Note: Just to be clear, this video is not meant to be taken as advice. Also, your individual circumstances are probably different from the examples we’ve shown. The information in this video is correct as at 6th April 2016.
Mum to be: I wonder how we'll cope financially when the baby is here? My salary's just going to fall away, pretty much!
And we've got our debt to sort out first.
We've got to sort that out beforehand, but how?
Oh, we'll have to start budgeting soon. There's so many things to buy too; a pram, a cot, clothes. How will we afford all that?
Dad to be: Hmmm, the economy's looking uncertain as usual, and I'm about to support a family of three on my income.
Bit of a worrying thought.
Perhaps spend a bit less on all this, spend a bit more time at home. I wonder how that will affect me and Julia?
Ah and there's our credit cards and debt too, paying them off now might be hard I guess. Perhaps we could try and swap them onto lower interest or fixed rate loans while we still have two salaries. Fix our monthly repayments.
Yes. We'll need to know exactly what's going out every month; I guess I should look into it at some point soon. Gosh, and we'll have lots to buy too!
Voiceover: When you first discover you're pregnant and expecting a baby it's natural to worry about how you'll cope financially. It's not unusual and many expectant parents feel the same. It's important to sit down with your partner and share your worries. Work out a budget together as soon as possible so you can see exactly what you both need to do. And the perfect time to do this is before the baby arrives.
Make a list of all your incomings and outgoings for the months before and after your baby is born. If you're both earning now, one salary is likely to drop to statutory maternity levels soon after the birth... For many, this drop in income is a source of worry, but by talking about it early on you can make sure you factor it into your budgets.
And remember, once your baby is born you may be entitled to some benefits. The most common are Child Benefit and Tax Credits. Now is the time to find out which may apply to you.
Of course you'll be excited about buying things for your new arrival as well. But before you start spending, make a list. Think about which items you can buy second hand, or ask family and friends if they've got things their older children have grown out of or no longer use. And don't forget the internet - there are some great bargains to be had online!
When you do all this, budgeting for a baby isn't scary. It's simple. The sooner you start discussing your financial situation together, the sooner you can enjoy the fun stuff!
Planning your budgets
Try out our baby budgeting calculator. It’s a good place to start and might even remind you of some of the many things you’re going to need.