Budgeting Tips for New Parents: How to Save More Cash

When you're preparing for a new baby, everything changes. There's a moment somewhere just before your due date when you'll realise that nothing will ever be the same. That's a good thing for many people - it means that you're going to discover new forms of excitement and joy that you never had the opportunity to feel before. However, you might feel a little panic too - particularly about your budget, and that's perfectly normal. 

Having a child is going to completely uproot your home finances and make you re-think the way you manage your money. New parents need to carefully budget every expense if they want to ensure that they don't get into debt during those first few years of a new baby's life. With that in mind, here are a few tips to keep in mind when you're getting ready for your bundle of joy to arrive. 

1. The Basics Still Apply

When you have a new child, your income and expenses are likely to change drastically. However, that doesn't mean that you have to forget about budgeting or change your approach entirely. You'll still be looking for ways to make the most out of the money you have, and a good way to keep on top of everything is to stick to the standard 50/30/20 rule when it comes to stretching your income. This simply means that you dedicate:
  • 50% of your income to essentials like minimum loan payments, household bills, diapers, child care, and other must-have purchases. 
  • 30% for financial payments you want to have - like high-speed broadband and television channels. 
  • 20% for savings and payments on other debts that might harm your finances long-term. 
2. Practice Living on Less Cash 

When you have a child, you're going to have less money to go around. After all, you not only have to pay for new things like formula and diapers, but you'll also be living on a single income - even if this is just temporary. One parent is likely to take some paternity or maternity leave, while another might abandon their work entirely. 

In the months that lead up to your due date, it's worth practicing what it will be like to live on a lower income. The more you do this, the easier it will be to save for upcoming expenses and childcare. Simply put any of the money you won't have after you have the baby into your savings account. 

3. Consider How Your Expenses Will Change

The financial change you go through when you have a new baby can be different depending on your strategy as a parent. It's important to make sure that you're prepared for anything, by getting ahead of the curve and figuring out how much extra you're going to need to spend on things like child care, and regular expenses like diapers and formulas. 

There are plenty of tools online that can help you with your calculations, and if you're struggling, you can simply make a list of all the things you think you're going to need to buy each month for a general insight into what your costs will look like. 

4. Reduce Costs Wherever You Can

While we all want to keep bills to a minimum and make as much cash as possible - life is rarely that simple. In the first year alone, raising a baby can cost you thousands of pounds, and to some end, you're simply going to have to prepare for the financial impact. However, there are a few ways that you can keep costs to a minimum, for instance:
  • Look online for parenting coupons, freebies, and vouchers. 
  • Buy second-hand instead of getting things brand-new
  • Request must-have items from friends at your baby shower
  • Borrow things from other people with parents
  • Shop around for childcare options
If things get very drastic, you can always consider eliminated unnecessary costs like gym memberships or streaming services, and even downgrading to a smaller home - if you have enough space for the new arrival. 

5. Look for Ways to Make More Money 

Finally, when there simply isn't enough cash to go around, it's time to look for additional ways to upgrade your income. If you're having trouble with your day-to-day expenses, then it's important to look at all your options as carefully as possible. For instance, you could consider signing up for some freelance work online while you're looking after the baby at home. You can schedule your hours at times that suit you, so you can make cash when your little one doesn't need you.


  1. This post is crazy helpful and I don’t even have any babies yet! I do panic that when it’s my turn I will have zero money!

  2. Some great tips! Could have done with these when I had my first x

  3. This is such a useful post, and I think a lot of it applies even to non-parents.

  4. It is crazy how much one tiny person impacts your finances! Such useful tips here! x

  5. I love the tip about practising living on a tight budget! I never thought of doing that before!!

  6. These are some fantastic tips, I do a thing every few months of when shopping think to myself 'do we need or just want' and have managed to save some money just stopping and thinking before making a purchase

  7. Good tips. It is difficult trying to budget when kids come along. But I've also found that we tend to live to our means and it's amazing how much we can cut out of our spending when we really try! x