How to manage the budget when you have kids


3rd Feb 2019
mummy and daughter

Having a baby is probably one of the most exciting milestones in anyone’s life, but without planning and managing the budget on a regular basis, you could end up with an undesired money challenge.

NerdWallet, a US-based financial comparison site, estimated that the cost of raising one child up to 18 years would be around AED 954,850 for food, housing, clothing, transportation, healthcare and health insurance.

Knowing how much you can spend on what each month will help you in managing your overall finances as a mom. Liv. Bank – the digital lifestyle banking app (or your ultimate financial buddy) is here to make your life easier with its features and offerings, including sharing money through social media, creating free saving accounts and accessing amazing offers. Follow our top tips below on how to avoid overspending as a mommy:

Find your own network of mommies

Almost each one of us has a relative, friend or colleague with parenting experience, use that for your own advantage. Don’t be too shy to ask them to share their experience, this will help you better with your overall planning and you will also find yourself learning from their mistakes along the way. If you cannot find the right person in your surroundings, you can always check around on different online platforms. And don’t forget, once you become the one with experience, share that with others as well.

Create a budget

To be able to ace the budget and planning, you need to understand the money coming in and going out. This needs to be reviewed regularly as your budget might vary from one month to another. Also, it is the right time to start understanding what you need to cut costs on to balance the budget.

Don’t overspend

It is very easy to get carried on with things, especially for your first newborn. Just remember, your baby shouldn’t be a fashion icon. It is no news that babies grow really fast, hence what they wear this week might not be fitting them the next. Don’t waste your money on clothes they won’t end up wearing (more than once). The best way to avoid overspending is by making use of all the offers out there. Liv. Bank has lots of amazing offers ranging from F&B to entertainment to wellbeing & shopping – all under one app.

Understand your savings goals

 Becoming a parent changes every aspect of your life, and especially your saving account. It is time to understand what exactly you are saving for and start working towards those different goals. It could be saving for your children’s education, a new car-seat, or your next summer vacation. Either way, finding the right saving accounts for your goals at an early stage will definitely make your life easier. Liv. has the ‘Goal Account’ feature which allows you to open as many saving accounts as you want.

Build a rainy-day fund

When you create your budget and get the hang of how to balance it, it is time to start building a fund for the future. This could be used for emergencies and unexpected incidents. As mentioned earlier, our ‘Goal Account’ feature does not only allow you to open several saving accounts, you can actually set your own rules, i.e. how much to save and how often etc. Another important factor to keep in mind is teaching your children about money and the importance of savings from an early age. Give them a place to store their pocket money and show them an exciting/ fun way of measuring their savings. It is only as fun as you make it for them.

Interested to learn more about Liv.? All you need is a smartphone, your Emirates ID and a valid UAE number to open your account. Download Liv. App now from the App Store or Play Store and start enjoying your parenthood journey like a financial pro!

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Liv. is the UAE’s first digital-only bank with a special focus on millennial customers, operated and managed by Emirates NBD Group. Established in line with UAE Vision 2021’s strategic objectives of creating a smart innovation-driven economy, Liv. offers a first-of-its-kind banking-meets-lifestyle experience, on a smartphone. Its unique features include instant account opening with #nopaperwork and real time access to insightful financial data and transaction history to empower customers to better manage their finances. Liv.’s proposition is supported by a group of partner brands, enabling it to offer customers a range of personalized lifestyle promotions and offers.

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To find out how we can support you, visit: Liv - Digital Lifestyle

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