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Breaking news! Having a baby is expensive. Here's three ways to help cover the cost

Cost of kids - Three ways to help cover the cost

Breaking news! Having a baby is expensive. This might not come as a huge shock to anyone, but what might come as a surprise is just how much the bill is.

It costs an average of £30.23 a day to raise a child to the age of 21, according to the Money Charity’s monthly research round-up. That works out at a startling total of slightly more than £230,000.

Whichever way you look at it, that’s a large amount of money and is going to put a strain on your finances.

So here are three ways to plan for your new arrival and make sure the only thing giving you sleepless nights is the bundle of joy itself.

Making a baby budget

The first step in coping with any financial change is to come up with a new budget and you shouldn’t wait until the baby is born to do this.

You’ll need to work out how you will handle the drop in income, cover the costs of the baby and buy all the things you need ahead of time.

Make sure you speak to other parents-to-be about what baby products you actually need to buy and remember you can find bargains by getting some things second hand.

Benefits you are entitled to when pregnant

There are a range of benefits you can claim when you’re pregnant and after the baby is born.

Along with the possibility of Child Benefits and Tax Credits, mothers-to-be can also get free prescriptions and NHS dental treatment.

Don’t forget, if you’re working you are legally entitled to parental leave, which means the income shock won’t be as bad.

Plan for the costs of childcare

Unsurprisingly, childcare costs a good deal too.

Costs can vary from £116 a week for part-time care to £217 for full-time, so you need to start thinking early about how you are going to cover this.

However, you can get some help to pay for it in the form of tax credits (up to 70% of your childcare costs), childcare vouchers and workplace nursery schemes. 

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