Baby's and Beyond Volume 13 I Issue 2 | Page 3

How new parents spend money differently

Having a baby changes everything- including the way you spend your money. Here’ s how new parents’ spending priorities are likely to shift.

Life before children

As a couple without children, you might be fairly easygoing with your money. As long as you cover essentials like rent or bond repayments, petrol, food, and other necessities, there’ s usually room for a few luxuries without worrying too much about the financial fallout.

We’ re also not averse to being a little financially frivolous from time to time. Many of us justify purchases we know don’ t really make sense, such as expensive accessories or gadgets. These little treats can be a soothing way of compensating ourselves for the challenges we endure as adults.

The shift in priorities

This changes significantly when you have a child. Spending shifts from entertainment to education, food, housing, and often health-related expenses. In fact, 2023 research by MiWayLife revealed that parents should expect to budget around R100 000 per year per child, leaving far less room for luxury splurges.

Education

Education is one of the biggest concerns for parents. Given the uncertainty around whether traditional schooling models can fully prepare children for a rapidly changing world, many parents invest heavily in education. Private education, however, is often out of reach for many families.

And it’ s not just tuition fees. Extracurricular activities, uniforms, stationery, and saving for life after school all demand a significant portion of the household budget.

Food

Food is another expense that receives far more attention once children arrive. Before becoming parents, a large part of the food budget may have gone towards restaurant meals or takeaways. Once your baby starts eating solids, you have another mouth to feed. Parents often become more conscious about nutrition and are willing to spend more on healthier options.

As children grow older, parents’ lives become busier trying to juggle deadlines with their kids’ activities. Convenience overtakes quality – but it still comes with a price tag.

Housing

Housing also becomes a significant expense as parents look for safe and secure environments in which to raise their children. This could mean moving to a bigger house, a better neighbourhood, or closer to good schools, all of which usually come with higher costs.

Health-related expenses

Adding your little one as a dependant on your medical aid or upgrading to a more comprehensive plan becomes a priority, since your focus shifts to your child’ s well-being and security.

“ At Medihelp Medical Scheme, our data shows that once people become parents, they upgrade to a plan that includes benefits for children, such as visits to a paediatrician, cover for vaccinations, as well as guidance on the parenting journey. Medihelp supports new parents with access to a parenting app and bot with great content that help them navigate this new adventure,” says Lien Potgieter, head of Marketing at Medihelp.

Adjusting personal spending

Many parents become more intentional about budgeting, planning meals carefully, and cutting down on unnecessary expenses.

Although children grow out of their clothes quickly and require new wardrobes every few months, parents are less likely to update their own cupboards. We get used to spending less on ourselves and more on what our children need.

The change in spending habits brings with it a change in mindset that, hopefully, we will pass down to our children. If they see us thinking carefully about where and how we spend our money, they’ ll do the same.