First baby money worries

[glittershoes]

Just in a bit of a panic really. We have just found that I am expecting our first baby next summer so I have taken a look at our finances to get prepared and I am freaking out!

We have just signed up for a car loan and insurance is going to be through the roof (both just passed tests), we are not particularly high earners and my DH is a term in a part time degree. I have no idea how we will manage.

We really need to move (in a one bedroom flat at the moment) and it just seems impossible!

Does anyone have any advice on the best place to analyse our finances, now and then when I am on maternity, to see what we can and can't afford?

Will we get any help through benefits/tax breaks that I can look at?

How much do I need to budget for maternity clothes/baby things?

Any help and advice gratefully received!

Having a baby is cheap. If your on low income you can have childcare paid so you can still work. Things probably wont be that much different than they are now for you really.

Congratulations! You should get a book about money when you having your booking in appointment with the midwife, it talks through all the basics you need and what benefits you may be entitled to etc. If you haven't had your appointment yet make sure you ask for it because sometimes they forget

Congratulations glitter!

Money Saving Expert is a really useful website about all aspects of money saving (sorry, I can't link I'm on my phone!).

at one of the previous posters saying that babies are cheap, but you definitely can keep the costs down. Also Google NCT sales, and check out some of the Baby things that you really need threads on here.

Best place to analyse our finances..... I recommend the free 'Microsoft Money' software as a good way of putting all your income and outgoings in one place where you can see what's really going on. Failing that, a simple spreadsheet. Helps to categorise things as

1. Regular income ... wages, grants, benefits, anything that is regular weekly or monthly
2. Irregular income... anything else you can think of such as casual work, gifts etc.
3. Regular/essential outgoings.... things like rent, utilities, insurance and others that you absolutely have to pay for every month top priority
4. Irregular/non-essential outgoings.... things like groceries, petrol, annual holiday, christmas presents

Looking at your income, see if you can increase it at all with extra work, selling posessions you don't need and applying for extra help (more later). Looking at your outgoings see if you can reduce them or dispense with them all together. DH may be able to get help via the NUS... or possibly postpone his degree until you've got things stabilised.

Will we get any help through benefits/tax breaks that I can look at?... Recommend you check your details through http://www.turn2us.org.uk/benefits_search.aspx the Turn2Us Online Benefits Checker There is extra help available for people with children who are on a low income.

How much do I need to budget for maternity clothes/baby things?... you can spend as little or as much as you can afford. Freecycle, car boot sales, donations from friends and relatives (people who have no more plans for children are often keen to get rid of old equipment).

Congratulations.

Turn2Us Online Benefits Checker (link that works!!)

Thanks all!

I will start to have a look now. I know we won't qualify for free childcare etc but have no idea what other support there is so you have really helped.

It is so daunting to write every figure down and see the different sides mount up and diminish!

Daunting but really it's the only way to do it. Anything else is the financial equivalent of sticking your head in the sand and only results in nasty surprises! You'll find that once you're 100% familiar with your income and outgoings, once you start keeping a really close watch on your spending (and obviously your DH has to be fully on board with the whole thing as well), then you'll automatically be more conscious of what you spend and that will mean you spend less.

How much roughly do you both earn? Have you had a look at your company maternity policy? The minimum you will get from them is 6 weeks at 90% of your salary, followed by SMP which is around £125 a week. Are you currently renting? If so have a look on rightmove to see approx how much more it would cost you to rent a 2 bed, you may find it's not much more (where I live, a 2 bed flat rents for approx 30 a month more than a 1 bed!). If you own your home, do you have equity in it? Have you made sure you have the best deal on your mortgage?

Regarding maternity clothes, personally I wore lots of my normal floaty tunics with leggings, only maternity clothes I bought and wore regularly was a coat and jeans. As someone else said, you can always buy cheaply second hand. Baby furniture, clothes and toys - you will feel like you want to buy everything but half the stuff I got I never used, and wish now I'd bought second hand or just not bothered with at all! Only thing you have got to buy new is mattress to reduce risk of cot death.

Finally, no matter how much or how little money you have, you will always manage. I was terrified, as me and dh never had any spare cash, but you really do, besides which we don't spend much on socialising now so we are saving all that money anyway!!

in my experience babies can be as cheap or as expensive as you choose. There's no need for a bigger flat for several months after the birth. The child benefit was paying for nappies, formula and clothes (plain white mothercare clothes, not UCB with mickey mouse on). If you breastfeed it'll be even cheaper. I don't know if they still do the Sure Start grant, if they do and you qualify it can help with one-time buys, like pram, cot etc. Have a look on ebay for second hand stuff, there are some great stuff, NCT sales as well. Your partner will get some benefits as a parent in education I think (possibly translated in childcare hours -can't remember). It's very easy for marketers to guilttrip parents itno thikning that they don't get the singing-dancing-flashing mobile for their newborn they're stunting hiw/her development and educational prospects. Be sensible. Buy what you need. Ask other parents what they have used and was a waste.

Mostly, enjoy your pregnancy and later your sweet little baby :-)

There is maternity pay/SMP, child benefit and child tax credits (make sure you look at the changes from April to see if they affect you.)

Don't buy more than one set of vests, clothes etc in small sizes - people are very generous when you have a baby and will give you lots of things. Same for the big purchases - ask around about getting them second hand. If you buy anything new don't ever pay the full price, you don't need to, there are so many sales on. Go to supermarkets for loads of things - eg Asda baby event. Try internet sites as well eg. kiddicare. Much cheaper than places like Mothercare (Horrible place). Also think about how you would use everything - ignore the lists that say you must buy.... because most of it you don't need, especially if you need to save money and space. Look on the netmums for sale board for second hand things.

Join all the baby clubs eg supermarket ones, baby food and nappy companies - you get free samples and vouchers from them all.

Allow for the fact that when you have a baby your utility bills will go up (so much washing and more time in the house) Make sure you are on the cheapest tariffs for everything.

Don't go overboard with items. My dsis spent £600 on a buggy and only used it twice, because it was so impractical. Buy bigger sizes of clothing as babies grow quickly. Buy second hand goods and accept offers of second hand clothing, you may not be comfortable with this particularly as this is your first child but you will save yourself a lot of money
Don't worry, you WILL cope.