Baby Boom & Bust

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Full results of the research

Parents of newborn babies can expect to spend around £4,000 on their first baby - before their tot even reaches their first birthday, according to a new report.

Kitting out a nursery, coupled with the added cost of clothes, nappies, bedding, toys and food leaves millions of parents with a substantial hole in their pocket if they’re not one of the 21 per cent of families which saved for the new arrival.

On top of that car seats, pushchairs and other bits and pieces also send the cost soaring for first-time mums and dads.

But amazingly, the study also found one in three parents admit they 'got a bit carried away' and overspent hugely in preparation for their new arrival, with 52 per cent of these purchased made during the first half of pregnancy as excitement (and hormones) kicked-in.

Yesterday Deneice Harwin from Philips Avent, which carried out the research among 2,891 parents, said: "Our research shows that three quarters of new parents worried about how they would cope financially before their baby had even arrived, so clearly money is a major concern."

We know that new parents can often get caught-up in a ‘new baby shopping frenzy’, as a third agreed that they spent more than they needed, buying things they didn’t even use. By doing a little research into what they will really need, and buying good quality items which will last, new parents can save an average of £136 when baby arrives.

By the time a second child has come along though, parents are more cash-conscious and make more informed purchases, based on what they learnt first time around.”

The research, which was undertaken between 15 – 20 April 2010, found parents can expect to hand over £271.59 on baby's nursery including cot, furniture, soft furnishings and paint. Toys will come in at a whopping £661.20!

They are also looking at spending around £741.24 on clothes and another £65.50 on a travel cot so baby has somewhere to sleep on weekends away or holidays.

Close to £138.38 will go on a pushchair, an average of £70.03 for the first car seat and around £51.96 on a high chair.

Mum and dad will also invest around £51.94 in feeding and sterilising equipment and they will spend £861.36 on baby’s food during the first year.

The study also found more than one in three parents thought they spent too much money on toys while around one in four said they bought far more clothes than they needed and wished they’d spend some of that money on other things. The new baby items parents agreed were worth spending the money on were: pushchair (71%); cot (55 per cent); car seat (48 per cent); high chair (34 per cent); feeding equipment (26 per cent).

Parents who have more than one child claim they learnt their lessons from the first time round, 73% claimed to be more savvy spenders when their second child arrived, with 40 per cent of them simply having a better idea about what they needed to buy and avoiding making useless or poor purchases.

In fact the stats shows parents have calculated they spent up to almost £170 less on their second child thanks to hand-me-downs and more canny cash management.

Mums and dads also gave an interesting insight into how bringing a baby into the world affects life on a daily basis, with almost four out of ten admitting it was a struggle to get anything done.

Yesterday Philips Avent’s family finance expert Sue Hayward added: "With just a little planning new parents can make some sound purchases to welcome their baby into the world without breaking the bank. The key is to look for quality items which will last for a long time or can be sold-on to help recoup some of the cost. Talk to friends and family and even your midwife for advice on what you really will and won’t need."