Parents Under Financial Stress After Birth Of Child

Post by Sharat on November 28, 2018 · Under Hints and Tips · Comments Off on Parents Under Financial Stress After Birth Of Child 

The latest research suggests that new born babies cause financial stress for many first time and even experienced parents. 70 per cent of families say they feel financial pressure during the first year of their baby’s life. Whilst most expecting parents do make financial preparations for the arrival of a new child, many also struggle with the costs. Having a baby is a life changing event and should be celebrated but there are certainly financial implications that need to be considered.

Babies are expensive

The cost of paying for everything associated with caring for an infant for the first year of their life is anywhere between $3,000 to $15,000. 20 per cent of parents say the cost of a new baby which includes the purchase of everyday necessities such as nappies and formula as well as one-off costs of purchasing car seats and prams was higher than they expected. All of that does not even include the super expensive cost of day care which is causing many parents to look to grandparents for assistance.

Make a budget

Many parents have to return to work far sooner than they anticipated in order to cover the cost whilst others depend on credit cards to cover their expenses. Credit cards can be helpful if used properly but if they are used to cover the cost of everyday expenses people need to re-examine their budget and look at different strategies in order to cope with the financial strain. It is important to develop a budget and be aware of income and expenditure when it comes to managing the cost of a new baby.

Minimise costs

There are a number of ways costs can be minimised such as buying pre-owned big-ticket items and purchasing daily necessities such as nappies and wipes in bulk or when they are on sale. Parents can also set up a registry so that friends and family can help with the cost, plus there are plenty of parent groups online that provide information on what parents are entitled to in terms of pay and child care subsidies. Parents who feel the need to use their credit cards to make ends meet every month should also review their credit card and see whether they are getting the best deal.

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