Another mouth to feed – budgeting for a new arrival

feeding another mouth

Whether you’re expecting your first child or expanding your family with another baby (or two), planning your finances will be somewhere in your mind. Spend a bit of time now budgeting for the new arrival and you can focus on enjoying the pregnancy and new baby.

Taking maternity or paternity leave allows you to have some time with baby after he or she is born, and from April 2015 a new, more flexible system of parental leave will allow you to switch time off between mum and dad. Which means, if the mother of the child earns the higher wage, it may make financial sense for her to return to work earlier and the father to take longer parental leave and prioritise the childcare. The Money Advice Service offers comprehensive advice on the new system of shared parental leave, as well as a range of financial planning help for coping with a growing family.

Any change in lifestyle will require re-planning your budget, and there are few changes more profound than having a baby. Online budget planners can help you plot out your essential expenses and those that are luxuries. The planners will also help you see how those little costs –a coffee on the way to work or a Friday night takeaway – can mount up. You’ll see where you can make cutbacks to allow for the costs of your new arrival.

The website www.babycentre.co.uk reports that although the average family spends more than £3,000 on their first baby in just a year, it’s actually possible to manage that first year on less than £200. The reality is that although you’ll need to buy some essentials, a lot of the equipment you’ll need for baby can be borrowed or bought second hand.

Going through the process of setting a new budget may mean you need to make some cutbacks, but make them together with your partner and be open about your new financial landscape. If one of you is stopping work either temporarily or permanently to look after your family, make sure you both know where you stand financially.

If one of you decides not to go back to work, carry out a benefits checker to make sure you’re getting the benefits you’re entitled to, and if you do go back to work, see whether you’re entitled to childcare vouchers or tax credits.

Most importantly, take the time to enjoy it. Children grow so fast. If for no other reason, sort out your finances so that you can focus on enjoying the fun parts of being a parent.

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