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Welcoming a new baby into your life is an exciting and transformative experience. Amidst all the joy and anticipation, it’s essential to prepare financially for your little one’s arrival. Planning ahead can alleviate stress and allow you to focus more on the precious moments with your newborn. Here’s a comprehensive financial checklist to help you get ready for this new chapter in your life.
Give Your Budget a Baby-Proof Makeover
Adding a baby to the mix changes your financial game plan. Start by taking a good look at your current budget and tweaking it for new expenses like baby gear, childcare, medical bills, and the inevitable rise in your household utility bills. It’s a good idea to create a new budget category just for baby stuff—yes, it’s a real thing!
According to a survey, the cost of caring for an infant has soared by 22.4% from 2020 to 2024. Prices for baby milk formula have jumped 37%, while nappies have skyrocketed by 84%. These essentials now make up a quarter of the cost of raising a baby. So, as you prepare for your little bundle of joy, brace yourself for some hefty bills alongside all those sweet baby giggles!
To keep things organised, use budgeting apps or spreadsheets to track where your money is going. We offer a free personal budget planner that’s a lifesaver for managing your finances. It helps you set up monthly budgets, keep an eye on your earnings and expenses, and plan for savings and investments.
Our planner even lets you allocate funds for everything from school supplies to extracurriculars, making sure you’re ready for both the big and little costs that come with a growing family.
Ditch the Debt: Free Up Cash for Baby Gear
Getting your finances in order before a baby arrives is a smart move, and paying off high-interest debt is a great place to start. By tackling credit card balances and other debts, you can free up extra cash for all the baby gear you’ll need, from baby cots to strollers.
Reducing debt not only helps you avoid financial stress but also gives you more room in your budget to cover those new baby expenses. Plus, with less debt hanging over you, you’ll have more flexibility and peace of mind as you welcome your little one into the world—think of it as clearing out room in your budget for baby bottles and babygrows!
Save for Baby’s ‘Uh-Oh’ Expenses
If you don’t have an emergency fund yet, it’s time to start one. Babies come with their fair share of surprise expenses—think unexpected medical bills or those last-minute baby gear buys.
Aim to stash away three to six months’ worth of living expenses. This will give you a financial cushion if life throws any curveballs, like a job loss or surprise medical costs.
Set up automatic transfers from your current bank account to a separate savings account to build your emergency fund without even thinking about it. It’s like putting your savings on autopilot!
Review Your Health Insurance: From the Delivery Room
Take a close look at your health insurance to make sure it covers everything from maternity care to your newborn’s doctor visits. Check if it includes hospital stays and paediatrician appointments. Don’t forget to figure out how to add your baby to your plan after they arrive and what that’ll cost.
Give your HR department or insurance provider a shout to clear up any questions and make sure you’ve got top-notch coverage for your new little bundle of joy.
If you don’t have a health insurance plan yet, now’s the time to start thinking about getting one. Health insurance isn’t just a nice-to-have; it’s essential for covering unexpected medical expenses, especially with a new baby on the way. It can make a big difference when dealing with the issues of the public health system.
Common problems include staff shortages that lead to longer waits and lower quality care, long waits for appointments and surgeries, overcrowded hospitals, and difficulty getting treatment for non-urgent issues, especially for those with chronic conditions.
Check out our article to understand why private health insurance can be a game-changer. It can help you avoid these problems by giving you faster access to medical services, reducing wait times, and improving the quality of care you receive, so you and your family get the treatment you need without unnecessary delays.
Your Baby Deserves the Best Start
Plan Your Maternity Leave: Get Ready for Baby Break
You might be eligible for the maternity benefit provided by the government, but it’s important to check if you meet the criteria. The maternity benefit offers €274 per week for up to 26 weeks (as of 2024).
Take a close look at your company’s parental leave policy to find out if you will be paid or not during your leave. Knowing this will help you plan and manage your finances better while you’re off.
If your employer doesn’t offer paid maternity leave, you’ll need to plan ahead for the difference between the maternity benefit and your usual income. Make sure to budget accordingly to cover any shortfall and ensure your finances stay on track during your maternity leave.
Explore if your partner’s employer offers any family leave benefits that can complement your leave plan. A little planning now can make your baby break smoother and less stressful!
Secure Life Insurance: Leave Beyond Just Nappies
Life insurance is like a financial safety net for your family, ensuring they’re taken care of if anything happens to you. Don’t just think about covering the cost of nappies—consider getting or upgrading your life insurance to cover your child’s future needs.
Term life insurance is often budget-friendly and offers solid protection during those busy early years. Think of it as your way of being a super mom or super dad, making sure your little one’s future is secure, even if you can’t be there.
To figure out the best life insurance for you, how much cover you need and the cost of it, check out our insightful article. It’s packed with helpful tips and answers to all those burning questions you might have about life insurance.
Additionally, explore various policies to find the best cover at the most affordable rate. Just request a quote and get it in under a minute.
Gain immediate access to our comprehensive Protection Package Guide, designed to enhance your financial plan and help you achieve your goals. This guide offers vital tips, step-by-step instructions, and essential strategies for securing your financial future. Don’t wait, download now and start building a stronger financial foundation!
Your journey towards financial freedom starts here!
After you download your guide, one of our expert Financial Advisors will be in touch shortly to provide you with guidance and further relevant information to build you a customised financial plan.
Prepare for Baby’s Arrival with a Solid Financial Plan!
Time to Update Your Estate Plan: Baby’s on Board!
With a new baby on the way, it’s time to give your estate plan a refresh to secure your family’s future. This means updating your will, checking any trusts, reviewing beneficiary designations and powers of attorney and considering the impacts of inheritance tax.
Make sure to name a guardian for your little one, adjust your beneficiaries, and ensure your assets are managed the way you want.
If you don’t have an estate plan yet, now’s the time to create one. If you do, update it to include your new addition and any other changes in your life. Work with one of our estate planning advisors to create or update your plan and cover all bases.
Start a College Fund: Because Nappies Don’t Last Forever
It might feel a bit early, but kicking off a college fund as soon as your baby arrives gives you a big advantage. Look into children’s savings plans for investing in your child’s future. These plans can offer better returns than a regular savings account, helping your money grow faster.
Starting early means your savings will have more time to grow through compound interest and investment returns, making future college costs easier to handle. The sooner you start, the more your money will grow, so you’ll be better prepared when it’s time for college.
Even small, regular deposits can add up over time, so don’t worry about making huge contributions right away. Every little bit helps, and your future student will thank you!
Learn more by reading our article, What Is The Best Way To Save For Your Child’s College Education?
Get a Financial Plan With LowQuotes
Getting a financial plan in place with LowQuotes is a great way to ensure a smoother transition as you prepare for your baby’s arrival. By tackling essential financial tasks, you’ll lay the groundwork for a less stressful and more organised start to parenthood.
With your finances sorted, you can shift your focus to what really counts—enjoying every precious moment with your new baby.
We also provide various financial services, such as mortgages, serious illness cover, pensions, financial planning, health insurance, and savings & investments.
Don’t Wait! Create Your Financial Plan Before Baby Arrives!
All our content has been written or overseen by a qualified financial advisor. However, you should always seek individual financial advice for your unique circumstances.
