The average cost of raising a child to 18 is over £200,000, but the first year is most impactful financially. For tips once baby arrives, see our new parents money guide.
First-Year Baby Costs
Budget for these essentials.
- Nursery furniture, pram, car seat: £1,000-3,000
- Clothing: £300-600 in year one
- Nappies and wipes: £400-800
- Formula feeding: £500-1,000/year
- Childcare if returning to work: £800-1,500/month
- Lost income during parental leave
Building Your Baby Fund
Aim for £3,000-5,000 before baby arrives. Start a sinking fund — £200/month for 18 months = £3,600. Use SYM's challenge features for a baby-themed saving challenge.
Maximising Parental Benefits
Statutory Maternity Pay: 90% salary for 6 weeks, then £194.32/week (or 90% of earnings if lower) for 33 weeks in 2026/27. Child Benefit: £27.05/week for a first child. Tax-Free Childcare: up to £2,000/year per child. Check Universal Credit eligibility.
Smart Spending for New Parents
Buy secondhand from Facebook Marketplace, NCT sales, Vinted. Use the family budget approach. Start a Junior ISA as soon as baby is born.
Frequently Asked Questions
How much should I save before having a baby?
£3,000-5,000 minimum for initial costs plus a 3-month emergency fund on top.
When should I start saving?
Ideally 12-18 months before trying. The earlier you start, the less monthly pressure.
Does having a baby affect my tax?
You can claim Child Benefit (£1,406.60/year for a first child in 2026/27). High earners over £60,000 may need to repay via the HICBC.
- baby costs
- family finance
- baby saving
- new parents
- UK family budget