Managing Your Money After Giving Birth

It’s so exciting to be able to welcome a new baby into your home and your life, but there’s a lot to think about and put in place before, during, and after you give birth, and it’s wise to start planning as early in the process as possible to ensure you’re absolutely ready to give your baby the best life possible – and to enjoy doing so.

Money is something you’ll definitely need to think about. You’ll have another mouth to feed, literally, and you might not be working as much as you did, plus there are other things you’ll need to do that are going to cost money… it soon adds up. That’s why it’s so important to know how to manage your money after giving birth, and with that in mind, here are some ideas for you to potentially put into action. 

Find Out What You’re Owed

The first step in managing your finances is to find out precisely what you’re owed in terms of benefits and other support. Most of the time, new mothers won’t be left to fend for themselves, and many governments, as well as most employers, have a variety of different ways to help people after they’ve had a baby. You might be owed money for maternity leave (and don’t forget, the father might be owed for paternity leave as well), and then there are child benefits to sign up for, as well as some tax cuts and help there too.

You’ll also be owed compensation if there was a traumatic birth, especially if your child was injured during the birth. If they were hurt in such a way that it’s going to affect the rest of their lives, compensation should be enough to help pay for specialist care and equipment, for example. If something went wrong, it’s worth speaking to experts when it comes to Erb’s Palsy claims, for example, so you can go through the process and get the money your child needs. 

Set Up A Child’s Savings Account

Although thinking about the here and now is vital, it’s also beneficial to think of the future, and setting up a child’s savings account is one way to do exactly that. Look for one that has a good interest rate, and search for different ways to save, like setting up an ISA, for example. 

Once you’ve found an account, automate the payments into it so you never miss anything, and try to forget it even exists! That way, you won’t be tempted to take the money out too early, and you can build up a nice nest egg to hand over to your child when they go to college or move into their own place, for example. It’s amazing how much even a small amount each month can add up by the time your child reaches 18, so the earlier you start to save, the better. 

Cut Down Your Other Expenses

Having a baby is expensive, and if you want to make sure you’ve got enough money to take care of them, not to mention put into savings for them, it’s a good idea to cut down on your other expenses wherever you can. 

Look at what you’re currently paying out each month, and determine which of those payments is absolutely necessary, and which can be stopped – old subscriptions to things you don’t use, for example, are easy to miss when you’re used to paying them, and can easily be stopped. And when you’re shopping for baby items, shop smart; babies grow quickly, so think about buying second-hand clothes and even toys because they’ll be cheaper and you might hardly get any use out of them anyway.