The Money Advice Service has launched a ‘Baby Costs Calculator’ as new research reveals that
half of parents underestimate the cost of having a baby
The money advice service is an inderpednant organisation that gives free unbiased money advice across the UK – online, over the phone and face-to-face. The Service was set up by Government and is paid for by a statutory levy on the financial services industry
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.
Apart form my own brilliant and helpful book (ahem!) How to afford time off with your baby there are some other great resources out there, There is a Baby Costs Calculator online at moneyadviceservice.org.uk/parents. It is part of the Money Advice Service’s comprehensive ‘Parents’ Guide to Money’, which features a Baby Timeline and wealth of advice on topics ranging from benefits and entitlements to planning for childcare costs.
My top tip would always be face your finances full on and get advice where you need it. Money troubles NEVER go away be themselves and ALWAYS get worse if neglected.