How to afford a baby - Financial tips for parents

By Justine Davies, author, financial planner and mum

Financial planning is important at any stage of family life. When deciding to start a family, being prepared for anticipated financial commitments can make a significant difference to family finances in the early parenting years.

How to Afford a Baby: The nine-month plan to finance having a child by Justine Davies, outlines how people can manage their money throughout pregnancy and beyond. This book prepares parents for the financial commitments they will have to make. Justine Davies is eminently qualified to write such a book as a financial planner and member of the Financial Planning Association with a number of years’ experience in the financial industry and a mother of three.

Here she outlines some financial starter tips for new parents:

• Prepare a written budget. A written budget gives you a guideline for where money needs to be spent and where costs could be cut back.
• Keep a record of your expenses. There is no point having a budget if you don’t stick to it (within reason!).
• Start saving. Whether it’s for a specific item or just for a rainy day, watching those savings grow will make you feel good.
• Use credit wisely. Leave your credit card at home, and have a strategy to pay off the balance.
• Plan ahead for big expenses. That way you can avoid nasty shocks – not to mention stress!
• Make sure you have personal insurance, and do a will. Don’t leave your family’s security to chance.
• Free stuff can be fun. Kids don’t need expensive activities to be entertained. Playgroups, playgrounds, libraries and museums are all fantastic fun – and won’t break the bank.
• It’s quality, not quantity that counts. When your kids look back at their childhood in later life they won’t remember the possessions they had, but simply whether they enjoyed their time with you.

How to Afford a Baby:  The nine-month plan to finance having a child by Justine Davies is published by ABC Books.

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