Learning that you are expecting a baby or adopting a baby is an exciting time! However, as you look through all the glossy magazines, and websites you may feel slightly overwhelmed with the extra costs that will soon be approaching. You may be worrying about how to financially prepare for a baby. According to data from Moneyfarm, the average cost of raising a child to age 18 is £202,660 in the UK, which is about £11,250 a year, or £938 a month. This includes housing and childcare.
[Photo by Renáta-Adrienn on Unsplash]
However, don’t panic. I remember that when our daughter was born, a report was published that said couples were spending, on average, £5000 to create a Nursery for their new born baby… We spent less than £250 and that was for a new cot and a new car seat… everything else was given to us! So don’t fret, read on to find out more!
You MAY need to invest a little in newborn gear and essentials. However, if you don’t mind pre-loved items for your new born baby, then I doubt very much that you’ll be spending thousands.
The positive side is that having a baby in the UK won't hit your wallet, thanks to the NHS offering free healthcare for expectant mothers, delivery, and postnatal care.
How to financially prepare for a baby
Some of the costs to consider when looking after a baby include:
Baby Gear
From pushchairs to car seats to cots, you'll need to buy some essentials for your new little one. According to Babies & Children, a baby car seat and pushchair combo usually costs around £300, and furniture like a changing table and cot totals about £290.
However, do look out for community groups and ask around for pre-loved items. It’s always amazing what you can pick up!
Nappies and Wipes
Depending on how big your baby is, you might be changing 8 to 10 nappies a day. At an average of 14.6 pence per nappy, that's roughly £11.2 per month. If you buy in bulk or go the reusable route, you can cut that cost big time.
There are many companies that offer reusable nappies, including Little LoveBum, Kit & Kin and Mama Bamboo plus many more! Be sure to shop around for special offers and discounts!
Feeding
If you're using formula, it can be costly. The whole package, including sterilsing gear and bottles, usually runs between £50 and £100. Breastfeeding? You might need extras like nursing pads or a breast pump, setting you back anywhere from £25 to £500, depending on what you choose.
Personally, if you can breastfeed, then do! It is a lot cheaper and research shows that it’s better for your baby too!
Clothes and basics
Babies grow like mad, so you'll be swapping out clothes often. You don't have to break the bank—hand-me-downs are a great, cheap option. I asked friends with older children if we could have their hand-me-downs. It saved us thousands of pounds, plus, if they get dirty or muddy or painty, you don’t mind at all!
Childcare
Childcare is your biggest outgoing in the baby budget, as childcare costs about £269.86 per week for a full-time nursery place.
We had a local childminder for our daughter, and this was a cheaper alternative for us. Go to Find a Registered Childminder on the UK Gov website to see if there’s a childminder near you. Don’t leave this too late, I highly recommend that you search for childminders soon after your 12 week scan as many childminders have waiting lists!
[Photo by Renáta-Adrienn on Unsplash]
Baby Budget
Making a baby budget will help you get a realistic idea of how much money you and your partner will be spending in preparation for your little one. It will also help you see how much you can expect to spend on a month-to-month basis once your baby has arrived.
How do I budget for my baby?
- Take a close look at your current finances
If you don’t budget, then now may be a good time to start! When you budget, you are able to see the big picture of where your money is going.
Before you start to budget, I always recommend that you record everything you spend for at least one week, but one month would be better, so that you have a good understanding of where your money is currently going.
Check out my blog on why budgeting is essential, warning, creating a budget and working towards money goals can be addictive - in a good way!
You can also check out my super, simple Excel Spreadsheet which is great for people who are just starting on their budgeting journey!
Once you have created a budget, you’ll be able to see if you can set any money aside. Although you may not have decided what this money could be for, it would be great to have a buffer for the unexpected things!
- Decide what to include in your baby budget
I always remember a friend saying to me, that a baby is a license to print money. She wasn’t wrong there! There are so many gorgeous websites and shops out there that sell you the idea that you need everything new and the Nursery needs to be designer. Wrong. All I recommend you need is a new cot and a new car seat. Everything else can be pre-loved.
Of course, if you have the budget to get everything brand new, then go for your life and enjoy shopping!
- Find out what financial support you're entitled to
In the UK, we are very blessed with financial support from the government. Look on the UK Gov website for more information or ask your friends and at your Health Clinic too!
Having a baby is definitely not cheap but if you are wise and frugal with your cash, there’s no need to break the bank!
This is a guest post written by Karen Hackman, Founder of Money and Marriage.
"I am a finance coach because I want to help couples get on the same financial page and win with money. In the early days of our marriage, my husband and I did not have a good handle on our finances and everything felt like a mess. But once we started talking about money and budgeting together, everything changed for the better. Getting control of our finances, created a ripple effect of positivity in our marriage. Now, I want to help couples feel more in control of their money too! I meet with clients virtually to help them manage their money together."
You can reach out to Karen via: Instagram / Twitter / Facebook / Website - Karen also has a FREE Ebook, How To Get On The Same Financial Page As Your Spouse’ Visit her website for more details.
You may also be interested in this post: Top 5 reasons why you should secure family life insurance.
There's so much financial preparation to make when you're about to have a baby! There are so many things to take into consideration before the baby is born/adopted x
Lucy | http://www.lucymary.co.uk
I was definitely nervous about finances when I got pregnant! I purchased a lot from Amazon, repurposed other bits from around the house and spread out purchases over the months. Codey is nearly 9 months old and still sleeps in my room, but I felt rushed to have it ready for his arrival x
Budgeting is everything when it comes to babies! I love your tips, they're super helpful!
Rosie
Babies are so expensive but I definitely feel like my spending was more beneficial with my second once I knew what I’d actually use! X