Having a baby can be expensive and it is very easy to spend more than you intend. The Money Advice Service have an online calculator to help you keep your spending under control.
New research from the Money Advice Service reveals that millions of parents are missing the mark when it comes to the money side of planning for a baby. Half (50%) of the parents surveyed underestimated how much they would spend preparing and caring for their first baby in its first year.
The research, conducted among 1,000 parents with children under 10 years old, revealed that of those who underestimated how much they would need to spend, six out of ten (61%) spent up to £1,000 more than they expected to, and a fifth (22%) were hit with between £1,000 and £5,000 in unexpected costs.
It seems that many expectant parents don’t factor money into their planning at all. A third (33%) of the parents surveyed chose not to seek money advice before having their first baby, preferring to let things pan out on their own, while almost a fifth (17%) didn’t even think about the money side of things.
And it’s not just first-time parents who aren’t seeking the advice they need – over two-fifths (42%) of parents say they still wouldn’t know where to go for money advice if planning to have another child.
The Money Advice Service released these findings as it launched the ‘Baby Costs Calculator’, a free tool that helps parents calculate how much they will need to spend on their baby in its first year. The new online calculator is part of the Service’s comprehensive Parent’s Guide to Money.
The Calculator shows costs (excluding childcare) scaled to three different budget levels ranging from £1,600 to £3,700 or up to £7,200. The Parent’s Guide to Money also features a Baby Timeline and advice on topics ranging from benefits and entitlements to planning for childcare costs.
Sarah Smith, consumer expert at the Money Advice Service, said:
“Everyone knows that having a baby is expensive, but without a clear picture of how much you’ll actually need to spend, it’s difficult to prepare properly. We’ve created our new Baby Costs Calculator to help parents, whatever their budget or level of experience, get a clear idea of the costs involved and make sure they’re as ready as they can be before their new arrival. As well as advice on essential costs, our simple new tool contains a range of other useful resources to help parents make the most of their money during this exciting but sometimes stressful time in their lives.”
The baby cost calculator can be found online on the Money Advice Centre website.
Posted by Clare Kersey