Congratulations! You’re expecting your first child, or perhaps you are seriously considering it. It’s an exciting time of life, but also a daunting one. Once reality kicks in, you may find yourself worrying about the cost of a baby and how you are going to stretch your family budget to include this new addition (and everything that comes with it).

Here are a few things you can do right now to help save up money for when you become parents.

1. Cut out extra costs

Sit with your household budget and work out what is a need and what is a want. For example, meals out and entertainment costs aren’t necessities and can be trimmed down. Research the ongoing costs of things you will need when baby arrives, such as nappies, formula, etc. and start living as if these expenses are already going off your account. This will help you get used to living on your new budget.

2. Sell what you don’t need to buy what you do

Look around your home and gather everything that you no longer need or use. Selling these online or to friends will help raise money to pay for what you need when baby arrives. It will also clear the clutter to make room for all the baby furniture and equipment you’ll be buying.

3. Open a savings account

Open a dedicated savings account for baby-related things to help you stay organised. You can provide the details to friends and family members who may want to contribute cash as gifts towards the new addition. As a nice touch, let them know what the money will be used for.

4. Save for medical expenses

Speak to your medical aid, if you have it, and get a breakdown of all expected and possible costs of delivering a baby and any care that might be required pre or post birth. To save money, say no to any add ons, like a private room – a nice-to-have, but not a necessity. If you do not have medical aid, speak to the hospital where you would like to have your baby delivered and find out how much it will cost and what care is offered. Once you have a clear idea of how much you are looking at, start setting aside a monthly amount into savings to pay for this.

The information contained in this article is for information purposes only and does not constitute professional advice.

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