Do you have a million dollar baby?

Your new baby may be the light of your life, but this little bundle of joy can be expected to cost around £4,000 – even before his or her first birthday, according to a new report.

Kitting out a nursery, coupled with the added cost of clothes, nappies, bedding, toys and food leaves millions of parents with a substantial hole in their pocket if they’re not one of the 21 per cent of families which saved for the new arrival.

 On top of that car seats, pushchairs and other bits and pieces also send the cost soaring for first-time mums and dads.

 But amazingly, the study also found one in three parents admit they 'got a bit carried away' and overspent hugely in preparation for their new arrival, with 52 per cent of these purchases made during the first half of pregnancy as excitement (and hormones) kicked in.

The research by Philips Avent among 2,891 parents found many can expect to hand over nearly £300 on baby's nursery including cot, furniture, soft furnishings and paint.  Toys will come in at another £661.20, while they are also looking at spending nearly £750 on clothes.

Parents who have more than one child claim they learnt their lessons from the first time round, 73% claimed to be more savvy spenders when their second child arrived. In fact the stats show parents have calculated they spent up to almost £170 less on their second child thanks to hand-me-downs and more canny cash management.    

Leading personal finance expert Sue Hayward says: ''With just a little planning new parents can make some sound purchases to welcome their baby into the world without breaking the bank.  The key is to look for quality items which will last for a long time or can be sold-on to help recoup some of the cost.  Talk to friends and family and even your midwife for advice on what you really will and won’t need.”

For further information and tips on making you money go further when you have a new baby, visit

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