When you become a mother or father, it’ll be your job to ensure that your little one is safe, warm, and fed at all times. These aren’t the only challenges that you will face as a new parent, though. To ensure that your bundle of joy is afforded that the standard of living that he or she deserves, you also have to make sure that they cared for in a financial sense.
Parenthood brings with it a whole host of different lifestyle changes and new responsibilities, one of the biggest being the need to handle your finances with a lot more care. To ensure that your cash stretches far enough to keep your little family happy and healthy, be sure to put the following advice into practice.
Set up a joint account with your partner
If you and your partner are to care for your child in the best way possible, you have to be open with one another. This should be the case with regards to every aspect of parenting, not least when it comes to looking after your little one in a financial sense.
The best way to make sure you and your partner are on the same page in this instance is to set up a joint bank account in both of your names. Doing this will make sure that both of you remain abreast of your family’s financial capacity and, thus, it will ensure that neither of you overspends when you cannot afford to do so.
To get the most out of your joint account, you should arrange for:
- Maternity pay and housekeeping to be paid into this account
- Regular expenses to be paid out of it
- A monthly allowance to be paid out of this account into both yours and your partner’s individual accounts
You may be used to spending freely, but that cannot be the case when you have a child. Quite simply, you’re going to have to tighten those purse strings when you become a parent!
First and foremost, when it comes to sensible spending, it’s important that you focus on the basics. Forget the designer kids’ clothing for the time being — they’re nonessential. Instead, focus on kitting your child out in clothes that are warm and comfortable.
Make savings whenever you can
Every penny counts when you’re a parent. Making even the smallest of savings could allow you to, say, take your child out on a fun excursion or buy them a new toy.
To make savings, you should:
- Stop smoking: This won’t just be good for your health, it’ll also be good for your wallet.
- Don’t do be afraid of hand-me-downs and used toys: So long as they’re in working condition, they may as well be brand new!
- Use Paycheck Guru’s tax calculator to see if your number of dependants warrants you a tax refund or reduction: If the help’s out there, why not make full use of it?
Whether your little bundle of joy is on his/her way or whether you’re already a parent, you should be sure to take note of all the financial advice and assistance laid out above.