Starting a family is an exciting time, but it can also be expensive. From kitting out your new baby’s nursery to childcare costs, it all adds up.

No surprise then that a question often asked by parents-to-be is, ‘how much should I save before having a baby?’ The truth is, there’s no magic number but there are things you SHOULD have in place to protect your family's financial stability both now and in the future. 

If you’ve just found out you’re pregnant, or you’re thinking of trying for a baby, personal finance expert Claire Walsh says: 

‘This is a great time to review your finances ahead of having a baby when you probably won’t have the time or head-space.’

Here are Claire’s top tips for baby-proofing your finances.

1. Take out life insurance

None of us want to think about when we’re no longer around. But with a baby on the way, you’ll want to make sure that if the worst were to happen, they’d be financially secure.

‘Life insurance provides money if you die to help loved ones and becomes incredibly important when you have children’, says Claire. ‘If one parent dies it isn’t just the immediate costs, but also the longer term costs that you might want to think about, like your child going to university.’

According to Bequest, an online life insurance provider, only around 30% of UK adults have life insurance. This means if you or your partner were to die, your family may be left financially vulnerable without that extra salary.

At Bequest you can buy life insurance online in less than 10 minutes. There are no medicals or GP reports needed: simply apply online and if your application is approved, you’ll have cover in the time it takes to make (and drink!) a cuppa. There are a range of life insurance options to you can choose from to fit your needs, including level or decreasing cover and joint life or single life policies.

Depending on your age, you can be covered for up to 40 years (you can cancel it at any time), and you can also change it if you have any major life events like more children or a bigger mortgage to cover. There’s also a free live Grief Chat service, where you can talk directly to a specially trained bereavement counsellor.

2. Give yourself a financial health check

When you’re TTC or pregnant, you quickly become an expert on your physical health: from knowing exactly when you ovulate through to how big your growing baby is week-to-week.

Yet it’s also a great time to focus on your financial health. To do this, Claire recommends looking at your bank accounts and credit cards and asking yourself if you really need them all. She adds:

‘Check your bank accounts, credit cards, other debts, insurances – in other words, get all of your products together and check whether you still need them and whether you can streamline to make life easier.  

‘For example if you’ve opened accounts or have credit cards because there was a good deal but now you don’t need it, look to get rid of them  Also check you’re not paying double for things. Many bank accounts offer things like free travel and mobile phone insurance so make sure you’re not paying twice for the same benefits.’

3. Check your benefits 

There’s all sorts of financial help available, and knowing what you’re entitled to is another key way to prepare for a new member of the family. Here’s a handy list of the benefits you might be able to claim, including the Sure Start Maternity Grant. You’re also entitled to free prescriptions and dentist visits when you’re pregnant.

Claire adds:

‘If you haven’t already, check your maternity and paternity pay. And find out what benefits you have through work as many employers offer additional benefits to parents.’

If you’re not entitled to Statutory Maternity Pay you might be able to claim Maternity Allowance.

4. Set a budget

Nappies, pram, cot, toys … the list of things you need for your new baby is looooong. And while this can feel overwhelming at first, Claire suggests writing down exactly what you’ll need to buy and then looking for ways to cut back in other areas.

‘Plan a budget for your baby’s first year’, she says. ‘If you’re thinking about childcare, look into this and factor in those costs too.’

Citizens Advice has a free budget planner you can use to work out what you’re spending – or about to spend – and where you can make savings. 

5. Have an emergency savings fund

Everyone’s finances are different but, if you can, Claire recommends putting aside a little bit of money each month.

‘As a general rule of thumb try to keep enough in cash savings to cover 3-6 months living costs’, she says. ‘This can then be drawn on for emergencies without the need to go into debt.’

Try this savvy mum’s clever savings trick which could help you save £800 a year.

6. Write a Will  

Another way to keep your family financially safe in the future is by having a Will in place. 

 ‘This is not just about ensuring that your money goes to the right people’, says Claire. ‘Should something happen to both parents it’s also important to nominate guardians who would take responsibility for your children's care until they are adults.’

Bequest offer free Wills, meaning you can set out who will be your baby’s legal guardian if you were to die and who will inherit your money and belongings. And if you buy a Bequest Life policy, they’ll upgrade your free Will to a free Premium Will. Find out more here.