Parents caught out by baby costs - Turn2us

New research from the Money Advice Service reveals that millions of parents are underestimating the costs of having a baby. The independent advisory organisation has launched a Baby Costs Calculator, a free tool to help parents calculate how much they will need to spend in their baby's first year.

The study, conducted among 1,000 parents with children under 10 years old, revealed that of those who underestimated how much much they would need to spend:

• 50% underestimated how much they would spend preparing and caring for their first baby in its first year
• 61% spent up to £1,000 more than they expected to
• 22% had unexpected costs of between £1,000-£5,000
• 33% chose not to seek money advice before having their first baby
• 17% didn't even think about the financial costs.

The new free, online Baby Costs Calculator helps shows costs (excluding childcare) scaled to three different budget levels:

• Money is tight right now
• Show me some average costs
• No expense spared.

Use the Money Advice Service Baby Costs Calculator (link opens in a new window)

Source: Money Advice Service (link opens in a new window)