Using a panel of 500 first-time parent respondents across the UK between August and September, 2011 our survey reveals that the cost of starting a family has soared in the last few years to £10,500. *** The survey breakdown of costs is: £ 1,547: pre-natal costs £ 4,454: first year essentials £ 4,500: childcare £10,501

1. Cost of Having a First Baby
Soars to £10,500
2011 Report
your one stop shop for kids and baby products

2. Cost of Having a First Baby Soars to £10,500
First Time Parents Dazzled by Key Findings: Expenses before a baby is born
New Baby Expenses Maternity Clothing £320.00
When new parents or parents-to-be imagine life with a Our survey reveals that the average cost of raising a child, Pregnancy Toiletries £90.00
new baby, money is often at the forefront of their minds, just during the baby’s rst year of life, is now £10,500. This Maternity Underwear £72.00
causing a great deal of stress and concern. The cost of total is up 50% from the 2003 average of £7,000. Pre-birth
Nursing Pillows £20.00
having a baby for rst-time parents has climbed to its purchases, such as maternity clothing, a pram, carrycot
highest total yet and does not show signs of decreasing. and car seat, combined with a year of day-to-day items Books £50.00
Through recent surveys that Mum’s Mall has conducted such as nappies, clothing, formula milk, sterilising and Stretch Mark Creams £120.00
with parents, together with a comprehensive look at the feeding equipment, and baby food, come to a conserva- Car Seat £125.00
costs of baby products in stores a liated with tive £6,000 or more. This gure excludes the cost of child-
care, home renovations or loss of parental income. Of this, Nursery Furniture + Cot £750.00
mumsmall.com, we have found that new parents typically
spend anything from a budget-conscious £5,500 to more than £1,500 is needed pre-birth, for maternity items Total Expenses Before a Baby is Born £1,547.00
£8,000 before they even think about childcare or ‘invis- and to prepare the nursery with essentials like furniture,
toys, books, feeding equipment, a monitor and bathing
When the Baby is Born
ible’ outlay such as loss of earnings for stay-at-home Stroller / Baby Pram + accessories £420.00
parents. With fashionable strollers like the Bugaboo necessities, with another £4,500 spent through the year.
And the total can easily creep up by another £2,000+ for Baby Bathing & Skincare Products £240.00
Donkey costing as much as £1,200 and nursery sets
selling for around £2,000, it is easy to blow almost any parents who fancy a bit of high-end designer accessoris- Disposable Nappies £750.00
budget without much e ort. ing or hi-tech tot gadgets, or even some nursery renova-
Baby Wipes £300.00
tion.
The UK’s Annual Rate of In ation (in August 2011) is Feeding Bottles + Sterilisers
already at 4.5% and is expected to pass 5% by the end of After baby arrives, parents keep shelling out increasingly £90.00
+ Bottle Warmer
the year, so the costs of raising a child can only go up. large amounts throughout the rst year. As the little one
grows and develops, clothing, toys, books and personal Breast Pumps £150.00
Parents are under more pressure than ever to be wise in
care items are constantly being replaced and upgraded. Baby Clothing £640.00
handling their nances and choosing what to buy, in
order to ensure adequate funds for their family, now and Parents who have a toddler between the ages of one and Health Products £60.00
in the future. four may spend around £14,000 per year. Though the Baby Monitor £80.00
gure drops to £9,500 a year for ve- to ten-year-olds, and
“
then goes down to £6,831 for 11- to 17-year-olds, it is the Toys & Books £400.00
The average cost of raising initial expenditure that most shocks rst-time parents. Formula Milk (average £60
£720.00
a child, just during the baby’s Many parents confess to spending far more than was per month)
necessary on a rst child. They are often overwhelmed £90.00
rst year of life, is now
“ by the vast array of baby items that appear to be must-
Baby Bouncer / Swing
Safety Gates £84.00
£10,500. This total is up 50% haves, and typically they later nd they have bought
Baby Food £430.00
from the 2003 average of much more than they actually needed. All parents want
the safest and highest quality goods for their child and Total Cost Excld. Childcare & Home Upgrade £6,001.00
£7,000 every company knows they do, marketing their product Child Care - 25 weeks @ £180 £4,500.00
as the absolute best and making it di cult for rst-timers
Home DIY / Upgrade for Baby £1,000.00
to distinguish between brands.
Total Cost of a Baby Year 1 £11,501.0

3. Cost of Having a First Baby Soars to £10,500
For some parents, the dilemma of convenience limits eat and to the cinema, were the biggest changes. Other
“
their ability to shop frugally. It may be easier to use just parents mentioned that buying fewer new clothes and
one store or one website for all of their baby needs rather putting o home improvements made the list of The cost of childcare is one
than shopping around for the best bargains. And with so
many competing products on the market, it can be
cutbacks, as did a switch to cheaper grocery brands.
Some families stopped holidaying abroad and some gave
of the biggest drains on
family income. For dual-
di cult for rst-time parents to nd the truly best deals.
Mumsmall.com eliminates this problem by doing the
comparison-shopping for them, identifying the best
bargains and brands in a single, convenient location.
up on holidays altogether.
The Big Picture:
While a sense of thrift can reduce expenditure short-term,
income households, with
both parents working, child-
“
Though parents continue to watch how the celebrities are parents must also consider the bigger picture when care costs are staggering.
shopping, it is a sign of the times that safety and practical- planning what to cut and what to keep paying for. As an
ity are becoming more important. Parents need useful, example, does it make long-term sense to economise on
timesaving products that are reasonably priced. Luxury regular payments into a savings account or – more
and brand name items are becoming less appealing as critically – a pension scheme? The bene ts of a pension
thrifty spending takes top priority. may seem a long way o when a family is young and
things are tight but those child costs are going to be
Childcare: around for some years and it is vital to remember that
planning for the long term future is just as important, if
The cost of childcare is one of the biggest drains on family
not more important, than budgeting for tomorrow.
income. For dual-income households, with both parents Total Cost of Baby - First Year
working, childcare costs are staggering. Many parents are (includes childcare)
unable to work, train for a job or study due to the prohibi- £12,000.00
tive cost of childcare. For some parents, the expense of
childcare negates the nancial bene ts of returning to
work, depriving the family of their earnings. £10,000.00
Our survey showed that childcare in the rst year came
in at a typical £4,500. Add this to the £6,000 rst year
expenditures and you have a staggering total of £8,000.00
£10,500.
Low-income families are most a ected by childcare costs.
£6,000.00
Interviews we conducted with parents in low-income
households reveal that childcare forces them to put a
severe limit on even essential items, and sometimes they £4,000.00
go into debt in order to pay for childcare and basic house-
hold bills.
£2,000.00
Making Changes: £-
During the interviews we conducted with rst-time
2003
2004
2005
2006
2007
2008
2009
2010
2011
parents, many noted that they had to make quite a few
lifestyle changes to accommodate unexpected expenses
associated with having their rst baby. Cutting back on
entertainment and leisure activities, such as going out to

4. Cost of Having a First Baby Soars to £10,500
Recommendations:
Things can look daunting but there is hope for new parents. With a bit of planning, it is
possible to cut out unnecessary expenses and save money in the process, without any
long-term loss. Here are some recommendations to get you started:
Shop online using comparison sites, such as mumsmall.com to get the lowest Shop for second-hand items at ‘good as new’ or charity shops: they often only
prices as well as useful discount voucher codes need a wash and can add a lot of character
Create a budget before your baby is born and work hard to stick to it Borrow baby goods from friends or family members and look out for friends
Begin identifying and cutting out unnecessary spending whose babies have outgrown items that will suit your baby
Look for deals on entertainment, and go on creative family outings that cost Go to, or set up, baby clothes ‘swap’ parties. They can also be great fun.
little to no money Use the library for books, lms and music
If you’re tempted to use formula a lot, consider that breastfeeding is healthier Use loyalty cards and store cards with a rewards program to accumulate
for your baby and could save you around £50 each month points every time you shop for baby items
Make your own baby food rather than buying premade jars; you can control Start a savings account that you will not dip into for additional expenses, and
the ingredients and nutrition while saving money add a small amount of money each month
Look into reusable nappies to save as much as £600 just during the rst year
Buy a set of reusable wipes and make your own solution using water, soap
and essential oils
Buy in bulk for recurring items that you will get through quickly, such as nap-
pies, wipes and formula
Choose discount brands and supermarket brands rather than ‘name’ brand Endnotes
items whenever possible 1. The key ndings of this report are based 500 respondents to a survey conducted by
mumsmall.com. The results are not based on a representative sample of the population.
Set up an online registry (similar to a wedding list), which will encourage
family and friends to buy you what you actually need and want 2. Making Work Pay - The Childcare Trap (2001), Save the Children
3. Retail Sales - August 2011 - Summary, O ce of National Statistics
4. Figures taken from stores a liated with mumsmall.com - Mothercare.com, Kiddicare.com, John
Lewis, Babies R Us, Mamas & Papas, Boots.com, Argos, Tesco Direct, Asda Direct, Amazon.com

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