Guest Post from James Barnett, writer on behalf of Cooper Matthews focusing research on the analysis of contemporary wealth management for families across the UK.

No one wishes to be a wet blanket when celebrating the euphoric moment of welcoming a child into the family and presiding over one of life’s most precious moments and incredible experiences, but it would be naïve to bypass the financial impact of looking after a new born child and the significant financial preparation required to ensure you can effectively look after your family. The most common expenses for a child that spring to mind are the pram, nappies, milk and food costs whilst the expenses actually extend well beyond the cost of baby proofing your house and accommodating another room, particularly significant in rental accommodation.

The general keys to avoiding new baby debt originates from stringent planning and a sensible mind frame regarding sustainable investments and necessary outgoings, as well as this a budget can go a long way to making your life easier and new baby debt can be avoidable within contemporary financial management. Here’s a summary of the best tips.

Childcare Schemes –Comprehensive research of the marketplace and location of your child care center should enable you to plan ahead to the best available option. In times of hardship don’t be afraid to ask close relatives and family to help you out whilst a babysitter can also be a good economic alternative for when you need to pop out an complete life’s tasks.

Financial Management – Forecasting, budgeting and monitoring incomings and outgoings is absolutely necessary prior to your baby’s arrival. The key is to plan ahead prior to your child being born, putting aside savings and money to buy the basic necessities and provide a contingency fund for when times go wrong. When times are tough it is unwise to react quickly into acquiring credit card and finance as interest in the long run may harm your financial competence, instead explore other finance opportunities available and remember to use the government schemes and tax credits effectively.

Unnecessary Expenses – Fashionable baby clothes are unfortunately a no no for the wise budgeter as your child’s growth is fast and they are unlikely to appreciate the same fashion trends as you. It is a good idea to grow fruit and vegetable in your garden as this is not only healthy for the child but also offers a great alternative to the dependence on supermarket products.

Budgeting at 10% – A pre-planned budget should accommodate 10% on top of your calculated outgoings, as this contingency net will become a savior when called upon.  Back up funds are much more household friendly then seeking short term financial solutions.

Maternity Leave – Internal policies vary from company to company and changes between international borders although it leave is entitled under UK law. Make sure your thoroughly research your own situation and retain your income during the pregnancy, ensuring you don’t overspend during your time off. Managing your employment prior to your departure could effectively ensure you still retain a high level of career progression upon your return, whilst returning to a debt free business is also advisable. Job security will help your time during pregnancy as you can be relaxed and prepared.

Lifestyle Choices – Disposable income is often at its highest level at a couples point before their first baby and family life really begins. At this time it is wise to meticulously plan and implement successful lifestyle choices in advance that can benefit your child. Niche products in particular should make way for sustainable initiatives.