Throughout a person’s life there are different moments that are a before and after: The choice of studies, the first job, the moment of becoming independent or becoming a mother or father. The latter, from an emotional point of view, is thrilling and unique. Nonetheless, fatherhood and motherhood also have associated consequences due to the expenses they entail. And the thing is that a baby entails new expenses for the family budget and failing to have proper planning that accounts for them might lead to family finances imbalance.
For this reason, and seeking to aid in the planning of household finances for this long-awaited moment, at Banco Sabadell we have drafted an additional chapter to our Basic Finance Guide which will help you prepare your household finances for the arrival of the new family member.
- Save up during the pregnancy stage. The 9 months of expectancy prior to the baby’s arrival could help you establish new savings dynamics for the future. In addition, all the money you do not spend during this time period could help you fund expenses once the baby is born.
- Pay attention to diet. Many times, parents choose to purchase ready-made food once the baby is done with the nursing period. However, making mashed food and other meals at home—in addition to being healthy—can help you save up some money every month.
- Only buy what you need. In their excitement before the birth, it is very common for families to buy lots of clothes and toys which have a very short usability period. Before buying something, try to think if it is really something basic for the baby or if, on the contrary, it is an unnecessary whim. In this way, you can save money to use on other things when necessary.
- Reuse clothes and accessories. In line with the previous point, you surely have family, friends or neighbours who have already gone through what you are going through and can lend you clothes, accessories or toys that they no longer use. Thus, in addition to giving these items a second chance at life, you will be accessing a new source of savings.
- Open a savings account for your child. It is increasingly common for parents to open a bank account for their children in which they periodically deposit some money. This can be very useful for them when they are older and can help them have a good financial situation when they reach adulthood. You can take a look at our dedicated account for the little ones in your home.
- Create an emergency fund. Throughout your children’s childhood, certain unexpected events may arise that you were not planning on. For this reason, it is advisable to have a fund in which to deposit money, where possible, so that you can draw on it when necessary.
- Tax deductions and public aid. Depending on where you live, there are certain public aids, as well as tax deductions, that you can take advantage of. Get informed.
You may think that it is a bit hasty to take all these points into account, but by following these tips your domestic economy will be less affected and you will be able to face parenthood with more peace of mind so that you can enjoy this important moment in life free of stress.
