Having a baby is the best reason to start saving: from newborn to 21, it’ll cost you £194,000.*
Starting a family means spending more money on all kinds of things you may not have thought of before. Here’s what you may need to save for to help you plan ahead.
The thrill of having a baby is priceless, but the alarming figures that are bandied around about how much children will cost may make you wonder how you can afford them. However, many of the biggest expenses come later in life, so you have time to save and plan for them.
“Babies are not so expensive in the very early days but as your child grows, the expense grows too,” says Laura Abbott, a lecturer in midwifery and mother of three. “To have some money saved can take the pressure off you and allow some independence. Money ultimately gives you more freedom to perhaps take more time off work or not go back if that is what you choose. It could also mean that you can take a holiday, something that many new parents find invaluable in the first year.”
Save for….
The first year
- Kitting out the baby: cot, high chair, buggy, car seat, clothes, toys.
- Day to day essentials such as nappies and wipes, baby foods.
- Childcare costs if you’re going back to work
Up to five years old
- Clothes and shoes.
- First bed.
- Possible second buggy.
- Childcare expenses.
- Toys, scooter, bikes
School years… and beyond
- Clothes and shoes, and possibly school uniform.
- Toys/birthday parties Childcare expenses.
- Private school fees (if relevant).
- Extra-curricular activities such as music or dance lessons, football training, swimming club.
- Holidays.
- School trips.
- Pocket money.
- Home PC and upgrades and accessories for homework and games.
- Mobile phone.
- Driving lessons and first car.
- University fees and support if children go on to further education.
- Gap-year travel (if relevant).
- Deposit on first home
That’s some list. It may seem daunting, but start saving now and you’ll be prepared for at least some of these costs. Find out more about saving for your child’s future by visiting our Child Trust Fund pages.
*According to research by the Liverpool Victoria friendly society, January 2009.
IMPORTANT NOTE: This feature is for guidance only and is not intended to be a substitute for professional financial advice.
