Don't Let Money Worn Ruin This Special Time; New Research Suggests Many Parents-to-Be Are Worried about How They'll Cope with the Financial Costs of Looking after a Baby. LISA SALMON Asks the Experts about the Best Ways to Ease the Financial Baby Sburden
Byline: LISA SALMON
time^ New research suggests many parents-to-be are worried about how they'll cope with the financial costs of looking after a baby. LISA SALMON asks the experts about the best ways to ease the financial baby burden THE UK is experiencing a baby boom - but for some parents-to-be the excitement about their new arrival is dampened by worries about how they'll cope financially. A new report by comparison website MoneySupermarket.com has revealed that more than a third (37%) of expectant parents are concerned about how they'll afford die cost of having a baby, and 44% of diem say die stress has caused rows with their partner.
Some of diat stress may be connected to die fact diat die national average cost of childcare per year is now PS4,993 for 25 hours - and up to double that, of course, for the 23% of parents expecting to pay for full-time nursery care (26-50 hours). But many working mums feel diey have no option but to pay childcare costs, as die need for more money means diat once baby's born, nearly half of working mums (45%) cut short their maternity leave. Instead of taking off the full year they're entided to on reduced maternity pay, a third (34%) of those questioned by MoneySupermarket are planning to take six to eight months off after die birth, while 10% say they'll take just three to six months.
Clare Francis, personal finance expert at MoneySupermarket, right, says: "As exciting as planning for a baby is, it can also be a daunting and stressful time. "Having to adjust your lifestyle to cope with die new arrival is hard enough, but with many couples seeing a fall in income due to one of them giving up work or taking maternity ' leave, it can heap further pressure on families when they least need it. "However, money worries needn't get in the way of what should be a magical time. Planning ahead and understanding your finances ahead of adding to your family is vitally important, and will save you many sleepless nights - at least until the baby arrives."
Reviewing household outgoings, saving some money if possible and reducing everyday spending can ease money pressures, says Clare, although 65% of parents say diey haven't worked out how much household costs will rise once baby's born. Clare advises parents to put some savings in an ISA, and make sure any extra savings are earning competitive interest. Any debts such as credit card bills should be switched to 0% interest deals to reduce outgoings. While half (51%) of expectant parents say they have enough money saved should any unexpected costs arise after baby's born, 24% will rely on credit cards and 17% on overdrafts to deal widi any emergencies. One in five (20%) also say they would borrow from family and friends to get by. "Planning your finances for having a baby needn't be a major cause of stress for expectant parents," says Clare. "Taking a thorough Jook at your household kbudget, making some imple money-saving changes and being realistic about how much you really need to spend on things for your baby will ensure you and your family get off to a flying start." She stresses that
Childcare costs averaging nearly PS5,000 a year can give parents a real financial headache parents shouldn't fall for the marketing hype surrounding what's 'essential' for the arrival of a baby, pointing out: "It's easy to believe you need all die latest paraphernalia and gadgets money can buy. "But in reality, you'll probably find you need a lot less dian you think." It's estimated that expectant parents splash out an average of PS166 each to get ready for dieir new arrival, but Clare suggests new parents should try to borrow or buy second-hand baby equipment and clodiing so diey don't have to splash out so much. …