Putting a figure on the cost of starting a family seems to vary greatly depending on what you’re reading. According to a survey taken by the US parenting resource website Babycenter.com, you’ll spend $10,000. The survey revealed that “forty percent of moms said that having a baby costs a lot more than they expected. And many told us that it’s the surprise bills that hurt the most. Even if you’re prepared to shell out for diapers, food, gear, clothes, toys, childcare, and healthcare, unexpected or “hidden” extras may bust your budget.”
A 2010 annual report by the UK’s largest friendly society LV= “reveals that parents are typically shelling out £9,610 a year to feed, clothe and educate each new member of their family.” Another report in The Guardian agreed that the cost of raising children is a much debated topic, and stated that “surveys regularly put the price of the first year alone in the thousands – although some manage to get started for far less.” The list of needs for a new baby varies and if you can do without or borrow, chances are you’ll be able to reduce the costs significantly.
Fighting the baby industry
A reporter at The Guardian, Hilary Osborne says it’s all nonsense. She refused to be sucked into the financial vortex of the baby industry that preys mercilessly on parental guilt. In fact, she even did her own survey and “kept all the receipts, recorded everything since his birth in June last year – and the truth is that you can give a baby everything he or she needs and keep the cost down to the hundreds rather than the thousands.”
In her efforts not to let the baby industry get the better of her, Hilary learned to use eBay, Freegle and Gumtree for all her essentials like buggys, high chairs and cots, “my Maclaren Quest pushchair was a bargain at £40 on eBay. I got an only-slightly worn version of a buggy that sells for £155 in John Lewis. My Mamas & Papas cot was £45 on Gumtree and looked as perfect as when the original owners shelled out £180 for it.” She bought toys and books from charity shops and used local library resources for activities and classes.
Hilary discovered that the hidden costs came from baby formula at £8 per tin, when she had to give up breastfeeding after 3 months. She says she was lucky that she received a lot of hand-me-down clothes from friends and family and even joined the baby discount clubs in all the major supermarkets to save on baby food, nappies and medical supplies. However, it’s the costs like running the washing machine more and being at home and consequently using up more electricity that has seen living costs jump since having the baby.
“In reality, babies can cost you nothing” Hilary continues, “since Wyn was born I’ve not been to the cinema or theatre once and can count the gigs I’ve been to on one hand. We’ve rarely eaten out and when we do it tends to be lunchtime or early evening, when, handily, restaurants are often offering deals. While I’ve been off work I’ve had time to cook, so we don’t spend on takeaways or ready meals.”
Managing income and employment
So can we all follow Hilary’s lead and survive those early years without blowing a huge hole in the nest egg? According to The Guardian’s Sandra Haurant, the real cost to starting a family comes from the loss of income. Most people rely on two incomes to pay rent or mortgage, bills and cover the over all cost of living. When a woman has a baby, that income is reduced. “Statutory maternity pay is usually 90% of your average pre-tax weekly earnings for the first six weeks, then the lower of £135.45 or 90% of your weekly pay for the following 33 weeks.” Despite government plans to introduce more flexible leave, the fact remains that most families are relying on a lot less income in that first year and after that, child care costs come into play. The report states, “it is on return to work that many parents feel the real financial impact of starting a family. According to the Daycare Trust, the average annual cost of childcare alone for a child under the age of two rose to £5,103 in 2012, based on 25 hours’ care a week.”
So while the actual costs of keeping a baby in food and clothes might not tally up to the thousands claimed by surveys, it seems the biggest costs come from dealing with the management of income and employment. It’s the loss of income – in some form or another – that makes up the biggest financial hurdle for new families.
The best way to manage this is to plan years ahead for the impending loss of income, or rather, learn in advance, how to live on less. Accept the fact that when you have a baby, your income will be significantly smaller. Consider not entering into a larger mortgage or getting a bigger car. Instead, save your money in preparation for the loss of wages. While this might only go so far, it will at least make the transition into family life a little easier. Once the children go to school, chances are mum and dad can once again start to build on their earnings.
To survive those early years, it’s not about getting ahead, it’s about staying afloat as you struggle to come to terms with the financial reality of becoming a parent.
A lifestyle journalist from Bristol, Kitty Hastings has many years of experience writing about home economics, parenting and health and how to balance your budget both inside and outside the house. She recommends Eccount Money, a leader in the field of companies specialising in helping people with debt. Kitty’s articles appear in a range of publications – and she loves nothing more than relaxing with a cup of tea and a great book and adores anything vintage.
