Children aren’t cheap – it’s estimated that raising a child to the age of 18 costs a whopping £175,000. So if, like so many of us, you’ve decided to make the most expensive decision of your life and have a baby, how much of that money do you need up-front?
A mum on Mumsnet pondered that question exactly, by asking how much prospective parents should have saved up by the time their baby arrives. She acknowledged it’s something of a “how long is a piece of string” question – but was keen to know what answers she’d get back.
And they varied wildly, as you’d expect, up to and including “12 months of your income plus £1,000,” as one person wrote. Who has a whole year’s salary knocking about? If you managed to put a quarter of your pay away each month, which for most people is pretty difficult, this would still take four years to save.
Others had in-depth, detailed, meticulously broken-down plans: one parent said they budgeted for earning differences, a projected 10 sick days, initial purchases for the little one, and an increased heating bill. Some said a few grand. Others said a few hundred quid. Let’s be honest, there really is no one answer fits all approach, is there?
What this Mumsnet thread shouldn’t do is freak parents out. Babies don’t have to cost as much as a year’s salary plus £1,000, just to get you started.
There are lots of things to take into account when you’re about to have a baby, as I did 18 months ago when my daughter was first born: reduced income due to maternity/paternity leave; everything you want to have bought by the time the baby arrives; running costs, nappies, increased bills, and childcare costs.
The first one is the most dramatic immediate change. Statutory maternity pay is not a lot of money – 90% of your pre-tax average weekly earnings for the first six weeks, then either £145.18 or 90% of your average weekly earnings (whichever is lower) for the next 33.
This works out to the equivalent of £7,500 a year for those 33 weeks. Child benefit comes to about a thousand pounds a year, which might not be much when it comes to looking after a 10-year-old but pays for plenty of nappies. If your partner’s wage can cover rent for both of you – well, the three of you – you’re kind of okay. You might have to cut a few corners here and there.
Everyone likes the idea of bringing a baby home to a beautifully-decorated nursery where everything is bespoke, flawless and elegant (not to mention Instagrammable as hell), but the baby doesn’t care. They can barely see at the beginning. They’re not going to criticise your choices in décor.
“Babies don’t have to cost as much as a year’s salary plus £1,000, just to get you started."”
Of course there are some necessary big purchases – pram, car seat, crib – but you can do really well secondhand or stagger the purchases across the months of pregnancy. And yeah, you’re running the washing machine all the time, which isn’t cheap, and possibly spending more on heat and electricity, but you’re probably also not going out very much, if at all, so that evens out.
Baby clothes are an area where you can easily spend £3 or £100 on the same item. It’s not hard to get overexcited by a pair of adorably tiny dungarees and spend more than you would on a pair of grown-up jeans – if you’ve got the money, go for it, but if you don’t, just remember, your baby won’t even register.
Paying for childcare sucks, especially if you are doing so when not working. The cost (call it £1,200 a month for five days a week in nursery) certainly puts some mums off returning to work, but it does get better – the government’s tax-free childcare scheme helps you out a bit, and when your child turns three they get 30 free hours a week (find out more here).
And however much you save, there will be points when you wish you had more. There’s no magical sum that guarantees you an easy ride when it comes to raising a baby. Sure, if you had a million quid lying around when you had your child, that would make a lot of things easier, but if you don’t, you’ll be fine.
If you were doing okay before the baby, then barring any major incidents, odds are you’ll be doing okay afterwards. And as your child gets older and eats you out of house and home, outgrows expensive clothes every few weeks, costs a fortune to take on holiday and gets all surly, things might get harder – but by that point you’ve no choice in the matter. What joy!