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Planning for a family isn't all child's play . . .

When you start a family, you should think of planning for those unexpected eventualities that could affect your baby’s financial wellbeing
When you start a family, you should think of planning for those unexpected eventualities that could affect your baby’s financial wellbeing When you start a family, you should think of planning for those unexpected eventualities that could affect your baby’s financial wellbeing

ARE you one of the many who had to put your wedding and starting a family on hold because of the events of the past year?

Well, it looks like things are getting better, and we will soon be back to some sort of normality, and so you may be contemplating the possibility of starting a family again.

In that case, you may be interested in hearing that on the financial planning side, keeping baby safe, healthy and happy, and keeping you happy so that you can enjoy being parents, does involve a little forward thinking!

Here are a few numbers from a new study from MyVoucherCodes that relate to just the first month of having a new baby.

In the first month, being a new mum or dad will, on average, cost over £500, on top of your usual bills and spending.

Now calm down, that’s not as bad as it sounds!

There are a lot of once-off purchases here, which you won’t have to make again. Here’s how it breaks down. You will probably spend around £24 on nappies, you will spend £243 on clothing, around £54 on feeding equipment, and £184 on baby’s bedroom, such as toys and furniture. That lot alone adds up to £505.

This survey covered over 1,100 people, and of those, two thirds (64 per cent) said they weren’t prepared for these costs, as they had not planned ahead.

If you don’t have a friend or relative to give you baby equipment they don’t need any more, there are other costs that will be unavoidable.

The average cost of a cot these days is £130, however, depending on how fancy you want to get, you can spend anything up to £700. A new pram will cost £100, but again, that’s the bottom end of the market and you may wish to spend more.

When you have to bring baby out in the car, a car seat will set you back between £100 to £150, and again you can spend a lot more to go top of the range.

Then, a little later on, comes the cost of childcare. According to the Money Advice Service, sending a child to nursery part-time currently costs an average of £138 a week, and for 50 hours costs £263.

Now, these are just the practical, individual outgoings, but you also need to step back, and look at the bigger financial picture.

When you start a family, you might want to think of planning for those unexpected eventualities that could affect your baby’s financial wellbeing.

Many new parents begin to think about life insurance, so that if the worst were to happen, at least the family would have a payout that would go a long way towards keeping everyone financially secure.

New parents often think about critical illness insurance as well.

Critical illness insurance covers most major health conditions that can force you to stop work for an extended period. While all policies cover the core conditions of cancer, heart attack, stroke, and major surgery, most cover many more diseases and conditions as well. It is important to locate the policy that is right for you.

Like life insurance, critical illness is financial protection for your family if they lose your income for a while, or for good, due to some unexpected health setback.

However, all the above – saving for the future, and taking out family protection insurances – are not simple matters, and are best done with the assistance of a financial adviser.

Would you like to plan for your baby’s financial future and security? Give us a ring any time.

:: Michael Kennedy is an independent financial adviser and pensions specialist and can be contacted on 028 71886005. Further information on Facebook at Kennedy Independent Financial Advice Ltd or at www.mkennedyfinancial.com