Expecting a baby is exciting, but it can also be an expensive time. Follow these steps to make sure you’re prepared for your new arrival.
Step 1: Take stock of your money
Top tip
You can avoid wasting money by asking other mums which baby items they actually needed and used, and what you don’t need to buy right away. Use our Baby costs calculator to work out what you’ll need for your baby and how much it will cost.
It’s a good idea to look at your budget before your baby arrives. Knowing what money is coming in and going out each month can help you feel more in control and plan for what’s ahead.
Start by going through your spending. Split it into essentials (like rent, bills, and food) and non-essentials (like takeaways or subscriptions). See where you can save. Comparison sites can help with bills, and you might be able to pause or cancel things you don’t really need right now.
Make a list of what you’ll need for the baby and check how much it all costs. A little planning now can help you avoid money worries later.
Learn how to cut back on costs and see what extra help is available in our guide Living on a squeezed income.
Budget planner
To help you manage your money, try our free and easy-to-use Budget planner.
Step 2: Review joint finances
It’s completely normal to feel financially overwhelmed when you’re having a baby. Many people do.
Your income, spending, and priorities are likely to change, especially if one of you is taking time off work.
That’s why it’s so important to plan together. Talking openly about money can help reduce stress and avoid surprises.
Writing your plan down can make it easier to stick to and adjust as things change.
Here are a few simple ways to stay on track:
Be honest about your finances – share everything so you’re both on the same page.
Set some ground rules – for example, agree to check in before spending over a certain amount.
Make time to talk – even short, regular chats can help you stay in control and support each other.
Step 3: Reduce your debts
Top tip
If you can’t pay off all your debts straight away, pay off the most important bills and payments first.
It’s important not to ignore debts or only stick to just paying the minimum each month.
If you take time to deal with debts now, it will save you money in the long run.
Find out more in our guide How to prioritise your debts
Step 4: Open a savings account
If your income is going to change, which is likely when a baby arrives, and your outgoings go up, it’s important to save as much as you can now to help manage future pressure points. Cutting back on spending is a good start, but make sure those savings are set aside to build a cushion for the more expensive years ahead.
The sooner you start putting money aside, the better. While you can, build up your savings to cover essential baby costs and see you through any period of lower income.
It might be better for you to go for an easy access account that you can dip into if you need to, rather than one that will lock your money away.
But if you think you’ll be tempted to spend your savings, make it a little harder to access cash.
For example, try choosing a savings account with a different bank, so it’s less easy to move money into your current account.
Find out more in our guide Bank accounts to keep and save your money
Join our Facebook group
Join our private Budgeting and Saving Facebook groupOpens in a new window for money-saving tips and support from a community of savers.
Step 5: Boost your income
You could be entitled to benefits and other help towards the cost of raising a family, such as Universal Credit and Child Benefit.
What you can claim depends on where you live and your personal circumstances.
Top tip
Pay your utility bills automatically using Direct Debits and standing orders as you’ll often get a discount for doing so by your provider.
Find out more in our guides:
Take a few minutes to check which benefits you can claim and how much you could get a month with our Benefits calculator.
You can also search for grants using the grant checkerOpens in a new window on the Turn2us website.
Other money-making ideas
There are other ways to boost your income, such as doing some work from home.
You might also think about raising cash by selling unwanted possessions or recycling old mobile phones or laptops.
There are dozens of money-making ideas to help get you startedOpens in a new window on MoneySavingExpert
Step 6: Think about your pension
It’s easy to focus on day-to-day costs when you’re having a baby, but it’s also important to think about your future.
Taking time off work for maternity or paternity leave can affect your pension, so it’s a good idea to understand what that means and how to protect it.
Financial planning for a baby
Use our tool to get a personalised list of all the money-related dates to do with your pregnancy and new baby. It can also help you budget for expenses, when to ask about parental leave, and tell you when you’re able to claim certain benefits and grants.
