One of life’s great wonders is looking down at your bundle of joy and see a little essence of you staring back. Babies are amazing but raising them can be very expensive! The Centre of Economic and Business Research reported that the cost of raising a child until they are 21 now costs a whopping £229,251! With that wholesome figure, we need very wholesome money saving tips. Here are our top tips for those of you that have a little one on the way!
One of life’s great wonders is looking down at your bundle of joy and seeing a little essence of you staring back. Babies are amazing but raising them can be very expensive! The Centre of Economic and Business Research reported that the cost of raising a child until they are 21 now costs a whopping £229,251! With that wholesome figure, we need very wholesome money saving tips. Here are our top tips for those of you that have a little one on the way!
Speak to your Partner
It takes two to make a baby. With that in mind, our most important tip is to talk to your other half. When that little treasure arrives, your lives can be turned upside down in an amazing way and being able to communicate well with your partner is important. One of you may end up working less or not working at all. This will have a huge effect on your household earnings and this should be factored in for future spending. Two heads are most definitely better than one!
Plan your spending
You are going to find a whole load of novel items landing on your shopping list which, you probably wouldn’t have seen since you were a baby - nappies, baby clothing and baby food, to name a few. Be rigorous in planning your shopping to ensure you can cut costs where possible. Changing your usual supermarket and buying supermarket branded items can often save heaps, without sacrificing quality. Some retailers even have special baby promotional offers! Look out for these, they can save quite a lot of money in the long run. Look at buying in bulk if you can afford to, this will also save you some money over time.
Borrow and Re-use
We were all babies once and you may be surprised by how much of your own baby stuff your parents still have. Asking friends and family for spare toys, clothing and cots are just a few ways to massively cut your spending. Also remember that when it comes to toys, those little ones will judge them on fun factor, not on cost. I.e. a cardboard box with a few snazzy stickers, could fulfil their wildest toy dreams!
Set a budget
After working out the items that you definitely need to buy, set a budget and do your best to keep to it. If you have trouble, don’t give up. If it really is too difficult to stick to, make a few adjustments and see how that works for your family. Perhaps keep a little budget book so you can see on paper how much you spend monthly or weekly. It may be an eye-opener.
Invest for their future
The baby years are only the start. As your little cherubs grow up, larger costs such as school and university fees can come into play. If you are planning to put money aside to save up for those years, QuidCycle has an incredible way of helping you make the most of your money. By investing small amounts each month using our Monthly Investor with a 3.9% APR, you can securely build a large fund that will be ready and waiting.
Good luck to all you future parents! Instead of seeing a baby as an extra expense, maybe view it as an investment - an investment that will in turn look after you in your old age! Please be aware that your Capital is at risk.
Disclaimer: The above information does not replace financial advice. Please ensure you seek independent financial advice before making any decisions regarding your finances. We also recommend that you carry out your own research to ensure that this is right for your own unique circumstances. Please note that we sometimes link to other websites but we cannot be held responsible for their content.