MM Budgeting
parenthood Planning for
Little though your little bundle may be, his or her ‘price tag’ is huge! But with a little forward planning and careful budgeting, you can turn your journey into parenthood into a smooth ride…
When you’re pregnant it can be easy to be overcome with great plans for the future… the perfect nursery, the best of baby products that money can buy. That’s why it’s vitally important – even from before you are actually pregnant – to start putting money away for your baby’s own particular ‘D(elivery)-Day’. The media is regularly full of screaming
headlines about the ‘alarming cost of raising a child today’, and there’s certainly no argument that raising a child does come with a potentially scary price tag. After all, just take a look at what you need to buy as your pregnancy progresses…
• Pregnancy books • Folic acid and pregnancy vitamins • Maternity clothes • Pregnancy pillow • Hospital fees (where applicable) • Moses basket/cot • Baby bedding • Baby monitor • Baby nursery accessories • Pram/stroller • Nappies, wipes etc • Baby clothes • Steriliser • Bottles, warmer and brushes • Breast pump • Bibs • Feeding cushion • Changing table and mat • Changing bag • Baby care products • Cloths/towels • Baby bath • Bath seat • Car seat • Baby carrier/sling
10 Modernmum
Phew….that’s some list, isn’t it? MM asked financial advisor Brian O’Neill where parents to be need to start. ‘My advice when you find out that
you’re expecting a baby – or preferably before – is to carry out a financial ‘healthcheck’, says Brian. ‘Take a look at your current income and outgoings and see if there are any areas in which you can make some savings. ‘At this stage you need to ensure that
you can protect both your lifestyle and your family, and so you need to look at protecting your income – particularly if the mum to be is planning on giving up work completely or on taking a longer break than maternity pay will cover. You need to remember that you’re not simply ‘budgeting for baby’, but are making provision for raising your child until the age of 18. ‘Once you’ve ascertained your current
financial position, then you need to make a list such as the one (left) and cost it all out to give you an idea of how much you’re going to need. At this point it can be a good idea to do a simple cashflow or budget – or to get a financial advisor to help you with one. You need to be really honest when you’re doing this. You must include everything that you may be spending – there’s no point in underestimating, otherwise you’re just going to end up in the red. Also, you need to look at your budget or cashflow on a regular basis. There’s no point in making one if you’re going to ignore it. ‘Once you’ve worked out what you need,
you can start putting some money away each month. Count up what you reckon
you’ll need just for baby’s arrival and spread it over the nine months. Put away a little each month – preferably in an account where you’ll earn some interest. If you do that, you’ll find that what may previously have seemed unattainable is actually within your reach!’
Top tips
• You’ll probably find that friends and relatives – particularly grandparents – will want to buy something special for your baby and so, if they offer, allow them to purchase – or contribute to – one of the more expensive items that you’re going to need, such as your pram or cot.
• If you find that your budget isn’t going to stretch as far as you’d thought, then take a look at buying second-hand items. Many pregnancy items – particularly those from early-day pregnancy – remain in good condition and, with a bit of a clean- up can look as good as new. Remember though that you should never ever buy a second-hand car seat as you don’t know its history. In this respect, it’s better to go for a new one that has a guarantee and can also be installed by a dealer.
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