Understanding Your Finances As A Parent

When you are a parent, understanding finances can be tough. You are only getting the rate of pay that your maternity leave pays, which is likely not the same as you were making before.You are confused and tired and everything inbetween. Which only makes this task a little harder. Trying to manage finances on top of being a parent is a whole new world that you need to understand, but we are going to try and make things a little easier for you in this article, so keep reading if you would like to find out more.

Savings Are Key

Savings are a key part of your finances. You never know when the need is going to arise for some extra money that you don’t have. For example, if something needs repairing and you don’t have the money on hand, the savings will be a saving grace for you. Or, if you find yourself needing to look into expert legal representation for criminal cases, this can be expensive. Not that this is going to happen, but we’re trying to come up with expensive scenarios that you are going to be able to soften with savings. 

The best way to build up your savings is to add to it little by little. Don’t try and get yourself into debt trying to save money because this is entirely counterproductive. You want to be able to have money available when you need it, but not at the detriment of your month to month life. It’s true to say that saving can sometimes mean that you have to go without your little luxuries, but that’s just going to have to be how it is for now.

Kids Are Expensive

Kids are expensive and anyone who tells you otherwise is either lying, rich or doesn’t have a clue. There are so many things that you need to buy for them, and they grow so fast so you are constantly replacing clothes which is expensive. If you aren’t breastfeeding then you are going to have to purchase formula which is also expensive, then there are the bottles, the nappies, the medicine, the dummies and anything else that they need. So, if you used to have quite a lot left over at the end of the month but now you don’t, trust us when we say that it is not a mistake.

You are likely going to have a lot less free money than you are used to. But, this is the way that it is and there is nothing that you can do about it. Your kid needs all of these things, and now you know where a chunk of your bills go.

Bills, Bills And More Bills

Bills have probably always been an issue for you, and that’s completely normal. Bills always feel as though they are piling up and as though there is no way out but you always manage to get them paid. A lot of your money is also going to go on bills, and with a newborn in the house or with kids in the house depending on what season it is, you are going to have the heating on more than you would have when it was just you.

Something For You

If you have the money available, ideally you should try to keep something back to treat yourself with, even if it is only small. You are doing one of the hardest jobs every single day, and you deserve something for yourself when possible. Of course, this isn’t always going to be the case, as sometimes your kids are going to need something more than you. Just remember that there will come a time again where you will be able to stop panicking about your finances. For now, keep in mind that you have got this and that your finances right now may feel extremely tough, but they are manageable. The most important thing is that you try to stick to this budget that you have come up with so that you know where you are.

We hope that you have found this article helpful, and now see some of the things that you need to understand about your finances as a new parent. It’s important to know that even when things feel tough, there is always going to be something that answers your question, which is usually why ‘why do I have no money?’. That’ the life of a parent for now we’re afraid. But at least you will understand your finances a little better.

 

This is a collaboration post 

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