A child in the UK and the household budget
When are you planning a child or after his birth, every family wonder whether they will cope with the upbringing of the child not only physically or spiritually, but also financially. Although there is the well known saying that if God gave a child, so he will help him, but every parent prefers to prepare thoroughly, so as not to to get the short end of the stick. Before the birth of the first child you should make a plan of five steps that will prepare our personal budget against possible problems ..
Step one – Planning of purchases and household finances
Maybe when you see the two lines on the test you don’t immediately plan what and how much we should buy for the baby, but the closer the date of birth, the usual shopping list is sometimes fuller, and particular products or clothes are placed at the bottom of the wardrobe waiting for itd. debut.
“You can achieve the greatest success in the world, but if you do not have someone to love, it isn’t a reward. A sense of accomplishment that you get from the other person, especially a child, will always be more important than the fact that people recognize you on the street. ” Madonna
When planning what to buy best is to ask someone, who has more experience than you. Fortunately, we usually somewhere have, eg. a sister, who recently gave birth to a baby or the perfect contact with the other moms.
While some of the ideas may be deleted at the beginning (eg. the walker), many of them coincide with the purchase list of girlfriends or sisters. Who would have thought that over the 30 years little will change on children! The date of birth is hypothetical and it happens that a child is born earlier. Therefore, it would be a huge mistake to leave everything to the last minute.
If you have problems with saving, be sure to explore the 10 ways to save money in the UK.
Even though huge imagination, it is difficult to imagine her husband choosing clothes for children or breast pump for his wife. He would overpy or he wouldn’t pay attention to important issues. So, we should save money reasonably! On the day of birth, it is best to buy a layette for newborn baby and knowledge that during the first year of life, even every 2-3 months clothes should be changed for larger and that a baby can be allergic to the powder and so on.
Therefore, it is easy to calculate the monthly costs, which you will have to deal. This will help you to plan the family budget for next year, of course, with a supply in case of illness or other changes, which can not be predicted.
Step Two – What can you save?
The layette list and lit of what we spent money before the baby is born, should not form the basis of calculation of personal finances. First of all, check from what you can resign after a birth of a baby.
For example, a mother is unlikely to be able to go to the gym, and and she probably won;t have time. Therefore, cost estimate of life after birth is not likely to have the item of “gym”. Most often the notice period is one month, so before you will realize it, you will probably pay a month unnecessarily.
In the first place, we always put paying bills and it’s worth doing it on a regular basis as soon as we get salary. Then, we know exactly how much is this month to spend, because it is worth to realize that incomes are lower than before birth because of a lower rate, which is paid to the mother on maternity leave. And, when it comes to the layette you must limit it to the indispensable minimum. It is not known whether the mother will feed the baby with the bottle or breast, so we should buy feeding accessories only if necessary, without freezing the money too early. The best is to check prices at various price points before shopping and consult the quality of them with mothers, who used such accessories.
Therefore, it is important to conduct household budget. For example, I know how much I spend every month and know exactly on what money is spent and it is very easy to find savings. Just look through your expenses on the charts and set the new budget as it is done in the company. As someone works in finance department knows what I am writing. Most people, unfortunately, laugh from it. Well, I also laughed some time ago. But as I see my savings account, I have a different view of this.
Step Three – Parents always pay their debts
To paraphrase Lanisters from “Game of Thrones” we pay debts as quickly as possible. We do not need interest on loans or for servicing the credit card. And, the best is to resign from multiple credit cards to one and to consolidate all consumer loans. One installment, one payment. Besides having a credit card you often can not give up shopping. It is much easier to control over their own consumerism as we have rigid household budget. Somehow, if you know how to save.
You have plenty of time to prepare for the new role, so do not wait until the last minute, because people very often take the so-called, quick loans. It is worth to start reading parenting blogs.
Step Four – Don’t keep money in a sock
Any pennies, which mostly are in men's trousers or women's handbag, represent quite a large sum, so you should think about opening a savings account. Now, any excess of money goes to interest-bearing account, and we just look like it grows.
It is worth mentioning that tax exemptions for parents, who will open special accounts for their children. Among other things, in the statement of the best savings accounts I mentioned Kid's Regular Saver where payment can be made from only £10 per month to 4% per annum. The tax exemption is based on the fact that you do not have to pay tax on profits.
An interesting idea is to select such account without a card, because there is no temptation to withdraw money on everyday purchases. In the future, a lot mothers are going to have to go back to work, which involves the employment of a nanny or going to a nursery. so I better start slowly to save that such fees were not too big blow to household finances in the future.
Be sure to read the section on saving on the blog and subscribe to guide for saving in the UK, because I guarantee you that at least your annual expenses fall by £ 1,000. How do I know? Because I see that my savings grow through smart financial decisions. See for yourself for example, what are the advantages of marriage in the UK or on how to save on bills.
So let's get ready financially. As we see seen two lines on the test and we know that we have approximately nine months to prepare to a baby, so by this time we can put at least 200 pounds on a saving account. For new parents it will give even to £ 400 every month and during 9 months it will give to £ 3600. Shopping won’t be terrible with such money.
Step Five – Earn more!
Parents, who live in the UK are entitled to Child Benefit and the account will be credited with the cyclic form of government assistance. It helps in planning your monthly expenses. Maybe, you also should have a grant? It is better to check than to regret that you have not done this! When you are at home with a baby, you can also earn money. There is really a lot of ways to do it: from filling in questionnaires via the Internet to various professions like twisting pens, packaging envelopes and so on.
But I must admit that I do not know anyone who would earn on this but I know a few people that earn sometimes substantial sums due to remotely work at home by performing various services. Soon I will explain about this on the blog.
Remember that when doing chores we often find the old mobile phones and other things that without obstacles we can sell. We can have finally more space in the wardrobe and in the account – more money.
And what is your happy medium for the preparation of finances, when the family will increase?
NOTE: I present private opinions and I am not responsible for the readers' decisions. I always try to present current information but may no longer be up to date. Therefore, before making a decision, please verify them and consult a licensed financial adviser.
Hey! My name is Radek and I work hard in England everyday and the thought that I will be able to retire after 68 years is not in my favor. That is why I will prove that it is possible at the age of 55 or maybe earlier. See on this blog how I want to achieve this.