Having a baby is a great source of joy but it is never cheap to bring up a child. According to research by the Australian Institute, raising a child over 18 years will cost between $159,120 to $548,500.
Most parents would claim, the joy and priceless memories you get from a child greatly surpass the cost. There are smart and simple tips to save on both daily spending and extra purchases.
If you’re pregnant, have a newborn, toddler, or teen. Following these tips, you may save money and create a bright future for your child.
Tip #1: Understand your Finances and Make a Budget
The first most significant money-saving tip is: Learn how to set a budget. You will have control over your finances if you have control over your budget. But where do you begin?
- Keep track of all of your finances for a 30-day period. This contains all of your income and outgoings.
- Identify your monthly expenses, such as mortgage payments, rent, food, utilities, and diapers, and seek areas where you may save money.
- Making a budget will help you to keep track of your family's finances.
- Regularly evaluate your progress and make changes if required.
Tip #2: Manage your Money and Save More
Once you've set your budget, you can start looking for methods to save money
. If you save extra cash, you'll get some help towards future big expenditures or a buffer during maternity leave. You should use a savings account with the lowest interest rate and the most flexibility.
Tip #3: Create a Saving Account for Children's
Set aside a small amount of money each month to build up a savings account for your child. There are several types of children's savings accounts available that allow you to put cash away for your loved ones. The rates are frequently higher than those available to adults, but there are usually limits on how much can be saved. Once a child reaches the age of 18, they can access the account, which could help them establish a decent trust fund.
Image source: napervillemagazinedotcom
Tip #4: Avail Coupon Codes
Look for discount codes to save on the things you truly want to get. Check out the store’s deals, coupons, or any special offer before shopping from there online or offline. Some stores offer discount codes on maternity clothes when you sign up on their site. If you do not check the store’s site you will not be aware of any deal.
Tip #5: Sign up to Cashback Sites
Check to see whether you could be earning some of the money back that you're spending on your kids. Sign up at kids stores websites that offer cash back, by doing this, you will get money back immediately if you register your debit card and use it at participating retailers. To become a member at a cashback store, you can save $300 per year. Stores offer cashback for kids passes which include a highly discounted code for customer attraction.
Tip #6: Try to Avoid Overspending
Simply, spending more money on baby items doesn't guarantee better quality. However, it can be difficult to determine how much you should expect to pay for particular items, and even identify products you should avoid. Doing your research before you go shopping might help you be more aware of how much money you spend in one session. Spreading out costly purchases during your pregnancy may help you better manage your cash flow.
Image source: parentpumpradiodotcom
Tip #7: Buy Used or Borrow Baby Products
Secondhand shopping is a great way to get a good deal because baby items don’t wear out quickly and are not frequently used for a long time.
- If you have friends or family with older children, see if they have any things they no longer use that you could have, buy or borrow.
- Whatever you buy, make sure you do your proper research and thoroughly check it for any potential safety issues.
- It's important to remember that car seats should never be purchased second-hand because it's impossible to know if they've been in a crash that has weakened seats.
Tip #8: Consider Free ChildCare Option
If you and your partner work and want to go back to your job, you’ll have to think about childcare options. You can send your children to a nursery, childminder, or hire a nanny or au pair to look after them. The option varies in costs, but you may be eligible for tax incentives and free childcare from the government.
Tip #9: Reduce your Food Expenses
Avoid going to 'express' stores since convenience comes at a cost. Consider purchasing larger pack sizes to save money per pound. You should plan your meals for the week ahead and stick to your grocery list. If possible, batch cook and freeze leftovers for future meals. In the early days with newborns, pre-prepared home-cooked meals will come in handy, so stock up on Tupperware and thank yourself later. Buying pre-made jars and pouches may be more expensive than making your own baby-friendly foods and freezing individual portions.
Tip #10: Use Loyalty Schemes
Many stores, restaurants, and supermarkets have loyalty programs that reward customers by giving points for every purchase. These points can subsequently be applied to the purchase price of future items. If you'll be buying a lot of nappies, wipes, or formulas from one retailer, loyalty cards from companies may come in handy.
Tip #11: Get Life Insurance
If you are the only one who earns in your family, you should consider purchasing life insurance to protect your child's future. You don't have to pay a fortune for it because there are a variety of solutions available that may suit you and your needs. Did you know that two single-life policies may be more cost-effective than a joint policy shared by you and your partner?
Tip #12: Minimize your Household's Bills
Switching to lower energy, broadband, and mobile deals might save you hundreds of pounds every year. This is especially important during parental leave because you or your partner will be at home longer, doing a lot of washing and using more electricity, water, and heat. Your monthly bills will quickly rise as a result of this.
If you're a parent, incorporating saving into your child's daily routine can help them build a solid financial future. Children who are taught healthy behaviors at an early age are more likely to grow up to be adults who are less financially stressed than those who did not receive this type of training.
As you can see, there is a variety of easy tips to save money throughout the year. What money-saving strategies do you prefer as a parent?
Published on: March 03, 2022