help make the financial transition into parenthood easier.
This way you will have some money to fall back on if you find it hard to adjust to the new costs of an expanded family. , It is important to try to cut your budget in half for a month to see if you can make the financial adjustments necessary to have a child.
Also, if one parent is thinking of quitting work and staying home with the baby, it can be important to try to live on one income before the baby arrives.
This can help you see the extra expenses you will have to cut or change once the baby arrives. , Sometimes you may have to do things you never thought you would once you have a child.
Some single parents have to move back in with their parents for a while when having a new baby.
It can also mean staying in that apartment a little longer if it fits your budget instead of buying that new house you want. -
Step 3: Consider breast feeding.
-
Step 4: Get your assets in order.
-
Step 5: Don’t forget to splurge on something you really want.
-
Step 6: Question when a product came out.
-
Step 7: Spend your money wisely.
-
Step 8: Start your spending after the baby is born.
-
Step 9: Find out what benefits you have.
-
Step 10: Try to live below your means before you begin having kids because then when you do decide to have children
-
Step 11: the extra expenses will not be a financial shock to you.
-
Step 12: Practice budgeting your money in advance.
-
Step 13: Be creative.
Detailed Guide
Once you learn that you are going to become parents, you should have an important talk with your partner about your job situation.
Determine if one parent will stay at home to raise the baby or if both parents will continue to work.
Many couples have already had this talk before they conceived.
Some couples with lower paying jobs may not have the option of taking time off from work.
Other couples may decide that even though they need both salaries, it may not be worth it for both parents to work because of the high cost of child care.
Determine what your financial needs are and what your best route is for meeting your financial demands.
It is a good idea to start paying off your debt while you are pregnant so that you are not faced with financial burden and added stress when the baby is born.
It is even better if you can start paying down debt before you conceive.
Pay off student loans, car loans, and credit cards.
Some financial experts recommend first paying off your biggest debt to start chopping away at the high interest of the large loan.
Others believe it is best to pay off your smallest debt first to eliminate one bill entirely.
Determine which method works for you and make the payments.
Put away enough cash equal to three months of living expenses.
Instead of buying a new car for your baby, put that money away for other important things.
Just because you are having a new baby does not necessarily mean you need a bigger car.
As long as you have a backseat big enough for a car seat, you should be fine. , Instead of spending up to $100 a month on baby formula, take advantage of the fact that you can provide free food to your baby.
Some new moms want to purchase nursing gear, but you should be aware that there are places that provide free support to new breast feeding moms, such as The La Leche League.
Many hospitals and birthing centers rent out breast pumps to nursing mothers.
Depending on the type of pump you need and how long you need it, the cost of renting can be as much as half the cost of purchasing your own breast pump. , It is important to make sure your family is taken care of if something should happen to you.
New parents need to prepare for the worst and have a will specifying where they want their assets to go in the event of their death.
They also need to specify who they want taking care of their child in the event something were to happen to both parents.
To be extra safe, new parents may also want to think about taking out life insurance and possibly setting up a trust for their children.
A trust can be important because it specifies what you want to leave your children if something should happen to you before they turn
18.
This can be a tedious process, but the reward in knowing that your family is taken care of is worth it in the end. , Just because you are trying to save money doesn’t mean you shouldn’t treat yourself to that really nice rocking chair you’ve had your eye on, or that prenatal massage you’ve been wanting.
It can be really worth it to do something for yourself and get something you want, so budget for those extras. , There are so many new and unnecessary products out there being marketed to new parents.
It can be tempting to spend money on these products, but most of them are things that babies do not need, like satin crib sheets.
This is why it is important to ask yourself how long these products have been around.
If you lived without prenatal learning systems when you were a baby, chances are your baby can do without it as well. , Just because you are having a new baby doesn’t mean you need a new car or a new house.
You don’t necessarily have to have a bigger house or a bigger car right away.
Children can share a room for a while when they are small.
It can also save a lot of money to buy secondhand toys and clothes.
Children grow out of things so quickly that buying secondhand can make a lot of sense. , During the pregnancy, it can be very tempting to buy all kinds of new baby gear.
However, when the baby is born, parents can find that a lot of the things they bought do not suit their baby.
Just buying the necessary items at first, such as a car seat and a crib, can help save money.
Buy things that fit your baby’s size and temperament after the baby is born. , It is very important to know what policies your workplace has when it comes to maternity or paternity leave.
You don’t want to be surprised that these leaves can come with no pay or a reduction in pay.
This also means checking your health insurance coverage for the pregnancy as well as baby checkups.
It also can’t hurt to take a look at your company’s long term disability plans and life insurance options. , It can be helpful to start a savings account before having a baby to help make the financial transition into parenthood easier.
This way you will have some money to fall back on if you find it hard to adjust to the new costs of an expanded family. , It is important to try to cut your budget in half for a month to see if you can make the financial adjustments necessary to have a child.
Also, if one parent is thinking of quitting work and staying home with the baby, it can be important to try to live on one income before the baby arrives.
This can help you see the extra expenses you will have to cut or change once the baby arrives. , Sometimes you may have to do things you never thought you would once you have a child.
Some single parents have to move back in with their parents for a while when having a new baby.
It can also mean staying in that apartment a little longer if it fits your budget instead of buying that new house you want.
About the Author
Susan Flores
Enthusiastic about teaching organization techniques through clear, step-by-step guides.
Rate This Guide
How helpful was this guide? Click to rate: