Expecting a baby is an exciting time, but many parents have questions about how much it actually costs so they can be in a better financial position before their child arrives. From childcare costs to the weekly spend on nappies, the money can really add up. 

On average, it costs £223,256 to raise a child until 18 years old which works out to about £12,400 a year. This figure will fluctuate depending on the specific needs of each family but with the right planning and financial manoeuvring, you can stay ahead of the curve. 

What To Budget For 

Budgeting to save money before your little one is born can seem stressful but the earlier you start, the more time you have to accumulate a nest egg. It helps to know what exactly you’re saving for in this situation, so you’re not left in the lurch when it comes to unexpected baby costs. 

Baby essentials that you will need from the off should be budgeted for well in advance. These include a car seat, clothing, nappies, formula and a pushchair. This will all have to be paid for alongside your monthly bills and fees. 

For those early days, new babies typically require cots, baby monitors, dummies and night lights. If you have an assigned nursery space, it will cost you to decorate it and baby-proof the room. 

Childcare costs often make up a large bulk of raising a child as they get older, especially if you have more than one child. On average, parents typically spend £270 a week for 50 hours of full-time care for a child under two in England and Wales. 

Maternity and Paternity Leave 

On top of everything you’re going to be buying, you need to factor in how your pay will change during maternity and paternity leave. Check your parental rights at work to see how much will be coming in and how long you are entitled to have off after the birth. 

Typically, statutory maternal leave lasts for 39 weeks and mothers receive 90% of their average weekly earnings for the first six weeks. This changes for the next 33 weeks but it is dependent on the company you work for. 

Paternity leave is a bit trickier and differs from employer to employer. Generally, as long as a father has been in their job for nine months, they qualify for two weeks of paternity leave at 90% percent of their average weekly earnings. 

In both cases, you should check with your HR department as every company has a different policy for parental leave. With this information, you can figure out how you can supplement any lost income or adjust your budget to accommodate losses.