Published at: 6/21/2016 3:28:59 PM
Some clever saving strategies can help your new arrival enjoy the best of everything.
Despite their tiny size, babies come with a man-sized list of needs - from cots and car seats through to nursery furniture and prams.
Part of the excitement of preparing for your baby’s arrival is shopping for all the bits and pieces you’ll need, and like all parents, you want the best for your child. In fact, aiming for quality can make good financial sense. Many mums and dads find that spending a bit extra can mean enjoying equipment that is more comfortable for your tiny tot as well as more durable.
The trouble is, it’s not always easy finding the cash to kit out your nursery. Following some clever strategies can mean you don’t have to settle for anything less than the best.
1. Grow personal savings
Aiming to build a pool of cash savings to pay for baby-related items is a smart move. You won’t have to rely on a credit card, and that’s important because the last thing you need when you head off on maternity/paternity leave is a mountain of high interest debt. Bear in mind too, retailers love cash, and paying with the folding stuff leaves you well-placed to negotiate a discount.
2. Start early
Don’t wait until you’re pregnancy is confirmed to start growing personal savings. Building savings from the time you start planning for a family can mean you need to save less each month to reach the same savings target.
3. Set a goal to work towards
Saving can be easier when we have a target to work towards. Make a list of baby items you’ll need, shop around online to compare prices and allocate a cost to each item. Add up the total, and work out what you should be saving on a regular basis to reach your target.
4. Avoid nice-but-not-necessary items
Many of the items your newborn needs will only be required for a relatively short period. Rather than winding up with a tonne of barely used gear, talk to friends and family to separate the must-haves from the non-essentials. Consider secondhand buys or hand-me-downs for baby clothing and maternity wear to further cut costs.
5. Save steady
Just as your baby bump will steadily grow, your maternity nest egg will also swell – especially if you look for opportunities to earn a higher return on your cash. When you open a ME EveryDay Transaction Account and make a weekly PayPass™ purchase, you could earn up to 3.20% p.a.* variable interest on your savings ongoing on balances up to $250,000 on your first ME Online Savings Account.^
There are no monthly account-keeping fees and no minimum balance or monthly deposit requirements and you can access your cash at any time without penalty, so you can save steady and start focusing on baby’s next exciting milestone well after they’re born.
Getting into the habit of saving on a regular basis isn’t just a sensible way to fund your baby needs. It’s also good practice for when you shift from two incomes to one – even if it’s only for a short period, following the birth of your baby.
things you should know.
*Variable interest rate is current as at 26-Mar-2017 and subject to change.
Online Savings Account (OSA) bonus interest terms and conditions
^To receive bonus interest on your OSA for any calendar month you must have a ME EveryDay Transaction Account (ETA) and during that month make a weekly purchase with your ETA debit MasterCardTM using PayPass Tap & Go. Bonus interest is only payable on balances up to $250,000 on your first OSA. Bonus interest is not payable on OSAs opened before 10/08/15. In any month we may without notice waive the requirement for you to meet all of these bonus interest conditions. We may change or withdraw the bonus interest offer at any time
Other important information
Terms, conditions, fees and charges apply. This is general information only and you should consider if these products are appropriate for you. Members Equity Bank Ltd. ABN 56 070 887 679.
MasterCard and the MasterCard brand mark are registered trademarks of MasterCard International Incorporated. Tap & Go and PayPass are trademarks of MasterCard International Incorporated.