Are children as expensive as we think they are? New research from the Financial Services Compensation Scheme (FSCS) reveals that most of us overestimate the cost of babies’ fi rst year

WHILE it’s not something new dad Simon Cowell need lose any (additional)

sleep over, the cost of raising a child is at an all-time high: a staggering £148,000 is needed to support offspring from birth to 18, according to a recent report by Child Poverty Action Group. But while this sum sounds eye-watering, the average cost of bringing up a child for that all-important � rst year works out a more manageable £70 a month per couple and £82 for a single parent.

These calculations will come as a nice surprise to prospective parents because new research for the FSCS, which protects savings, reveals our expectations are signi� cantly worse – less than ten per cent believe it will cost less than £100 a month to raise a child for the � rst year of its life.

Indeed, FSCS research puts the average sum set aside each month by prospective parents at £234 – more than three times the basic cost as calculated by Child Poverty Action. For 58 per cent, this anticipated cost will be met using their current account, dictating a sharp change in disposable income and lifestyle. Unsurprisingly, saving money quickly becomes a big priority for parents-to-be,with 46 per cent of respondents placing it � rst.

Make your savings workA sense of increased � nancial burden can lead to elevated anxiety levels, which are felt much more keenly by � rst-time parents – 92 per cent believe they would need some or a great deal of savings, � gures that contrast with 18 per cent of existing

parents, who didn’t think they needed savings at all. With � nancial concern

common, Susanna Scott, author of A Modern Mother blog, welcomes the � ndings. ‘Hopefully this research will give

parents-to-be reassurance that their savings can go

much further than they imagined. There is proof that childcare costs do increase after the � rst year, when

many parents plan to go back to work – so those savings will not be wasted.’

Second-hand adviceAs the founder of Brit Mums blogging network, Scott is adamant even parents without savings shouldn’t lose sleep. ‘With a bit of shopping around, planning and advice, it’s de� nitely possible to have a baby on a budget,’ she says. ‘Don’t be pressured into buying too much equipment. Just because

something exists doesn’t mean you need it. I remember wondering if I needed a baby wipe warmer – of course I didn’t!’

As for those expensive must-have like a buggy, Scott has some words of warning.

‘At several hundred pounds, buying a buggy can feel as big an investment as a new car!’ she says. ‘Don’t think you need the most expensive model on the market – many mums actually � nd the cheaper, lighter buggies easier to

THE PRICE ISN’T RIGHTIt’s not all good news – while fi rst-time parents may overestimate how much babies cost in total, FSCS research shows they also consistently underestimate the price of essential new baby purchases

Ref: Average products on four websites – Kiddicare, Tesco Direct, Mothercare and Mamas & Papas. We ranked products by most popular, took the top ten prices recorded, added them up and found the average; the average prices across all four websites were then averaged to provide a fi nal sum

MOSES BASKETAnticipated cost: 44% think less than £50Actual cost: £54

HIGH CHAIRAnticipated cost: 34% think less than £50Actual cost: £105

COT & MATTRESSAnticipated cost: 45% think less than £100Actual cost: £176

PRAMAnticipated cost: 36% think less than £250Actual cost: £468

CHANGING UNITAnticipated cost: 73% think less than £100Actual cost: £245

BABY CAR SEATAnticipated cost: 58% think less than £100Actual cost: £133

HIGH CHAIRHIGH CHAIR

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SHUTTERSTOCK

LIFE&STYLE PROMOTION

in partnership with Financial Services Compensation Scheme

FSCS PROTECTS YOUR SAVINGSYou might be saving up to start a family – or you might be putting money aside for the children you’ve already got. Whatever you’re saving for, you can rest easy knowing your money is protected by the Financial Services Compensation Scheme (FSCS)

■ FSCS was set up by government and protects your savings up to £85,000 (up to £170,000 for joint savings).■ If your bank, building society or credit union goes bust, FSCS will compensate you up to that savings limit.■ It’s automatic and free, and in most cases, savings will be refunded within seven days.■ Your savings are protected in more than 900 banks, building societies or credit unions authorised by the Prudential Regulation Authority (PRA) – including all the big high-street names.■ Your savings might not be FSCS protected if you have more than the compensation limit in one account or across di� erent accounts or brands which share a banking authorisation.FSCS also protects investments, insurance and mortgages, with di� erent limits. Find more out at www.fscs.org.uk or call Freephone 0800 678 1100.

For more information, check fscs.org.uk/protected

use than pricey larger ones. And why buy new when you can get a great second-hand buggy from eBay, Craigslist or Gumtree?’

Second-hand is indeed a popular way to cut costs, with one third of parents opting not to buy a baby changing unit (31 per cent) and nearly a � fth (17 per cent) deciding against brand new nursery furniture, according to the research.

Scott approves of cutting the ‘baby bill’ wherever prudent. ‘Ask what friends and family with kids have hiding in their loft,’ she says. ‘Many will happily pass on clothes, toys and cots – often barely used. It’s not a good idea to use second-hand car seats or mattresses for safety reasons but most other items are absolutely � ne after a clean. Local NCT sales are another great way to save money as mums sell off lots of unwanted gear. Look online to � nd your nearest.’

Perhaps there’s less need to splurge a small fortune on that bundle of joy than you thought – unless you really are Simon Cowell, that is.

Cheaper than you think