4 Money Saving Tips for New Parents
Everyone knows that having a baby is expensive. The average cost of having a baby in Utah is $10,000, and research shows that the average middle-income parents spend just over $14,000 on baby-related expenses during the first year. This means it is important to develop good financial habits from the get-go. Seasoned parents have plenty of money management tips for new parents that will help you protect your finances and your credit score. Take a look at the following smart money tips for new parents.
1. Set Up Automated Payments
Most new parents are frazzled. Life is hectic, parents get little sleep, and it can become hard to remember to pay regular bills like the cable, credit cards, water, electric bills, etc. In order to make sure your credit score stays intact, and that you don’t pay exorbitant late fees, it is important to make sure everything gets paid on time. Banks offer automatic bill pay features which allow new parents to set up payments for all your creditors. You can schedule bills to be paid on specific dates each month, and money will be withdrawn automatically and sent as payment, so you don’t have to worry about it. Your balance will be adjusted, and you never have to worry about missing a payment.
2. Buy Only What You Need
Baby registries, baby stores, magazines, online articles, and those who mean well will suggest you purchase lots of things you don’t need to prepare for your first baby. It’s important to ignore those suggestions to keep from overspending on things you won’t even need. A baby really doesn’t need much in the way of material possessions. They won’t need baby furniture (just the basics!) or even the most expensive stroller. If someone buys you a stroller, perfect, but you can save money up front by waiting to make these big purchases. Just buy what you know you’ll need, things like diapers, wipes, bottles, etc. Why spend the money if you don’t need to?
3. Use Rewards-Based Credit Cards
When you do shop for essentials, make sure to use a credit card that rewards you for shopping! Specifically, choose a card with a cash back option. Skip the airline miles and go for cash! Every time you use the credit card, you earn a percentage back. You can use that cash later on toward your balance, helping you pay off the card quicker, and making those big purchases a little cheaper.
4. Avoid Adding More Debt
A new baby may seem like the perfect time to get a new credit card. But unless you’re swapping out an old card for one with cash back, just don’t do it. A new credit card will actually lower your credit score. Additionally, don’t give in to the temptation to get a cash advance from your credit card, either. These come with hefty interest rates.
The best way to avoid the need for more credit or a cash advance later is to start saving as soon as you know you have a baby on the way. Cut your expenses and start putting money into a savings account.
What to Do in Times There Just isn’t Enough
These money saving tips for parents will help you stay on track with your first baby, but if you do need a short term loan, consider contacting a trustworthy, local payday loan company like Money 4 You Payday Loans. At Money 4 You Payday Loans, we’ve been serving the Utah community for over 20 years. We started out as a small Mom and Pop operation with just one store in Sunset, Utah. We’ve kept that small-town, friendly business feel ever since, even as our success has pushed our business to heights. We’ve kept our rates the same since the first day our doors opened. Our rates are low to help you when you need us! To get started with payday loan process in Utah, give us a call today at 855-MY-MRMONEY.