Saving money on your savings and investments
Top money saving tips for new families
Personal Finance and Savings
It is estimated that the cost of bringing up a child during the first five years of life is £46,695.
With this in mind, here are some top tips for new families on a budget.
Finances in the home
Consider changing your mortgage to reduce your monthly outgoings. It would be a good idea to choose a fixed rate, that way by knowing the precise rate makes budgeting easy.
Re-evaluate your choice of vehicle
Think about trading in that two-seater sports car or trendy coupe for an economical run-around with low fuel emissions and modest maintenance costs. A more family-friendly car would also lower the cost of motor insurance and vehicle excise duty.
Your income
An organised budget is a must when starting a new family. It is a good idea to save any extra money that you would have spent on socialising or going to the gym throughout the pregnancy. This will be extremely useful, especially when the Statutory Maternity Pay (SMP) sets in.
Vouchers Galore
Many companies such as Boots have specific baby clubs, where you collect points from your purchases and redeem them in store. These companies have different incentives throughout the year with lots of free offers and money-off vouchers.
Set up a babysitting circle
The escalating cost of childcare is bound to be a worry for all new parents, so a babysitting circle might be worth considering. Parents could save around £30 an evening by getting together with a few friends and exchanging babysitting favours.
Real nappies
These days real nappies are easy to use and wash, better for your baby and can save you lots of money. It is estimated that disposable nappies will cost parents more than £920 over two and a half years. Cloth nappies, on the other hand, come in at under £200 over the same period.
Claim your benefits
Don’t forget to claim your child benefit, which all families are entitled to. This will then trigger the delivery of a £250 Child Trust Fund (CTF) voucher for you to invest on behalf of your child. Also, check with your local government office if you’re entitled to claim Working Family Tax Credit, which can go a long way into helping with the cost of childcare.
Make your own purees
The cost of baby basics can quickly add up, so why not do something about it and make your own instead. Making your own baby food is a quick, easy and much healthier alternative to convenience jars. Apples, pears, peaches, plums, mangoes and strawberries all puree well.
Second-hand saver
Babies make for very expensive little bundles of joy – even the basics can cost a small fortune. The good news is that a little savvy shopping can save you a lot of money. Check out the internet for cut-price equipment. You could also try putting up a request with details of things you would like to buy on your company’s notice board or at the nursery.
Goodbye maternity wear
Make use of internet sites such as ebay and clear out your wardrobe once the baby arrives. Most maternity wear is good as new due to the fact that it has only been worn over a short period of time. During the pregnancy, ask friends and family if they have any old maternity clothes at the back of the wardrobes or stashed away in the loft/attic.
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