The new parents out there are likely concerned about a lot of things. Suddenly, you’re responsible for a little human being who absolutely needs you for the next 18 years or so.
That comes with myriad responsibilities. Underpinning those responsibilities is the need for the money to support your child and yourself (and your partner if you have one). If you’re not rich quite yet but you need to change something about your finances, you’re in the right place.
We’re looking at some financial tips for new parents today. We hope the ideas below will help you get organized and start finding a little more money in your account each week.
Let’s get started.
1. Get Organized
First things first, you’ve got to wrangle that hot mess of a financial situation. Figure out how you’ll track your income and expenses.
Get a general sense of where all of your money is going. Further, establish a time each week that you’ll sit down and look through your finances. Think of this stage as similar to clearing out heaps of dirty laundry before you reorganize your room; it’s not the whole job, but it cuts off a little bit of the stress.
2. Take Stock of What You Have
Parents lose a lot of money by over-buying or wasting things they already have. Get your home organized and see what you have. Maybe you got a lot of essentials in a baby shower.
You might also have an old utility closet stuffed with things like detergent, cleaners, paper towels, and more. Get things that you’ll actually use and keep them somewhere accessible.
You can also use this time to gather any sellable items that you don’t need but have lying around!
3. Buy Things You Use (Not Things You Don’t)
This seems obvious, but hear us out. How many of you buy things you don’t use (or need)? Do you have a few artisanal soaps drying out in your closet?
How many bags of cheese have you thrown out months after the expiry date? How’s your vintage clothe-shopping habit looking these days?
These are the kinds of things that make a big difference. If you’re on a tight budget, simply thinking about these little money-wasters will free up a lot of money.
4. Thrift, Garage Sales, Online Resources
Another thing you can do to keep things trim is to buy used products. There are a lot of things that you need to buy new, so why waste money on the things you don’t?
Thrift stores have heaps of cheap children’s toys, clothes, decor, and more. Garage sales are often hit or miss, but you can find exceptional steals at them if you’re lucky.
Finally, if you’re in need of something specific, look online. Your social media network or other secondhand seller websites should have what you’re looking for at a low price.
5. Make a Budget
Making a budget is tough, we know. It has to be done, though.
Make sure that you create your budget in a way that’s intended to be used. By this, we mean that you should take time and create an organized, user-friendly budget that you can look at, write on, and adjust as needed.
Write out your income, expenses, needs, wants, and more. You can also organize extra expenses into these categories and have a clear look at the excess money you’re spending each week or month.
6. Invest Now
If your budget is showing a little wiggle room, it’s smart to start investing as soon as you can. You might even want to open up an investment account to use as savings for your child.
This way, you’re giving yourself and your child a little nest egg that grows throughout their childhood. If you ever need it, it will be there.
Economies change, jobs go away, and there are bound to be a few times over the next 18 years that you and your family could use a little help. Set yourself up now.
7. Know Your Financial Goals
Craft your budget with financial goals in mind. This can be anything, so long as they’re specific.
It’s easy to slack on your budgeting and spending habits if you don’t have clear goals to work toward. Having specific goals gives you something to hold in your mind in those moments when you really want to spend some frivolous money.
8. Streamline Groceries
You’ve got a new person to buy groceries for! Fortunately, they’re really tiny and don’t eat all that much.
That said, your previous grocery habits will always carry over. So, what do you waste? Are you buying things that are the most affordable?
Consider non-perishable essentials in bulk. A membership to a wholesale seller can be a big help when you’re trying to save money, too.
9. Trim The Fat (For Now)
As you start to get your budget in line, try to eliminate some of the non-essentials for a while. Don’t worry, you can go back to them in a month or two, but it’s helpful to know how much money you truly have in your arsenal.
Cutting out those trips to the movies, the bar, or various internet subscriptions for a month or so is a healthy thing.
Just save that money for now, use it on the baby if you have to, and see if you’re able to reintroduce those things in a month or two.
10. Budget for Important Moments
Life is hardly worth living if you’re married to your finances. Saving is great, but you save in order to have a better life, right?
So, make sure you account for vacations and other things that your family enjoys. They stop being so expensive when you plan for them and use a specific budget. Even if you don’t have a vacation or exciting event in mind, tuck a little bit away each month for a time when you do.
You will, no doubt, want to get out and enjoy yourself after a year of staying at home with the baby.
11. Pay Yourself Forward
If you find that you’ve got extra money each month, it’s smart to pay off your existing debts first. Pay more than you need to and start to chip away at the principal amount.
You’ll save tenfold what you’re putting into the debt because you eliminate all of the interest you would otherwise pay. Your payments will go down over time, and you’ll pay less in the long run.
12. Teach Kids About Finance
Don’t you wish your parents would have given you some more insight into finances? It’s such an important thing in life and few of us really know what we’re doing when it comes to managing money.
Give your kids a leg up and tell them about how to handle money. They’ll be the better for it, and maybe they’ll have a little more savings than you did when they have children of their own!
13. Become a Coupon Person
It’s time to whip out that coupon book and take a little extra time in line.
You never thought you’d be that person, but it’s time. Coupons can save you hundreds of dollars each year, and every dollar counts! You might also find different avenues through which you can save money in almost every aspect of your life.
From oil changes to bassinets, there are ways for you to shave dollars off of the sale price. If you’re really good at using coupons and discounts, you could save thousands of dollars each year.
14. Stay Involved With Your Budget
How many budgets have you made in your lifetime?
Why did those budgets fail? Oftentimes, it’s because the budget isn’t laid out very well and we fail to come back to it. You think, “I’ve got a budget now so I’m going to follow it and save money.”
It’s very logical. That said, the budget just exists and doesn’t do anything to change your behavior. Remember that a budget is there for you to reference as a way of modifying and restricting your financial behavior.
In order for it to work at all, you have to utilize it as you spend. You might even sit down at the end of each day and jot a few things into your budget. Make a note of the money you spent that day, what category that expense fell into, and how that expenditure affects your savings or checking accounts.
It might feel unnecessary at times, but it will tie you to your budget in a way that shifts your perspective on spending. You feel the twang of regret when you write down “$15.65 at Mcdonalds,” then come up $11 short on your electricity bill for that month.
This new connection to your finances could really change things for you and your family. You’ll have more money for the things you need to enjoy your life.
Need More Financial Tips for Parents?
We hope the financial tips above were useful to you. There’s a lot more to learn about budgeting and saving your money for your new family, though. We’re here to help.
Explore our site for more budgeting tips, ideas on making money, and insights into how to make a budget.