Building a Financial Cushion While You’re Pregnant

It’s safe to say that having a baby is expensive, with beautiful baby grows crying out to be purchased, a top-of-the-range pram that you simply must have and an endless cycle of nappies always at the top of the shopping list.

Whilst we could all go completely overboard and fork out thousands of pounds buying expensive products and clothes, it’s actually possible to raise a baby without breaking the family bank.

According to a report from 2010, the average middle-class family will spend approximately £9,000 on baby-related products during the first 12 months. For many parents, particularly if one is forced to take time off work, these expenses can be difficult to deal with.

If your pregnancy is accompanied by financial worries about how you’re going to pay for all the products your baby requires, building a solid financial cushion whilst pregnant will give you peace of mind and a clear advantage once the newborn child enters the world.

Achieve family financial order whilst you are pregnant

From the minute you find out that you’re pregnant you should start cutting out superfluous expenses in the home and tie down some financial loose ends. These ‘loose ends’ should include making moves such as refinancing your mortgage, paying off a credit card before the baby is born and swapping your mobile phone to a better deal.

Open a savings account

If you’re coping with pregnancy symptoms such as sickness and fatigue, financial issues might be the last thing on your mind. However, because you have more time whilst you are pregnant and before the baby comes, it’s the best time to think about securing your finances.

This should include opening a savings account that offers a good rate of interest. You don’t have to save much, but saving a little each month will not only make you feel better but may come in extremely handy once your little one arrives and your finances become stretched.

Setting up a direct debit that takes money from your current account and puts it into a saving account can be a good way to ensure you save a little each month and shouldn’t eat into your usual spending habits too much.

Fine-tune your budget

Pregnancy is the perfect time to fine-tune your budget. Calculate what your weekly outgoings are and include everything from house bills and mortgage repayments to shopping and leisure activities. On a second column, estimate how much you think you will spend on products such as nappies, childcare and baby food when the baby arrives. Add the pre and post-baby expenditures together and calculate your incomings. This will determine whether you will be able to cover the post-baby expenditures with your income. If not, look for areas to eliminate certain expenses and save money where possible.