Preparing for a baby and thinking about credit


As any parent will know, kids don’t come cheap. From the moment that pregnancy test comes back positive to the day they fly the nest – and usually well beyond – there’s a whole host of things that you’ll need to spend money on for your children.

If you’ve been a bit of a reckless spender in the past, enjoying the freedom that comes with having no dependents, you’ll want to make sure your finances are in order by the time your little one arrives. If you use one it might be worth having a look at various credit card offers rather than just sticking with the same old provider.

Balance transfers
Every penny counts when it comes to budgeting your family’s finances. So if you’ve got outstanding balances on existing cards and are paying a hefty interest rate on them, consider making a balance transfer to a cheaper card. There are plenty of lengthy 0% balance transfer deals out of there, giving you the breathing space to get your finances in order.

Spreading the cost
When you’re preparing for a new arrival, it’s not uncommon to have a list as long as your arm of things you’ll need. From the obvious like cots, bedding, car seats and clothes to the little expenses that crop up from time to time, you could end up spending a small fortune. Get a lengthy 0% period on purchases, pay off at the very least  minimum amount or more each month and spread the cost of your larger purchases.

Get a cashback card
When the time comes to compare credit cards, keep an eye out for
cashback credit card deals or cards that offer a discount in certain stores, especially if these are the types of stores where you’re going to be spending money on baby products.

Saving money through natural parenting
Of course, there are MANY ways of keeping the costs down alongside using a credit card to its full potential. Breastfeeding for at least the first two years – as recommended by the World Health Organisation  can save hundreds. Investing in eco-friendly cloth nappies rather than using disposables can also save you a small fortune, as can engaging in baby-led weaning rather than spoon-feeding your child expensive purees and jarred baby foods.

Of course, getting through the baby stage with your finances intact is only a small part of the battle – just wait until you’re needing to spend on expensive school uniforms, class trips, driving lessons and even the deposit on their first house!

by Mike Brains who blogs for www.financialfacts.org

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1 Comment

  1. Maria @verybusymama
    August 11, 2011 / 8:29 am

    I’m still trying to figure out how to balance my £! After a lifetime of having money for yourself you suddenly have “other” costs to consider. Thanks for the tips! x

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