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Here’s How Much Starting a Family Could Cost

Raising children can get quite expensive - with the basic cost at around £74,000. To help make this more affordable, we've detailed four great tips.


  • The average basic cost for raising a child to the age of 18 is around £74,000;
  • Child benefit reportedly only covers 22% of this;
  • Here are four tips to make that first year more manageable
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With some experts predicting a baby boom for early 2021, there’s every possibility you may be considering starting a family – or perhaps even have a little one already on the way. Although you may feel a variety of emotions right now (from excitement to profound terror), it’s all worth it in the end.

However, it’s completely normal to be worried about your finances. After all, it doesn’t take a genius to realise that children can be expensive. If you’re looking to get into a more secure position before your kid comes along, we have some suggestions which could help you do just that.

How much do children cost?

The Child Poverty Action Group estimates raising someone to the age of 18 will set a couple back an average of £74,333. Although that figure is high enough as it is, that’s just the ‘basic’ cost. The ‘full’ price for raising a child is reportedly more than £150,000.

Worryingly, the organisation also estimates that child benefit will only cover 22% of the basic cost. Therefore, parents will need to find the extra money somewhere.

Four ways to make the first year more financially bearable

The good news is you won’t need that £74,000 straight away. In fact, the first year can actually be quite affordable with a bit of financial planning. Here are four measures you can try:

01. Time to start budgeting

If you’re not budgeting already, now is the time to start. It’s important to get a good idea of exactly how much you’ve got coming in and going out. Not only will this help determine how much you can spend preparing for your little one, but will also highlight whether you need to make cutbacks.

02. Don’t be fooled by expensive products

The market is full of expensive baby products and designer-led clothes. However, babies are usually entertained by a set of keys. Your kid will probably get just as much enjoyment from a £10 toy instead of a £50 one. Considering the rate your child may grow as well, clothes are similar. There’s no point spending an excessive amount of money when an outfit might not fit your little one in a few months.

03. Accept help if offered

If your family, loved ones, or close friends offer support, accept it. Be it in the form of second-hand products or just the offer of a takeaway, you’re going to need all the help you can get in the first few months.

Although there are some items which shouldn’t be purchased second hand, such as a crib mattress, you can save money by accepting just about everything used.

04. Realise your kid has no expectations

This is more for your sanity rather than finances, but the point stands. You might have an idea of the sort of life your kid may want to live, but they won’t have any expectations about the world. This means you don’t need to buy anything too expensive. As long as your child is healthy and happy, that’s all that matters.

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Need help with your finances? Let us help

If you’ve completed your budget and aren’t entirely sure how you’re going to afford to start a family, we could help control your finances through debt consolidation. Using the funds provided, you could repay your lenders and just make one affordable payment each month.

To find out if you would qualify, click the button below. If so, the money will be paid straight into your account:

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Unsecured Loan Representative 69.9% APR

Borrowing £7,500 over 36 months, repaying £502 per month, total repayable £18,083. Total cost of credit £10,583. Interest rate 69.9% (variable). The lenders on our panel offer loans for 12-60 months, with rates from 5.8% APR to 89.9% APR. The Representative Example is based on all loans paid out by lenders between 19th Apr 2022 and 23rd Dec 2022.

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If you choose to add fees to the loan: Assumed borrowing of £25,000 over 120 months, plus a broker fee of £2,500 and a lender fee of £250 would result in monthly repayments of £345.55, the borrowing rate is 8.6% (variable), the APRC is 11.7% (variable), total charge for credit £16,466.00 and the total amount payable £41,466.00. You can opt to pay the lender and/or broker fees upfront, your adviser will discuss these options with you.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it. All rates vary subject to loan amount, loan type and status. Repaying your debt over a longer period of time may increase the amount you pay.

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