Ways In Which New Parents Can Protect Their Finances

If you are planning for the arrival of a new baby to your family, it can be very exciting and a joyous time for you and all your family and friends. However, have you had the time to consider the implications that a child might have on your finances- and if you have, have you thought about how you will be able to better manage the major financial change that will come around with the birth of a baby? Between buying clothes, nappies and toys, your budget can quite easily be blown out of the water, leaving you in the red. This could result in your credit score dropping without you even realising it and before you are able to change the outcome. If you are an expectant parent or a new parent, then you really cannot afford to let your credit score to slide. The following tips should help to ease the financial burden that can come around when you become a parent…

Create A New Budget

If you had a budget before your baby arrived then you are well on your way to managing your money effectively. Now that there is going to be a baby in the mix, the numbers you originally had are more than likely to change, particularly in the long term. From feeding supplies to child care, having a baby can be expensive but it doesn’t mean it should be impossible. Once you have your baby and start to get a sense of how much you are spending, sit down and make a new budget that accurately reflects your expenses. It will help to track where your money is going and you can keep better track of where there are cost-saving opportunities.

Pay Your Bills Via Direct Debit

Particularly in the first few weeks of your baby being born, you may find that your life is increasingly hectic and you will be juggling doctors’ appointments and a steady flow of visitors. This, combined with a lack of sleep and adjusting to a new routine, can make it all the more easy to forget to pay your bills. All it takes is one missed bill payment to send your credit score spiralling. Your payment history counts for 35% of your overall credit score, so be sure to schedule your bills to come out automatically by setting up direct debits. It could make all the difference to your credit score and give you one less thing to organise and worry about.


While many expectant parents are conscientious and try to save up as much money as possible ready for the arrival of their baby, there are always instances where accidents or emergencies happen and they are left out of pocket. If you are in need of a quick cash injection for whatever reason, then it may be worth exploring the option of applying for a short term loan. Short term loans will allow you to take out anywhere from £100 to £1000 to be paid back over a period of weeks or months and can be just the thing you need if you find yourself short of money before payday.

Don’t Overdo Your Baby Shopping

When a baby is on the way, it can be all too easy to go on a baby shopping binge and buy all the clothes, toys and accessories that shops are filled with nowadays. Try to differentiate between the necessities and things that are just added extras and remember that you will probably be gifted certain items by your friends and family anyway!

When it comes down to ways in which you can protect your finances as a new parent, it all comes down to making smart decisions with how you use your money and how well you keep tabs on your bills too. Following the aforementioned tips will go a long way in helping you avoid unnecessary problems with your cash flow and allow you to fully enjoy the introduction of your little bundle of joy into the world!

Generic advice is not a service regulated by the Financial Conduct Authority.