Babies are expensive. Like, really expensive. Even when parents plan and prep for the arrival of a newborn, most of the time, it isn't enough, according to a recent survey.
LendEDU surveyed 1,000 parents to get a better look into the financial commitment of raising a baby for today's generation. And even though moms and dads start saving up well in advance, the amount still surpasses their expectations. Survey participants expected the first year to cost them £9,371, and on average saved £9,330. But most parents actually end up spending £13,186 during the first year of baby's life.
You're probably wondering where more than £10,000 is going. LendEDU breaks it down for us.
- 30 per cent goes to toys, diapers, etc.
- 28 per cent goes to food
- 17 per cent goes to healthcare
- 12 per cent goes to miscellaneous things
- 13 per cent goes to childcare
In not-so-shocking results, a lot of parents say the cost of baby impacted their decision on having more kids. A combined 53 per cent of parents admit the first-year expenses have stalled or prevented them from having more children. Specifically, 27 per cent need to wait a few years and 26 per cent don't plan on having more children.
The results aren't too surprising considering nearly a quarter of those surveyed had to take on debt in order to keep up with the financial responsibility of raising baby.
Check out the full survey results here. And when you have worked yourself into full-blown panic mode, read expert advice on how to prepare your finances for baby and simple ways to save.
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