Parenthood is a minefield in itself, but can also be a shock financially.

Nothing will quite prepare you for becoming a parent, but what you can prepare for is your family’s financial future, and we promise that it isn’t as daunting as it sounds!

So while you’re busy juggling outfit changes and running off of little to no sleep, here are our five tips on how to adjust financially after having a little one.

1. Budgeting! (No, really!)

With tap-and-go payments and online shopping on the rise, it’s easy to spend £5 here and £5 there, but that can cause your money to go down a lot quicker than you think.

Budgeting is a great way of keeping yourself in check, and it’s simple and easy to do.

Simply calculate your realistic monthly expenses (e.g. your utility bills, food, childcare, entertainment packages etc.) and then deduct them from your monthly income.

If after calculating you see that you’re in the minuses, then don’t panic! There are many ways to try and cut down costs.

Comparison sites are a great way to look for cheaper utility deals or car insurance, and you can make daily changes such as choosing to walk to the shops or making activities to do with your children around the house.

Once you whittle things down, you can then start to split your budget into spending and saving. Just remember that every pound you save helps, and a little can add up to a lot over time.

2. Save Smart

If you’re able to, putting money aside into your savings each month is a great step towards gaining financial security for you and your children in the future. However, it’s all about being realistic. So work out what best suits you.

When you start saving, aim to build up an emergency fund, and put it into an account that you can access easily. This could be a saviour if you ever lose your job or need to do some emergency work around your house (which is a bit too much to handle for new DIY dad’s and stops you from having to seek out high-interest loans!).

Saving can be a smart fallback plan.

3. Work Your Money

Did you know that the current rate of inflation is higher than a majority of interest rates on cash accounts? This means that leaving your saved money in an untouched bank account could actually decrease its value over time.

To get the most out of your savings, something you could do is invest some funds into the stock market to build up your savings over time.

It’s not for everyone, and the stock market is always fluctuating. However, if you are happy to commit your money into it for a minimum of 5 years, then you can give your investment time to grow, but also recover from any downfalls.

It is essential that you get investment right, so if you are ever unsure of what to do, seek the guidance of one of our financial advisors.

4. Think ahead for your children

Giving your child a financial head-start is a dream of every parent and with house prices continuing to rise, it’s becoming more pressing to think about building up financial savings for your little ones.

A great place to start would be opening up a Junior ISA account.

An ISA is an individual savings account that you do not have to pay tax on.

Research suggests that in the long term, shares could generate more investment growth than cash, helping you to reach your future financial goals quicker.

5. Prepare for the worst

It is important to take out life insurance to make sure that your family or any dependants are covered in the unfortunate case that something happens to you.

It’s not nice to think about, but taking the time to plan for it now reduces the chance of your family having to struggle financially if you get ill or pass away.

Life protection and income cover are just some of many numerous policies that you could take out to protect your family.

Consider consulting one of our financial advisors who will be able to guide you through finding the best protection plan for you and your budget.

So what now?

Taking control of your finances can be daunting, but putting the time in now is the best way to try and secure you and your family a steady and stable financial future.

It is important that you get it right, so why not contact one of our financial advisers today.

Coffey Brooks are a team of Independent Financial and Mortgage Advisers based in Clacton-On-Sea, Essex and are directly authorised and regulated by the Financial Conduct Authority.