Having children

They may look sweet and innocent but adding a gurgling little bundle of joy to your family will cost you a small fortune.

According to one survey, the average cost of bringing up baby is £27,615 in the first three years alone – with more than £4,000 spent before birth*. A second report shows that parents can expect to fork out a massive £193,772 by the time their child is 21, with childcare and education coming in at more than £50,000 each**.

See how you can save money Before the arrival, on Equipment, Clothing, Baby food, Toiletries and medicine, Toys and games, Education and Sport and hobbies.

These are the main expenses you can expect:

• Baby clothes
• Maternity clothes for mum
• Baby food
• Medicines
• Toiletries
• Nappies
• Cot, mattress, bedding
• Buggy, car seat
• Safety gate, fireguard, cupboard locks
• Bath, breast-pump, bottles, steriliser
• Toys and games
• Childcare
• Pocket money
• Babysitting
• School and university fees
• School uniforms
• School trips
• Sports and hobbies
• School books and equipment

* The Baby Budget 2009, from social networking site Gurgle.com
** Cost of a Child survey 2009, from insurance and investment group LV=

Before the arrival

• The expenses begin before the baby arrives, so the earlier you start your financial planning the better. Kick off by opening a savings account and try to put something aside every month.
• Many websites will help you to make financial plans, or talk to a financial adviser or your bank for professional advice.
• Decide which Child Trust Fund account is best – the government gives £250 to all new babies, with a further instalment when they turn seven.
• Check with your employer if you are entitled to any extra benefits, such as childcare vouchers or a maternity bonus. You may also be able to take advantage of flexible working arrangements to ease your finances after the birth – for example working a few hours a week from home.
• Find out what State benefits you are entitled to – if you are on a low income, you may qualify for a one-off Sure Start Maternity Grant of £500.
• Make a list of everything you want, then trim it down to what you really need – and start shopping early.
• Circulate your list among friends and family, like a wedding list, so they can get things they know you want. Do not forget to include items for when your child is six months and older.
• Take advantage of bulk-buy deals and special offers for items such as nappies and talc and stockpile money-off coupons. If you have not already, join the loyalty schemes and baby clubs of your favourite shops and use their wholesale outlets.
• Make saving a habit – you will need extra cash throughout your child’s life. Plan for school outings, sports and hobbies as well as fees for education.

Equipment

• Ask friends and family if they have any unused items that can be recycled for your child.
• Buying second-hand will require more effort but will save you a fortune. Check out auction sites, car boot sales, charity shops and local recycling centres – but never buy a used car seat unless you can be certain it has not been in an accident.
• Ask close family for bigger items if they want to buy things for the baby.
• Invest in a cot-bed that will be suitable for your child for many years rather than splashing out on something that will be outgrown in a few months.
• Do not be afraid to ask your midwife if she can help with sourcing the equipment you need – she visits lots of mums, many of whom may have unwanted items. Similarly, ask your public health nurse about safety gates and fire guards.

Clothing – for baby and mum

• Remember that babies do not know or care if they are wearing designer labels.
• Try supermarket and budget clothing store kids’ ranges – most are good quality and there is no point in spending more when your child will grow out of them faster than they wear out.
• Budget stores and auction sites can be a cheap source of maternity clothing and underwear.
• Think about using a single plastic bib that you can wipe clean rather than buying a stack of cloth ones that you have to wash every time.
• Reusable terry nappies require a relatively high initial outlay – usually around £100 – and are more labour intensive than disposables but they work out considerably cheaper in the long term, especially if you can use them for more than one child.
• If you prefer to use disposable nappies, go for supermarket own-brand or bulk-buy premium brand packs when they are on special offer. Do not forget to collect your loyalty points.

Baby food

• Breast feeding is much cheaper than buying formula milk, but you will need to invest in some good nursing bras and a breast-pump and sterilising equipment so you can take an occasional break.
• If you bottle feed, stockpile formula milk when it is on special offer and hunt out a second-hand steriliser and bottles.
• Make your own baby food and pureed fruit and save the expensive jars for going out. Puree and freeze your own leftovers for easy meals.
• If you are not very confident in the kitchen, buy a basic baby-food cookery book or search for advice and recipes on the web.

Toiletries and medicine

• Only use baby wipes when you are out and about – a cloth and water is fine at home.
• Instead of using expensive chemical cleansers and moisturisers, try buying natural oils, such as jojoba, avocado and apricot kernel, from a health food shop. A big pot of aqueous cream is even cheaper and will do the job just as well.
• Opt for own-brand medicines and toiletries rather than splashing out on pricier, big-name alternatives.
• Buy big wads of cotton wool and tear it into pieces while you are watching TV – it is cheaper than cotton-wool balls.

Toys and games

• Ask friends to give you toys rather than baby clothes, so you do not find yourself swamped with outfits that your fast-growing tot will only wear once.
• Check out car boot sales, charity shops and online auctions for toy and book bargains.
• Make your own baby toys, such as shakers and mobiles – your baby will like them just as much as the shop-bought ones. A saucepan and wooden spoon is often a noisy favourite.
• Join your local library. As well as free books, it may have a toy library that will let you try before you buy.
• Watch out for give-away toys and books, for example on the front of magazines, and collect discount vouchers. If there is no local toy exchange, start one up.
• See the money saving tips for Entertainment for more ideas.

Education

• If you are thinking about private education, start saving as soon as you even contemplate getting pregnant.
• Some schools offer a discount if more than one child attends or you can pay in advance.
• Regular gifts from grandparents to pay school fees could be exempt from inheritance tax – if this is an option, ask a financial advisor about conditions.

Sports and hobbies

• Check if your child’s school runs after-hours sports activities – that is cheaper than joining a private club.
• Football, rugby, cricket and other amateur clubs are always on the lookout for new young members – some allow them to join free while under 16. The same is true for many local hobby clubs, from model railways to astronomy societies.
• Local council facilities can be good value – parks usually have football and cricket pitches available free. Some have free tennis courts.
• Many public swimming pools vary their prices by time of day – check when is best value.
• Some councils operate leisure card schemes for their facilities, which gives great value for regular sports players.
• For older children only, many local events – from county shows to festivals – need stewards and other help. In return for a few hours of work, you get free entrance. You will usually need to be at least 16.
• While new bikes can now be bought quite cheaply, second hand ones are even cheaper – check out small ads and websites. The same applies for other sports equipment.

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