The real monetary cost of raising a baby!

Well, first of all, I pestered a whole heap of different parents* to write me a list of the replenishable items that they buy each month for their little one(s) and then, with their help, I determined approximately how much of each item is required in an average month. Finally, a quick dash around the local supermarkets (Tesco/Asda) gave me some average prices:

New bottle teats (Pack of 4): £5.98
Branded Nappies (7 a day): £47.92
Branded Wipes (15 a day): £15.56
Infant Formula (900g x 3): £21.30
Bubble bath (1 x 500ml): £2.57
Shampoo (1 x 500ml): £1.96
Nappy Bags (10 a day): £3.56
Sudocreme (400g): £6.24
Liquid Parrafin (150ml): £1.29
Talcum powder: £0.87
Milton Sterilising Fluid (2x 500ml): £3.00
Replacement Dummies (x2): £2.68
New clothing: £98.00

TOTAL: £210.93

* Sampled panel of 57 parents living in the UK.

After hearing the whopping prices quoted by the media, I was pleasantly surprised by my monthly totals so far. Furthermore, I was very surprised to find that in the middle of a recession, all of my 57 parents had chosen to use branded nappies and wipes (all either Huggies or Pampers!) and branded bottle teats (primarily TommyTippee or Phillips Avent).

Just as a side note as well, you can see that the budget above includes a generous £98.00 a month for new clothing. Most of the parents I spoke to said that they spend much less than this, and that after the first few months the novelty of buying new baby outfits does eventually wear off - there's hope for us all yet! However, I decided to include this average cost anyway because it allows for the growth of baby and the cost of new outfits and sleepsuits! You'll be pleased to know that both George at Asda and Tesco were offering complete baby outfits from as little as £5 to £8.00 - Amazing value, and good quality too! (I was very tempted to buy some for the cute designs alone.)

Finally, you will notice I've included products such as shampoo and bubble bath. I seriously doubt that you'll use an entire bottle of each every single month, but the answers I got from my panel were just so varied that I thought it better to overestimate than underestimate.

I found it much more difficult to pinpoint average spends for the one-off purchases that new parents might make in advance of their little one's arrival. However, I gave it my best go in the same way as before (thank god for the Internet!) and these were my results:

Bath Supplies

Pack of 3 Bath Towels (hooded): £14.69
Pack of 4 Washcloths : £9.00
Infant bath tub: £20.00
Bath thermometer: £3.50

Feeding Supplies

High Chair: 26.99
Steriliser: £39.99
4 x Branded Bottles: £15.98
Breast Pump: £26.99
10 Pack of Bibs: £9.99

Sleep Essentials

Moses Basket: £29.39
Cot: £60.00
Cot Mattress: £30.00
2 x Bedding Sets: £97.50
Baby Monitor: £34.29

Travel Items
Infant car seat: £64.99
Pram: £249.99
Baby Carrier: £18.99

Other Items

2 x Safety Gate: £43.98
2 x Changing Mat: £12.99
Pack of 4 Dummies: £5.99
Baby Thermometer: £5.99
Nail Clippers: £2.99
Clothing: £250.00

TOTAL: £1074.22

You can see from my list above, that the one-off purchases are a lot higher than you'd hope, so you can see why a lot of people panic about being able to provide for their little ones. However, this list was still only two thirds that of the Government's estimated pre-birth costs. So, I set about talking to my panel of parents and thought about why this might be and drew the following conclusions:

1.) Parents who'd already had one child tended to spend less due to the fact that they were clearer about what they needed to buy and already had hand-me-downs.

2.) The amount my panel spent on prams varied from £129.99 through to £479.99

3.) Not everyone bought everything on the list. E.g. some people bought car seat OR pram and some people didn't buy baby carriers, baby baths or electric sterilisers.

I could easily see how you could spent £1500+ on preparing for the arrival of your baby, but thought that the figures to suggest that one in fifty parents spend more than £5800 were completely and totally over the top! Again, for the most part, the items in my list are not top of the range but are not the budget range either so there is a lot of room for the price to go up, but also some room for the price of preparation to come down!

Having analysed average costs of my panel's monthly and one-off spends I came to the conclusion that there was definitely room to cut back, and here are my top five tips for doing just that:

#1: Don't be afraid to try own brand products!

For example, if my parent panel had switched to Tesco's own brand nappies instead of using Pamper's or Huggies then they'd have saved approximately £17.71 each month. If they also switched to Tesco's own brand wipes, they'd save, on average, an additional £7.60. So, by changing just two products, there's a saving of £303.72 to be had each year! (That just about pays for Christmas! lol)

#2: Don't buy designer clothes!

Does it really matter if your 12 month old darling is wearing the height of fashion? Let's face it, most of the clothes you buy for your little one are going to be puked on by the end of the week. After spending some time viewing, testing and pricing up clothes in places like Primark, Tesco and George at Asda, I've found them to be of a fantastic quality and you can get:

- 7 pack of bodysuits for £4.00 (George at Asda)
- 5 pack of sleepsuits for £4.00 (George at Asda)
- Shoes/Sandals just £3.00 a pair (Tesco)
- 5 pairs of socks just £2.75 (Primark)

Plus, just because you're choosing to comprimise on price doesn't have to mean that you're comprising on trendiness, style or quality. Shop around!

#3: Look at the products you're going to buy!

Buying products on the Internet certainly can save you money, but i'd definitely recommend that you pop instore to check things out first. In fact, why not read some reviews too? After speaking to my panel, I found that many parents actually had to go out and buy products again after realising that they'd made a bad first choice. The worse culprit? Prams.

After getting their new prams home, or after their deliveries arrived, many of my parents found that their first option was just too bulky to go into their boot, too heavy to push comfortably, or too fiddly to be of much use. Make sure you thoroughly test these products as they're going to become a big part of your life.

Furthermore, although your ultimate game is to save money, this sometimes means its worth spending a little more! Make sure that the products you buy are going to last you, otherwise you'll find yourself splashing more cash in a few months time.

For example, if you're buying a car seat then why not buy one that will alter to accomodate your baby up to the age of four? If you're buying a pram then don't just focus on the one that's best for your newborn, look at how much weight it will hold when your baby grows too!

#4: Don't go mad with the clothing!

When you get your 'big fat positive', it can be all too tempting to just get out there and go mad - believe me, I was tempted just window shopping! However, you need to be realistic and you need to pace yourself.

a) If you buy too many clothes then your baby probably won't get a chance to wear them all before they've moved up to the next size.

b) Your baby won't need one outfit for each day of the month. I can assure you that its perfectly socially acceptable for your baby to be seen in the same thing twice, and you can even use a washing machine to remove the baby puke! *Gasp*

c) If you have an April baby then you might not need thousands of wooly items in a size 0-3 months!

and

d) If you have a big family, or hold a baby shower, you'll probably be inundated with baby gifts and the majority of these will be clothes! See what you get bought before you rush of to buy it yourself.

#5: When you see an item you like, ask yourself if you really need it.

- Yes, that playpen is fantastic. But, is your bump really going to run you ragged whilst you wash the dishes? You can probably wait another 18 months for that!

- Yes, that is a lovely stairgate. But, your two month old baby isn't going to climb out of the cot and crawl downstairs just yet.

- Yes, that is a wonderful bottle warmer. But, don't you already have a kettle and a jug?

Eventually, you'll get round to decorating your baby's nursery and from the mother's point of view I've been told that this can be one of the most frustrating and rewarding things you can do - it's also particularly important if you're adopting or if you've elected a surrogate mother as its part of "nesting".

Once you've burried your partner's body, if applicable, for saying "They both look nice," or "Does it matter?". Then you can expect to spend the following:

10 litres of coloured paint: £25.00
2 x Rolls of border: £15.00
Wallpaper paste: £2.95
Wardrobe: £100.00
Chest of Draws: £55.00
Changing station: £50
Paintings: £30.00
Other: £150.00

TOTAL: £377.95

Of course, this is once again an average cost and some of my panel decorated the room for as little as £150 and others racked up a cost of more than £600. I'm starting to get the opinion that things are only expensive if you want to splash your cash, don't know any better or can't be bothered to have a look around.

With the main expenses out of the way, I got down to business with the other (less thought about) costs and realised that this was another aspect that would vary wildly. For example:

Christmas

Some couples explained that they didn't tend to go all out until their baby had grown old enough to appreciate Christmas, and instead, bought their baby just a few main presents and then spent more throughout the year instead. Other parents told me that they would spend as much as £500 on their baby's first Christmas!

The average: the most common amount was around £100.00 to £150.00, then ever increasing amounts as their children got older. Good luck buying their first car for any less than £500, and insuring it for any less than £1,000!

Birthdays

Again, the majority of parents seemed to buy just one or two presents, but other parents admitted to going wild and spending as much as £150.00. Some parents preferred to just spend the day together with their child, whereas others invited family and friends, and their children.

The average: I found that most parents seemed to spend between £20 and £80 on a present for their little one, usually in the realm of clothing, toys or bedding.

Childcare

Childcare was probably the biggest cost for most of the parents that I spoken to, and again varied from around £100 per week to £300 per week with the most common figure being around the £150 per week marker. However, there are lots of free places available for under three year olds and many employers have childcare voucher schemes - hope isn't lost yet! Plus, the Government does have childcare payments available to the families that need them!

Find more information about affording to keep your little one next!

Well, the good news is that to help you afford the little life you've created, the Government has put in place some benefits. However, whilst some of these benefits are for everybody, others are just for people with a low monetary income. Do make sure that you check what you're entitled to!

Health in Pregnancy grant

If you have the right to reside in the UK, are more than twenty-five weeks pregnant and have been receiving health care from a doctor or midwife, then chances are you'll qualify for the Health in Pregnancy grant. This is a new initiative that provides soon-to-be-mums with a one-off payment of £190 per pregnancy (Note: Not per foetus) in order to help you afford things like fruit, vegetables, vitamins etc throughout your pregnancy. It is paid directly into your bank account.

SureStart Maternity grant

The SureStart Maternity grant is for people who are expecting a child within the next eleven weeks (or who have given birth in the last three months) and who have been in reciept of benefits such as Income Support or Job Seeker's Allowance. It is paid directly into your bank account and you will receive £500 per pregnancy.

Chid Tax Credits/Working Tax Credits

If you are on a low income then its definitely worth checking out how much you may be entitled to as the majority of families with a child are entitled to between £40 and £80 each week. A low income is considered to be £16,040. However, its still worth checking if you're earning less than £50,000 as you may be entitled to help with your childcare costs.

Child Benefit

You will receive £20 a week for your first child, and £13.20 a week for each subsequent child, in child benefits. This is paid directly into your bank account every four weeks and is paid until your child reaches sixteen, or eighteen if your child stays in education.

Child Trust Fund

If you are in receipt of Child Benefit then you will be given a voucher of £250 to put into a trust fund account, which can be accessed by your child when he/she reaches eighteen. A further payment will be made when your child reaches the age of seven, and you might be entitled to additional money if your child has a disability.

Healthy Start vouchers

If you are in receipt of Income Support, Income based jobseeker's allowance or Child Tax Credit with an annual family income of less than £16,040 and you are pregnant or have a child under the age of four then you will be entitled to Healthy Start vouchers. This is £3.10 a week whilst pregnant, £6.20 a week whilst you have a baby under the age of one and £3.10 a week when you have a child between the ages of one and four years old.

Statutory Maternity Pay/Maternity Allowance

Don't forget that if you've been working, then you should qualify for either Statutory Maternity Pay or Maternity Allowance for approximately 39 weeks, and this can start as early as 11 weeks before your baby's due date.

If you need more information on benefits then please check out the benefit guide at Bump and Beyond.

After having looked at all of the facts and figures, its time to present my conclusion. However, before I do that, i'm going to work out what my estimated cost to raise a newborn baby to the age of five would actually be:

Monthly cost x 60 months: £12,655.80
Purchases before the birth: £1,074
5 x Christmas' at £200 each: £1,000
5 x Birthdays at £100 each: £500
Decorating the nursery: £377.95

TOTAL COST: £15,607.00 (without childcare)

Now, I don't know about you, but I struggle to think of anything that would take our figure to the £40,000 that the Government's figures (as published in the media) suggest we actually spend. Even as a woman who buys clothing, shoes and handbags, I don't think i'd manage to run up the extra bill of £406.65 a month, which would be required to reach £40,000 in five years, on clothing!

Remember, the Government's figures haven't included childcare.

Furthermore, the Government actually gives families money for having a child. Every British family is guaranteed an extra £5,200 in Child Benefit for having their first child and raising him or her to the age of five and the majority of households will get at least £10,400 in Tax Credits over the course a five year period.

Therefore, the 'real' cost of having a baby is equal to my estimated cost minus the amount that every household is given in Child Benefits:

£15,607.00 - £5,200 = £10,407 over five years.

And, for families that qualify for tax credits aswell, their 'real' cost of having a ababy is equal to my estimated cost minus the total amount of benefits:

££15,607.00 - £15,600 = Just £7.00 over five years!!

Therefore, for the aveage person it doesn't seem to cost anywhere near as much as the Government would suggest. However, when we take into account the cost of childcare (which the Government conveniently forgot), we can expect to pay out:

An average of £150 a week for 50 weeks of the year, for five years = £37,500!

Conclusion, if you can afford to pay the £3,125 a year to go back to work and pay the rest of your bills then go for it. Otherwise you need to have one of the following:

- A husband that will work on your behalf.
- Grandparents that REALLY enjoy babysitting
or
- Contraception.