How To: Save Money When Having a Baby
We’ve discussed the costs of raising a child, and can confirm: kids are friggin’ expensive. But there are many ways to save on daily expenses and in the long-term.
Some practical ways to tackle the issue.
Live below your means.
This could mean downgrading your lifestyle or cutting unnecessary expenses. Are you paying for multiple subscriptions that you rarely use? Cancel them. Are you spending too much money on eating out? Time to pack your own lunches. This is a small but efficient way of trimming your expenses, and every little bit counts. This also applies to big purchases. Consider if you really need that brand new car. Cut back on the material stuff; it’s a small price to pay for the endless joy that kids bring.
Buy second hand or unbranded.
Check out sites like Craigslist, Facebook Marketplace, or eBay to find great deals on pre-owned or even brand new items. Don’t feel pressured to buy the top-of-the-line, equipment, toys or clothing that you’ll only need for a few years or even months. Ignore the name tag and go for hand-me-downs where possible. Instead, invest in things that will last for years or even a lifetime. It’s not only better for your bank account, but for the environment.
Expand your means.
Take a look at your finances and see where you can boost your savings. Make use of tax benefits available to parents which can offset child care or other qualified expenses. Look into employee packages your workplace might offer. More employers are understanding the importance of providing family-friendly policies, so don’t be afraid to ask about child care and dependent benefits.
Turn to family & friends.
Find help through your support network. Whether that’s having a family member or friend to watch over your child, or getting advice from experienced parents, make the most out of the resources already available to you.
Let’s dig deeper. We consider why we may feel a certain way when it comes to this topic and how to deal with it.
Parent guilt and the pressure of being the ‘perfect parent.’ Understandably, new parents feel the need to provide the best for their child. However, the ‘best’ is often confused with the most expensive. Therefore, it’s important to understand the difference between what you actually need and what is unnecessary and impulsive. Rather than spend $5000 on a brand new top-of-the line stroller, put that money towards your child's 529 plan and help offset future college debt. Consider the cost and whether you and your child will truly benefit from it. In our consumerist world, we are taught that material things bring happiness and status. Coupled with the rise of social media, parents are under more pressure than ever to buy the ‘best.’ Kids are not born materialistic, and as babies they really won’t know the difference between a $50 toy and your old hairbrush. So don’t beat yourself up when you decide not to buy that hunk of over-engineered plastic or aggressively large plushy. It’s not worth your peace of mind.
We’ve compiled some actionable items for you to tick-off, because who doesn’t love a to-do list? Some items you may not have thought about, some you may have already got on lock. One thing’s for sure though, it never hurts to be over-prepared.
Check your finances
☑ Brush up on your basic personal finance and know how to save for big ticket items.
☑ Collaborate with your partner and set up a realistic budget.
☑ See if you qualify for any tax-benefits.
☑ Look into your workplace family-policy and the type of support available to you.
☑ Review your expenses and cut out any sneaky recurring subscriptions you don’t use.
☑ Scrap non-essential, daily expenses and invest in more cost-efficient solutions.
For example...
☑ Invest in that coffee machine. While you’re at it, buy a reusable coffee cup because the earth is dying.
☑ Love buying books? Invest in an e-reader. Or even better, check out your local library - yes, they still exist!
☑ Plan more budget-friendly dates. Who says you can’t have a candle-lit dinner at home?
Shop smart
☑ Shortlist essential baby items and stick to it to avoid impulse purchases.
☑ Do your market research to avoid overspending. No one likes to get ripped off.
☑ Explore the wonderful world of online marketplace. You can often find brand new items at a fraction of the cost. Check sites like Craigslist, Facebook Marketplace, or eBay on a regular basis to snap up bargains.
Reset your mindset
☑ Be mindful whenever you’re shopping. We often get sucked into the belief that happiness can be found through material things. Reframe your thinking when it comes to spending money, we recommend listening to this podcast episode.
☑ Remember the big picture. Cutting expenses does not mean lowering your quality of life. It’s about reorganizing your priorities in order to achieve your family goals.
Disclaimer: This is not an exhaustive guide that will address all concerns. We will never claim to have the right answers for everyone or promise a magic, quick fix - they simply don’t exist. Instead, we hope we’ve sparked some ideas and helped you get on the right track.
