Along with being cute and adorable, babies can often stress their parents out. You were probably ready for sleepless nights and feeding struggles in advance. But did anybody mention about all those inevitable baby expenses for which you should start preparing long before the due date? Of course, life will never be the same as soon as the newest family member arrives. So, here are the best money-saving hacks for first-time parents for the Installment Credits specialists.
Use the 24-hour Rule
We understand that every parent thinks his/her baby is unique and just the most adorable little human ever. But don’t you think that spending $40 on a little cashmere sweater is too much as your baby will probably wear it a couple of times before it gets too small. So, one of the top personal finance hacks for first-time parents is to wait for 24 hours before you purchase items that you’ve added to your cart. Within this time your brain will have a chance to define what you need vs. what things you want to buy. If you still consider that item to be a logical and budget-friendly buy, go for it.
Scour about Craigslist
The list of money-saving hacks for parents wouldn’t be complete without Craigslist. Your family budget can benefit from using this website to buy strollers, “gently used” clothes and even toys. Children grow fast so why wasting hundreds of dollars on items that will soon become useless? Make sure you wash and disinfect the purchases from Craigslist. Also, avoid buying safety-related things like cribs or car seats second hand.
The Rules of Budgeting
Of course, your expenses will increase when the newest member of your family arrives. However, budgeting basics still apply. If you are new to budgeting hacks for parents, we recommend dividing your income into three categories:
- 50% of your income goes to household bills, loan payments and main child care expenses;
- 30% goes to big purchases and other wants;
- 20% goes to savings and/or credit card payments.
A special budget calculator online, like this one, can serve as parents saving money hacks tool and help you grasp the idea of your spending and savings. It’s OK if you can’t break your budget into these three parts at once. The idea is to track your finances and improve your spending.
Buy Gender-Neutral Things
Need any special parents hacks to save money for those who are planning to have more kids in future? Pick gender-neutral clothes and other items so that you can save those things for your future children. This easy hack will eventually save you tons of money. This strategy to purchase items of neutral colors can be applied to clothes, car seats, strollers, and high chairs. And here is an article will help you organize a closet and save some money.
Skip the Nursing-Specific Clothes
Are you planning to breastfeed? Well, this can be extremely beneficial for both your child and your budget. Just because you will breastfeed your baby doesn’t mean you should spend your money on the nursing mom wardrobe. Try using a scarf instead of a fancy nursing cover or wearing zip-up hoodies and shirts with buttons.
Use Online Flash Sales
You can find great deals on baby clothes if you take advantage of online flash sales. There are special flash sale websites that help lower the costs on shoes and clothes for babies. Also, purchasing clothes or shoes the next size can become a very useful strategy. Buy items with room to grow and let dresses turn into shirts or pants turn into shorts as your kid gets bigger. The kids will grow faster than you think, so take advantage of this wonderful opportunity to save some money.
Think About the Future of Your Child
The last but not least important tip for new parents is to start thinking about your kid’s future while they are still small. Many financial experts suggest saving a 529 college savings plan. You can simply open up a bank account for your child and you will control all the money until they grow up and go to college. When you use this money for higher education, it’s typically federal tax-free and state tax-free. Even if your kid is lucky to get a scholarship, you can still use this money to purchase something big or assist another child.
We hope that these budgeting and money hacks for first-time parents would be helpful for any new parent out there. Just remember that these financial sacrifices are temporary. And do not forget to check the tips that will help save for retirement.