Parents 'don't budget for baby'

Cots, toys, milk and nappies force parents to tighten their belts

Parents spend more than £3,500 on a baby in its first year of life, new research suggests, but only one in 10 families budget for that amount.

A survey of 1,006 people for American Express found Britons spent an average of £3,605 on items such as food, clothes and toys.

But the company warned that only 13% of those questioned had correctly estimated the cost of a baby.

Nine out of 10 said they had been forced to cut back on other costs.

The total average figure of £3,605 for the first year of a baby's life included:

• £610 on formula milk and £360 on baby food
• £550 on disposable nappies and £346 on clothes
• £248 on a pram and £234 on a cot and bedding
• £168 on nursery furniture and decorations
• £150 on toys and accessories

The cost of childcare and the impact of lost earnings were not included in the total.

Almost of half of people with a child under five who were surveyed admitted the expense of bringing up him or her had been higher than they had originally expected, while only 9% said they had budgeted sufficiently.

Three-quarters of parents had tightened their belts by eating out or going to the cinema less often.

Almost two-thirds said they were buying less clothes for themselves.

Around half had shelved holiday plans, 39% spent less money on groceries, while one in 10 had bought a cheaper car.

Tom Allder, head of credit cards at American Express, said: "The first year of a baby's life is expensive, especially when you take into account childcare costs and loss of earnings."

He urged parents to plan ahead to avoid having to make sacrifices in other areas later on.