Planning and saving

It’s difficult to estimate the cost of having a child but one of the biggest costs is lost income. Possibly the toughest decision you have to make is whether you or your partner will give up work to look after the child, or put them into childcare. Both are going to take a big chunk of your income.

You need to think about how having a child will affect your house, holidays and transport. You may need to move to a bigger home or get a car to take your child to preschool. And you may have to start taking your holidays when the school term is over and holidays are traditionally more expensive.

Besides needing money for prams, baby seats and cots, you should think about the big expenses you can expect in the future.

Outside of childcare, the major expense is likely to be their education. If you want to send your kids to a private school, you should think about saving for it ahead of time. Also, if your children want to continue their education after 18, they will need your support to get through college and university.

You need to decide how to best save for the future and should aim to have both short term and long term savings.

Are you and your partner financially compatible? You need to deal with your different approaches to money. It’s important to understand each other’s ideas and find a compromise. Read our section money and your relationship for further details.