Birthing a child is a costly endeavour. An insurer said this year that parents will spend an average of £8,500 on their babies’ first year of life. You can use these 10 tips if you’re considering starting a family or already have one.
Look At Your Maternity/Paternity Pay
The statutory maternity or paternity allowance (SMP) is payable upon reaching 26 weeks of employment and earning more than £95 a week. It pays 90% of your gross weekly earnings for six weeks and then £123 a week for 33 weeks. Check out the Directgov website for more details. Your employer may also offer a maternity scheme linked to the statutory maternity/paternity pay.
Start To Save
Before a baby is born, parents should save three months’ income for emergencies, say experts at the Institute of Financial Planning. The waiting period between learning you are pregnant and trying to save up for it is between seven to eight months. It’s more important to develop a habit of saving than to save a particular sum of money. Even if you start by saving just £10, you can always increase this amount.”
Budget To Live On A Reduced Salary
An unexpected drop in income is one of the most damaging financial consequences of having a baby. To get used to living on just one salary, try doing that before the baby arrives – that way you can build savings and become accustomed to it.
Get Life Insurance
Life insurance can often be the last item on an individual’s financial priorities list if he or she is living a single life with no dependents, or maybe one half of a working couple. The fact that you’ve just had a baby should be a trigger to take measures in order to make sure you get adequate cover.
Make Space And Sell your Clutter
The birth of the baby will require both of these items, so now is the perfect time to get rid of all your clutter. You can use the money that you make to buy some essential baby items at Foryourlittleone, and the extra space will give you the room you need to store all your babies’ needs.
Apply For Child Benefit
Make sure you apply for child benefits once your baby has arrived. It is best to submit your form as soon as possible since the government will only backdate child benefit payments by three months. Each additional child costs £13.20 a week. The first baby is £20 per week. You can either download a form from the Directgov website or receive one with the “Bounty Pack” you’re given during birth.
Open A Child Savings Account
When your first child is born, saving a little each month should be something that you do to make sure they are well protected once they reach the age of 18, or when they turn 21.
This guide should help to give you an idea about the costs linked to having a baby. Do you have any others to add? Please share them in the comments below.