Thanks to the threatened Mayan Apocalypse and the phenomenon of Fifty Shades of Grey, the country expecting a baby boom in 2013 the number of estimated births is the highest since the 1970’s. Raising a child from baby to adult is not only emotionally challenging but can be financially challenging as well, so are we really ready for the hurdles that lie ahead? If would-be parents considered the financial implications of having a child many would probably remain childless, as the average cost of raising a child until it is 21 is over £220,000. As any parent with older children will agree, the bills don’t stop at 21!
Around a quarter of first time parents admit they have financial difficulties after the birth of their child and around two thirds of parents turn to loans and credit cards to prepare for their newborn. Planning and saving for your baby could make these wonderful years a lot easier to manage, and our infographic will hopefully have some ideas new parents and parents-to-be will find useful.
With costs rising every year a parent’s first step should be starting a financial plan and making use of government schemes such as Junior ISA’s. First-time parents tend to go overboard when preparing for a newborn, spending an average of £1,786. Baby items can be quite pricey, with a very short lifespan, so consider purchasing nusery equipment second-hand. It is possible to make considerable savings this way, and there are various websites and auction sites advertising just about everything a baby could need. Always be certain to make sure items such as car seats comply with the latest safety standards and check out buying guides and in-depth reviews to help make the right decisions.
Whatever the financial decisions you make, planning early and getting into the savings habit should help reduce some of the worries of later years.