Budgeting for a baby

Monday 5th December 2022

Babies might be small, but they need a lot of stuff! They grow quickly, which can mean a whole wardrobe change every few months. And, don’t forget, they’ll be sticking around for a while! So you’ll have at least 18 years of costs and expenses that grow with them. Before you know it, they’ll be looking for the latest phone or even angling for a car...For now though, you’ll only need a car seat. Plus a pram. Cot. Changing table. Clothes… See how quickly it escalates! And that’s just the tip of the iceberg. Having a baby can be the most exciting time of your life. It can also be the most expensive! It doesn’t have to be though. With a little thought and some smart budgeting, you can make some savvy savings.

How much does a baby cost?
It’s all too easy to get carried away with the cute stuff! Some UK sources report people spending anywhere between £6,000 and £12,000 in a baby’s first year.

Child Poverty Action Group’s ‘Cost of a Child’ report estimates the cost of raising a child until the age of 18 is £71,611 for a couple and £97,862 for a lone-parent family. If you also have childcare costs, that bill can be as high as £185,413.

In the first month alone, you can expect to spend around £500. MyVoucherCodes have worked that out as:
- £23.52 on nappies
- £243 on clothing
- £53.51 on feeding equipment
- £183.51 on things like toys and furniture
…and 64% of those asked said they weren’t prepared for that spending. The good news is that there are a few ways you can keep those costs down…
What are baby essentials and what aren't?

There are so many nice things you can buy for babies it can be difficult to know when to stop! But if you can resist all that cuteness, you’ll be doing your bank balance a favour. Don’t forget, babies go through growing stages quickly so some items you’ll only need for a short period.

If you’re money conscious, think value for money first and foremost.

Cot or cot bed – for safe and comfortable sleeping.

Bedding and blankets – pillows and duvets are not safe for small babies.

Baby clothes – a week’s worth of stretch suits and baby vests are essential. Cardigans and clothes for layering are recommended. ‘going out’ clothes are a nice to have but not essential. If the weather’s cold, you’ll also need a hat and mittens.

Sterilising or feeding equipment – If you’re bottle feeding, you’ll need to keep everything sterile.

Pram or pushchair - to choose a suitable model, think about where you’ll be going and whether you’re using the car or public transport. New babies need a fully reclining pram or pushchair so that they can lie flat.

Car seat – if you have a car, a car seat is a legal requirement.

Travel systems can be a good investment as they have a car seat and can grow with your baby’s changing needs.
How can I work out my budget?

Your baby budget will depend on your income and other outgoings. Working out what it is means you can stay within it and not get into debt with a new baby.

The most important thing to factor in is how your income might change. If you can take advantage of full maternity and/or paternity leave with pay, that makes life a whole lot easier. If not, or you want to take more time off work without full pay, it’s time to plan ahead.

Use this baby costs calculator to work out your baby budget

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What help can I get?
Knowing what you’ve got coming in is essential to planning your parental leave – and being able to afford it. If you’re working, you will most likely be entitled to maternity or paternity pay. Lots of employers offer enhanced maternity terms and conditions above the statutory payments on offer.

Maternity Leave

According to gov.uk, eligible employees can take up to 52 weeks’ maternity leave. The first 26 weeks is known as ‘Ordinary Maternity Leave’, the last 26 weeks as ‘Additional Maternity Leave’.

The earliest that leave can be taken is 11 weeks before the expected week of childbirth, unless the baby is born early.
- You’ll get £156.66 a week or 90% of your average weekly earnings (whichever is less) for 39 weeks if you’re employed or have recently stopped working.
- You can get Maternity Allowance for up to 39 weeks. This means if you take the full 52 weeks Statutory Maternity Leave, your final 13 weeks will be unpaid.
Self-Employed

You can get between £27 to £156.66 a week for 39 weeks if you're self-employed. How much you get depends on how many Class 2 National Insurance contributions you've made in the 66 weeks before your baby is due. Find out more about maternity leave and your entitlement here .

Paternity Leave

If you’re employed, you may be entitled to two weeks paid time off – find out more here.

The statutory weekly rate of Paternity Pay is £156.66, or 90% of your average weekly earnings (whichever is lower). Any money you get is paid in the same way as your wages, for example monthly or weekly. Tax and National Insurance will be deducted.

If you’re self-employed, the bad news is you’re not entitled to a statutory paternity payment. The good news on the other hand is that, if you can afford it, you can take as much time as you like. That’s why a little financial planning can go a long way!

Plus, if you’re self-employed, you may be due a tax refund which would go a long way to helping you take care of the cost of a baby – find out more in out Tips & Tricks section below. Focus on the due date and put plans in place to help manage your work – and your cash flow. Babies don’t always play ball when it comes to dates and times, so you’ll also need to be flexible.
Money saving tips & tricks
Planning for a baby includes considering how you’ll pay for the things you need, and also affording the time to enjoy this very special moment in your family’s life.

And the time to do that is before baby gets here. If you haven’t already, use the free baby costs calculator above to work out your baby budget. Once you have a good idea of your budget, you can begin to allocate it. That means being savvy with all of your spending. And for spending read saving…
1. Get your house in order
Decorating a nursery can wait! Take a little time to check your household bills, making sure you’re on the right tariff, and see where you can save on groceries. Having another mouth to feed is another good reason to be smart about your supermarket shop. Use comparison sites to get a better deal and think about those subscriptions – there may be a few you can cut back on.
1. Think about breastfeeding
It’s your choice, of course, but it’s worth considering that breastfeeding is pretty much free! There’s no expensive formula or feeding equipment to buy. Breastfeeding even for the first few months will save you money at an expensive time.
1. Try reusable nappies
Yes disposables are super handy but they’re also super expensive! Reusables are still more cost-effective when you count in the costs of washing and drying. And disposables are terrible for the environment. Do the world and your bank balance a favour and find out more from the nappy experts online – there’s lots of advice out there on the best brands for you.
1. Ask family and friends
Perhaps your best source of second-hand goods, family and friends are often incredibly generous when it comes to passing on or selling you the essentials for a good price. Another advantage is that you’ll know the equipment has been well looked after.
1. Use Facebook Marketplace
A lot of baby equipment only gets used for a short amount of time so is often in really good nick when a baby outgrows it. Check Facebook or other similar local sites for items such as car seats and clothing bundles.
1. Find your local parents’ groups
They know where the good, free and discounted stuff is AND of course you’ll meet lots of new friends who can share support, hints and tips about raising a family.
1. Hit the sales
The big supermarkets often have baby events when they offer bulk buy special deals. And you’ll also find that when new stock comes in, last season’s stuff gets discounted. Fashion changes quickly too so when a new trend comes around, there are bargains to be had.
1. Let friends and family buy the toys
That’s what they’re for! Especially at birthdays and Christmas. Very young babies won’t need too much stimulation so don’t get carried away with all the bells and whistles.
1. Shop around
Use price comparison sites. Check prices online and in store. Use discount codes.

Search Bumdeal for the best priced nappies for your baby, right now.
1. Have a clear out
You can boost your budget – and clear space in your house – by reselling old toys and baby equipment. When your child outgrows a car seat, for example, unless you’re keeping it for the next one (!), think about passing it on or putting it on Facebook – it’s free!
1. Find out if you’re due a tax refund
Would a tax refund help?

An average 4-year tax refund from RIFT comes in at around £3,000. That could be enough to help you take unpaid time from work, make sure the mortgage is paid or help you get through baby’s expensive first year.

2 out of 3 people don’t know they qualify for a tax refund – check if you do by answering 4 quick questions and start your claim for FREE here.