Thimbl. March Press Release
How To Save Money & Budget for a Newborn Baby
Header: Personal finance expert shares suggestions on how to save money for a newborn baby.
Data released in January 2023 estimated that new parents can expect to spend approximately £9,113 on their baby in his or her first year.
Becoming a parent is an exciting life event that shouldn’t be overshadowed by financial stress.
Alex Kosuth-Phillips, a personal finance expert at thimbl.com, shares five tips on how to budget ahead of welcoming your new arrival.
1. Set a budget, and be realistic
“In the months leading up to your baby’s due date, you may wish to set some time aside to put a financial plan in place. Make a list of everything you think you’re going to need in baby’s first year and write down how much you expect to spend on each.
It helps to be scrupulous here. It’s natural to want to buy your baby the best of everything, but don’t overlook cheaper options in favour of big-name brands. From prams to clothing, it’s important to remember that lower priced non-branded items usually work just as well.
The reality is that your baby isn’t going to care whether their pram is a designer brand or a high street dupe.”
Alex adds, “We talk about the concept of ‘wants and needs’ a lot when it comes to money saving. Separating the things we need from the things that are simply ‘nice to have’ is a crucial part of budgeting. For example, your baby needs nappies, bottles, and a crib. Your baby doesn’t need milestone cards, a pumpkin Halloween costume, and Converse-branded booties.
“If money is tight, you should prioritise needs before wants.”
2. Second-hand savvy
“Shopping second-hand could also help your baby budget.
Your baby is going to grow so quickly, particularly in the first year, so if you’re working to a budget, spending money on fancy clothes and accessories that they’re only going to outgrow could be wasteful.
Second-hand deals are not to be sniffed at. Check out sites and apps such as eBay and Vinted to bag a bargain. Facebook Marketplace may also be useful in tracking down a decent deal locally.
Additionally, there’s no shame in taking full advantage of hand-me-downs from family and friends.”
3. Start your own baby box
“It’s never too early to set up a baby box to help spread the cost of necessities.
You may wish to make a start before you finish for maternity leave and still have your full wage coming in.
Whenever you’re out and about doing your weekly shop, add a pack of nappies or a couple of muslins to your trolley until you have a nice backstock of essentials to keep you going once your little one arrives.”
4. Set up a wish list
“Are you having a baby shower? It’s likely that your guests will bring gifts.
To prevent being given the same thing twice, consider setting up a ‘wish list.’ Wish list templates can be created for free online and shared with your guests beforehand.
Expectant parents are often bought newborn clothes, which are only useful for a short period of time. Your wish list could include clothes for a variety of ages to see you through your baby’s first 12 months. This could also help to save you money by reducing the amount you need to buy yourself further down the line.”
5. Take advantage of any available benefits, grants, and perks
“If you receive either Income Support, Employment and Support Allowance (ESA), or Jobseeker’s Allowance, you may be eligible for a Sure Start Maternity Grant which is a one-off £500 payment to help towards the cost of having a baby,” Alex explains. “You can claim the grant within 11 weeks of your due date, or for up to six months after your baby’s birth.
“In Scotland, you could be eligible for a Pregnancy and Baby Payment.
“Child Benefit can be claimed for any child up to age of 16, or 20, if they’re in full-time education. As of January 2024, the Child Benefit rate is £24.00 per week for the eldest or only child, and £15.90 for any additional child. Payments are usually made every four weeks, although in some cases they could be made weekly.
“You can find out more and check your eligibility for Child Benefit on the Gov.uk website.”
Alex adds, “In the UK, women who are either currently pregnant or have given birth within the last 12 months are entitled to free prescriptions and dental care.”
thimbl. has shared tips on how to budget for a newborn baby.
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About thimbl.
The thimbl. credit card and the thimbl. Loan are issued by Vanquis Bank Limited. Digitonomy Limited (trading as thimbl.) is a credit broker not a lender, and provides its services to Vanquis on an exclusive basis in respect of each of these products. Digitonomy is paid commission from Vanquis for these services. If Vanquis are unable to provide you with one of these products, Digitonomy will try to find you an alternative product and will receive commission from the provider of that product if you enter into an agreement for it. Digitonomy's registered office is: Steam Mill Business Centre, Steam Mill Street, Chester, Cheshire, CH3 5AN. Registered in England and Wales, under company number 08385135. Digitonomy is authorised and regulated by the Financial Conduct Authority, and is entered on the Financial Services Register under reference number 690249. Licenced by the Information Commissioners Office, (registration number ZA007309).
Website: https://www.thimbl.com/
Alex Kosuth-Phillips - Personal Finance Expert at thimbl.
Alex is the Compliance Manager for thimbl.com and is responsible for ensuring our website follows Financial Conduct Authority (FCA) regulations. He is passionate about ensuring that we treat all our customers fairly, and do all we can to ensure a positive experience and outcome for our customers.
Alex has been featured in various news articles and even on BBC television, providing information and guidance on how to avoid financial fraud and scams.