Essential Financial Preparations Before Baby Arrives

**This is a collaborative post

Here’s a strange but true thing about pregnancy - while you are going through it, it can seem, in turn, thrilling, fulfilling, magical and downright terrifying. Most of the time, it can be a mixture of all these things and plenty more besides. Few mums-to-be would use the word “calm,” at least not while they are going through it.

Fast forward a few months, however, and you will look back on pregnancy as the lull before the storm. Sure, baby was already making his presence felt, but at least you knew where he was and what he was doing! Use this time to make some essential financial preparations, as once two becomes three, it will seem like you never have this amount of free time on your hands again!

Make a budget

Keeping up with the Kardashians is one thing, and it’s tempting to rush out and start flashing the plastic to get the latest baby kit. Here in the real world, however, there’s a tough financial period coming up and it pays to make a budget. Assess your incomings and outgoings over the next few months, taking into account your maternity leave if that is a factor, and be realistic about how much disposable cash you actually have available.

Decide what you really need

Start with the budget and then move on to the shopping list, rather than doing it the other way around and deciding what you want then trying to figure out how to pay for it. There are certain essentials that you will, of course, need, like baby clothes, nappies, a cot, car seat and so on, while other things can potentially wait. 

Think long term, too

Those first few months will disappear at the speed of light, and before you know it, you will have a mini-me chasing around the house at the speed of light. Now is the time to also think long-term about your little one’s financial future. For example, Wealthify Junior ISAs can be opened as soon as your child is born. You can take advantage of all the usual tax advantages of an ISA and put away anything up to £4,260 every year. The money accumulates interest and is held in trust till your son or daughter’s 18^th birthday. 

Don’t be shy about asking

Friends and family will be eager to help, and that can be tremendously useful. The American tradition of baby showers has become an established part of UK culture too these days, so draw up a list of useful things, or invite people to contribute to getting that ISA up and running!

Be clear

Some of us just don’t like talking about money. However, this is one moment in your life when you and your partner need to be crystal clear and in agreement about your financial aims. Sit down together and work through all the above points. Getting the finances straight will be a weight off both your minds and will allow you to sit back and enjoy the lull before the storm.