Preparing financially for children

oshkosh

Hi folks,

My wife and I are looking to start a family and was wondering whether anyone knew of a good guide for preparing yourself financially for it?

I've searched this site but found nothing, which I was a little surprised about.

Any useful websites, tips, books etc that people have used would be great.

Many thanks.

pukkamum

Prepare to be skint!
Prepare to wear the same clothes for a long time so the kids can go on a school trip.
Prepare to not eat at any takeaway places anymore as what was once a cheap meal now times by five is a fortune!
Prepare to spend a fortune on the 'must have toys' for xmas only to find them broken and discarded a month later.
Prepare to spend money and time making nice meals only to be told they would rather have nuggets and chips.
Prepare to pay £30 for a pair of school shoes and for them to be wrecked/non fitting within a month.
Prepare to spend x amount of money on school clothes and coats only for them to be lost.

Hope I haven't freaked you out too much!

abailey54

I'd be really interested in responses to this too - am trying to not get too stressed about this aspect of starting a family but don't want to be completely ignorant of it.

Pukkamum - I'm relieved that I wasn't too freaked out by your post! I can cope with that - don't think my kids will be able to have the must-have toys but that never ruined life for me when I was a child

My guess is that childcare would be an important aspect - I nearly had a panic attack when my sister told me how much she pays for her little ones - though ours wouldn't need to be in full-time care so it depends on your situation.

And maternity leave - would it be worth taking a whole year, depending on whether stat mat pay would be less that working full-time and paying childcare (and travelling expenses for work etc) - or can you save during pregnancy so your wife (or you, depending on what your policies at work are) can take more time off and it not matter

I think there are lists around on what you need to purchase before your baby's arrival and I'm sure many of these can be gotten from freecycle/car boot sales/nearly new sales to save extra pennies

whitewing

Some really, really good advice we had from here was to practice living on one salary. We did that and used the other to overpay the mortgage. This caused much less of a shock when DD did come along. We still haven't got back to smooth-flowing finances though, partly because cost of living has risen so much. Am looking forward to DD being out of nappies.

lushlifesaver

I'll be following this thread with interest too, OH and I have started saving £10 per week each in a separate account which is our 'baby' fund so we're trying to make a start on preparations. We have also looked up any money/benefits we would be entitled too etc.

As he only works part-time and is actually hoping to have stopped working by the time we have a little one childcare would work out alright for us (he's an athlete and may be going fully funded in the near future) our outgoings are low for a couple our age (22 and 27) and whilst I have students debt it is affordable for us as long as I get a new job soon (have tendered my resignation but already have an initial interview lined up for tomorrow!) as are my phone and gym (only other outgoings apart from general spends/food etc on my part). We have a council bungalow as OH is disabled so rent remains affordable there...

If anyone can point us towards a 'financial checklist' type thing for starting a family that would be great!

oshkosh

Thanks folks.

Living on one income will be something we'll be trying. What we might do is try living on one income plus maternity pay as this is something we should be able to rely on.

I know some grants have been taken away e.g. Health in pregnancy grant, but I was wondering if anyone knows of any replacements?

Thanks.

angelil

I am surprised that you said you couldn't find a financial checklist in preparation for having a baby.

Maybe there isn't one on here, but a quick google revealed all of these and more:

http://www.kimsfinds.com/Kims_Finds/Having_a_Baby_Financial_Checklist.html
http://www.divinecaroline.com/32/36012-financial-checklist-expecting-parents
http://www.thebabyregistry.co.uk/top-tips/your-new-baby-what-to-buy-checklist

Some of them are American, but have helpful aspects nonetheless.

SmlSave

Another vote here for practise living on one salary and save the other wage.

Start thinking 2nd hand rather than buying new when you do have children.

Any benefits/grants are wage dependant, we just get the £80 child benefit every month. If you go on the gov website you can put in your income and it will let you know if you will get anything more.

whitewing

Probably the very best advice is to stand in the middle of the High Street with your wallet open whilst giving money to everyone who walks by, smiling as you are doing so. Repeat daily for 18 years.

lilymay1

OP. I don't think it's even worth looking into what 'help' you may get in the way of benefits. Things are changing every year and by the time your child/ren comes along, they will have changed again.

Probably best if you ignore all benefit related income and see it as a bonus if and when you are entitled to it. Afterall, relying on benefits is never a good place to be.

FastCash

pukkamum wrote: »

Prepare to be skint!
Prepare to wear the same clothes for a long time so the kids can go on a school trip.
Prepare to not eat at any takeaway places anymore as what was once a cheap meal now times by five is a fortune!
Prepare to spend a fortune on the 'must have toys' for xmas only to find them broken and discarded a month later.
Prepare to spend money and time making nice meals only to be told they would rather have nuggets and chips.
Prepare to pay £30 for a pair of school shoes and for them to be wrecked/non fitting within a month.
Prepare to spend x amount of money on school clothes and coats only for them to be lost.

Hope I haven't freaked you out too much!

I definitely agree with all of the things that you have listed here! Once you become parents, you should be willing to do a lot of sacrifices to save for the kids.