7 Money-Saving Tips for First-Time Parents (And a Checklist!)

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Having a baby is exciting news, especially for new parents. But with a growing family come new expenses and important financial decisions. It can all seem overwhelming, but it doesn’t have to be.

These seven money-saving tips for first-time parents will help you plan ahead of your new baby’s arrival. Then, you can truly enjoy the first moments you get with your little bundle of joy without stressing about finances.

7 Essential Money-Saving Tips for First-Time Parents

The best way to have extra money by the time the new baby arrives is to plan ahead. Here are seven things you can start doing today.

1. Reassess Your Budget and Make Cuts

Take a look at your family finances to understand your spending habits. Where is your paycheck going every month? Are there any areas you can cut back on?

For example, if you have both cable and a Netflix subscription, you could cancel one of those and put that cash toward your savings. Or you could buy fewer new books and use your local library instead.

This may seem like simple personal finance advice, but it can help you save hundreds every month.

2. Don’t Fall for the Consumerism Trap

Expecting parents often fall prey to the baby stuff industrial complex. It’s easy to get tricked by clever marketing into spending upwards of a thousand dollars on expensive baby gear that brands claim you need if you want to be a good parent.

For example, you don’t need the most expensive “techy” disposable diapers on the market (yes, that’s a thing). Instead, why not choose machine-washable cloth diapers? Your bank account (and the environment!) will thank you in the long run.

Always remember this: you don’t have to spend a lot of money to raise a healthy, happy child. Sure, there are baby expenses that you can’t avoid, like hospital bills and child care. But you can avoid the biggest expenses by tuning out those manipulative ad campaigns.

3. Use Cash-Back and Other Offers

Cashback, coupons, and other rewards can help you cut on baby costs—while still letting you get everything your baby needs. If you get infant formula or baby food online, why not save some money when buying it?

Swagbucks is an app that lets you take advantage of a wealth of rewards every day. From enabling cashback on online purchases to scanning the web for money-saving coupon codes, it can help you stick to your budget and save for your child’s future.

4. Embrace Pre-Loved Items

New parents tend to spend a lot of money on baby clothes. Yet they can save thousands of dollars by getting gently used baby items. Hand-me-downs are great for budget-conscious parents.

Think about it. Babies grow so quickly in those first months that they end up wearing each new onesie a handful of times. Why shouldn’t the previous owner give that onesie to another baby so it can have a new life? 

Plus, there are now many companies turning buying clothes second-hand into a trendy, cool, eco-conscious thing to do. You’re bound to find what you need easily.

With some brands, like Mini Boden, Alice + Ames, or Hanna Andersson, it’s common to buy their garment secondhand and then resell them after. For example, Hanna Andersson resale value can be 50% to 75% of what you’d pay HA garments that are brand new with tags.

And although many niche and organic baby brands are spendier, you can find promo codes for high-end kids’ brands that are eco-conscious and heirloom quality (built to last).

5. Make a List of Gifts for the Baby

Some things (like car seats and breast pumps) you should get brand-new. But since they can be expensive, they make great baby shower gifts.

Make a list of what your baby will need. A good car seat, a trusty breast pump, and a handy baby care bag with an extra outfit inside, and so on.

Then, when a family member or your best friend mention they want to gift you something, show them the list. This way, they don’t get you things you don’t need (like a cumbersome diaper bag) and you save money by not having to buy your baby’s essentials.

6. Shop for New Insurance Plans

Since your family is growing, now is a good time to shop for deals on insurance.

Talk to your health insurance provider about the new changes to your life. Ask if your health insurance policy covers birth and newborn care. You may also ask if they have a better health insurance plan to fit your new life as a parent.

Additionally, it may also be wise to take out long-term disability insurance and whole or term-life insurance.

7. Start Saving for Your Child’s Future

It’s never too early to start saving for your child’s education. With the cost of college and the burden of student loans increasing every year, now is a good time to set up a savings account for them.

529 college savings plans are perfect for this. They let you plan your child’s life, accrue interest and capital earnings on your savings, and get tax benefits in return. The sooner you set it up, the more free money they’ll get when they enroll in university. What could be better?

Well, only linking your 529 to Upromise, so you can get even more rewards—namely, special cashback offers on restaurants and everyday expenses. It doesn’t get easier (or better!) than that.

3 Things New Parents Should Do Before the Baby’s Birth

To close off this article, let’s look at three things you should do before your baby is born.

1. Build a Sound Emergency Fund

You should have at least six months of your living expenses in an emergency fund savings account. If something happens (e.g. if you lose your job or have to take unpaid leave), your living costs need to be covered. It’s sound financial protection for your bundle of joy.

2. Save for First-Year Expenses

Saving enough to cover your baby’s expenses for the first year is also a good idea. Draw up a baby budget and try to stick to it.

It should include the cost to deliver the baby, your hospital stay, supplies, healthcare, child care, and so on. If you’re going on maternity or paternity leave, you should also consider how much of a hit your take-home pay will take.

You could even get tax advice to make the most out of qualifying deductions and financial windfalls.

3. Improve Your Credit Report

Lastly, if you can, tackle as much of your debt as possible. Paying off your credit card balances in full and upping your credit score will give you more breathing room if something goes sideways with your finances.

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