Babies are expensive! Here’s how to cope

28/08/2018

There’s no doubt, babies are a celebration. But parents will also tell you there’s no escaping the many expenses that come with that little bundle. It can be overwhelming!

If you’re lucky enough to have a baby shower and generous friends and family, you just might have clothes, blankets, toys and toiletries to help you along in those first few weeks. All these items can add up – and it’s just the beginning! Let’s not forget medical costs, nappies, car seats and also a possible reduction in income due to maternity leave.

There’s no doubt, parenting comes with financial considerations and responsibilities. We’ve put together these seven practical tips to help you find your way:

  • Have a medical aid or hospital plan

If possible, ensure you have some form of medical aid plan – this will ensure that your medical expenses don’t become a financial burden. The last thing that you want to do is pay for the medical bills with your credit card as this will completely over extend your budget. 

  • Buy in Bulk

When it comes to nappies, dummies, bottles and creams, ensure that you buy in bulk as buying these items in bulk is far cheaper than buying them in small amounts.

  • Save, Save, Save

Before your little one arrives, the best thing to do is to save, save, save! Yes, a loan will certainly offer some relief if you happen to reach a tight spot, but saving money will ensure that you have the extra pennies to deal with any unexpected expenses. Check out African Bank’s Tax Free Investment account 

  • Make a budget and track spending 

If your housing and other costs have increased owing to your growing family size, make a new monthly budget that reflects those added expenses. If you find you can't stick to the budget on the first or second try, don't give up, simply adjust your budget until you come up with one that works for your family.

  • Plot a Future Financial Plan

Primary school, high school, university and everything in between comes at quite a hefty price. When your little one is born, ensure that you open an investment account  or unit trust that is sure to grow over the next couple of years. Whether you use this money for school fees, uniforms or one day hand it over to your young adult, a financial safety net is sure to let you rest assured that your child’s future is taken care of.

  • Prioritise financial goals

Many new parents feel torn between competing goals, such as saving for college, retirement and a down payment on a house. The best course is to do what you can comfortably afford, which may mean temporarily putting some priorities on the back burner as opposed to stretching yourself too thin.

  • Automate your savings and/or debt payments. 

Once you've identified your financial goals, you are more likely to make steady progress toward your goals if you set up automatic payments and/or deposits. By automating your savings or debt payments, you are prioritizing your goals and forcing the rest of your life to fit around them.

Having a baby is, without a doubt, a costly endeavour. However, with a little planning and creativity you can save money and start a lifestyle of making your budget stretch.

 

Up Next

A fixed deposit account can secure a financial legacy
If you’re an adult with dependants who rely on you, it’s important to start planning for the future and finding the highest fixed deposit interest rates to secure a financial legacy for your loved ones.

Publish Date: 17/09/2019
Read more
Manage kids’ pocket money with a joint account
Giving your child pocket money and depositing it into a joint account, is an excellent way to teach them the value of money.

Publish Date: 16/09/2019
Read more
Get the best loan for your side-hustle
You don’t have to rely solely on the income earned from your job alone. There’s instant loans and ways of getting more money flowing through your bank account.

Publish Date: 19/09/2019
Read more
Savings options for retirement planning
Want a mini-retirement? First grow your wealth with the best savings interest rates and create smaller goals rather than just one big retirement goal.

Publish Date: 23/09/2019
Read more
Stay financially disciplined with online banking
Building discipline when it comes to finances isn’t always easy, but the rewards are worth it. Start slowly using your online banking app, we show you how in this blog.

Publish Date: 02/10/2019
Read more

About African Bank

Our mission is to be a successful Retail Bank offering a wide range of products and services to the consumers of South Africa. The people who work for African Bank represent the diverse population of South Africa; therefore we are a reflection of you, of all South Africans. We seek to provide value - more than our consumers expect of us. We promise to live our purpose 'humanity through banking' in all that we do and we are confident that we can, because 'We are You'.