As a new parent, saving money may seem like a challenge. There’s so many things that you and your baby need. Medical bills, diapers, clothes, baby gear, maternity wear - the list could go on.
But even in the midst of this, having some money advice in advance can make a difference and help you avoid some money mistakes. Here are some ways you can make the best use of your money once you’ve had your baby.
1. Know What To Buy In Bulk
You may be in a rush to buy a bulk of the cutest baby clothes for your little one, but keep in mind that babies grow at a rapid pace. Your newborn will need clothes in a new size before you know it. Shop for clothes as and when the need arises,and start with just a few.
What you can buy in bulk after the first month - diapers. Wait to see which ones suit your baby’s comfort, and then buy in bulk, because the bigger packs are usually cheaper, helping you save in the long-term - after all, babies need an average of 2,700 diapers in just the first year, and the diapering will continue until your child is potty trained.
Always talk to other moms to understand what you should and should not buy in bulk.
2. Save on Gear
You may want to be prepared with strollers, carriers, rockers and more, but think before you buy. Look for discounts and offers, and choose good quality gear to avoid spending on repairs and replacements. Avoid buying additional gear like walkers, tricycles and toys in advance - your baby may simply not be interested in these.
When it comes to baby gear, save yourself some money, as most of them are reusable. Baby strollers, walkers, bath tubs, carriers and high chairs can also be borrowed from your relatives, cleaned and reused, because they are often made from easy-clean material. If needed, you can borrow a breast pump from a relative who is no longer using it. Replace the nipple shields and ensure cleanliness.
3. Spend Smart, Save Big
Small changes in lifestyle can make big differences to your savings. As new parents, you will be making many changes to make your lifestyle baby-friendly, and one of these changes includes your spending habits.
Some of these tips will help you spend smart after having a baby:
- Minimize dining out - it’s both pocket-friendly and healthy.
- Put off luxury expenses for the time-being.
- Track your spending and prioritise them based on needs and wants.
- Always create a list before you shop - this will help you avoid unplanned expenses.
- Use discounts and offers to your and your baby’s advantage.
These smart savings may feel small now, but they will amount to a considerable amount in the long run.
4. Manage Savings Well
Keep aside savings for 3 main purposes - unexpected expenses, your child’s education and your retirement.
- The fund for unexpected expenses should be easy to access in case of emergencies.
- The other two funds on the other hand, should ideally be allowed to grow with time.
One such way to grow your fund is to invest the money and enjoy returns. The HDFC Life Click 2 Invest ULIP is one such plan that allows you to enjoy returns for a minimal charge, helping you to grow your wealth and keep your family financially secure.
Remember that it is never too late to start. It is important to think in the long-term, make good changes and smart choices when it comes to your family’s finances. The small changes you make today may grow to be the big boost for your child’s dreams tomorrow.