RAISING a child is expensive business and experts claim it can cost up to £100,000 to bring a child up from birth to age 18.
There are ways for savvy mums and dads to cut the costs though, from relying on hand-me-downs to reusable nappies.
Having a baby and bringing up a child may generate plenty of happy memories but there is also a big bill attached.
The Child Poverty Action Group claims it can cost £71,611 for a couple to raise a child and £97,862 for a single parent.
This takes account of extra costs such as paying for food, clothes and if you need a car.
Parents may also have to reduce their working hours, which can reduce your family income.
The costs rise to £152,747 for couples and £185,413 for single parents when you include housing and actual childcare costs such as nursery.
Most parents would argue that the love and precious memories you get from a child far outweighs the cost.
But there are some ways to save money when bringing up your baby.
Here are some of our top tips.
Free childcare hours
Working parents are entitled to 30 free hours of childcare per week for 38 weeks of the year once their child is three-years-old.
The free hours can be used at any Ofsted registered nursery or childminder.
The 30 hours are only available for working parents but those on benefits such as Universal Credit may be eligible for 15.
If you or your partner have an expected ‘adjusted net income’ over £100,000 in the current tax year then you will not be eligible for any free hours. This includes any bonuses you expect to get.
Find out more on the Gov.uk website.
Tax-free childcare accounts
You can fund your child's activities such as nursery, after-school clubs or holiday camps using tax-free childcare (TFC) accounts.
The government will pay £2 into a TFC account for every £8 you contribute.
These accounts replaced childcare vouchers in October 2018.
Childcare vouchers let basic rate taxpayers save £243 – dropping to £124 for higher-rate taxpayers – per month from their gross salary into a childcare voucher account to pay providers.
Only people receiving childcare vouchers up to October 2018 can still get them and you cannot reopen an account once you stop.
Visit Gov.uk/tax-free-childcare for more information.
Children's savings
There are a range of children's savings accounts that let you put cash away for your loved ones.
The rates are often higher than those adults can access but there are usually limits on how much can be saved.
Parents could also consider setting up a Junior Isa, which lets you save or invest up to £9,000 each year and earn any returns tax-free.
The account can be accessed by a child once they reach age 18 so it could build a decent nest-egg for them.
Reusable nappies
New parents will get through a lot of nappies.
A more eco-friendly and cheaper option may be reusable nappies.
The Nappy Guru claims parents will spend more than £1,200 on single-use nappies, bags and wipes but could save hundreds by using reusable nappies.
Many councils offer cashback or vouchers worth up to £50 for parents switching to reusable nappies.
Avoid buying brand new
It can be tempting to buy your child the latest gadget or to dress them up in the latest cute fashions.
But Amanda Gale, Instagram influencer for NW Mums, says you can save money by shopping around for secondhand items.
She said: "Young children will grow out of clothes or get bored of toys within a few months so always buying new can be a waste of money."
She suggests using social media such as Facebook Marketplace to pickup bargains.
Gumtree, eBay and Preloved also list cheaper secondhand and sometimes new items such as toys and clothes.
There are also apps such as Olio, where individuals and businesses like Tesco and Pret list food items, as well as books and clothes, for free that would otherwise go to waste.
Upcycling
One man's junk is another's treasure.
It is worth scouting car boot sales, skips or social media listings for people giving away old bikes, beds or furniture.
You could use your art skills to upcycle old items that could then be useful for you or your child and save money on an expensive new purchase.
Iona Bain, founder of the Young Money Blog, said: "You might write off a plain wooden bookcase because it looks old-fashioned when it’s a bona fide good find.
"Just take a small tester paint pot and a bit of Fablon and voila, you have a unique, lovely piece of furniture you could keep for years.
"Check out TikTok for inspiration and keep an upcycling kit, containing sandpaper, small paint pots and quality sticky back plastic on standby."
Toy rentals
Kids can get bored of toys pretty easily.
Rather than paying for expensive dolls or puzzles that get discarded at the bottom of a cupboard, companies such as Whirli or the Toy Box Club will let you rent, return and swap toys on a monthly basis.
This gives kids something new to play with each month.
Costs can vary but Whirli, for example, charges £9.99 per month for a sack of toys that can be swapped or even purchased at lower cost than the retail price.
Secondhand phones
Many parents dread the moment their child asks them for a phone.
It may give them a taste of independence and help you keep track of where they are, but there is a risk that an expensive handset gets lost or damaged.
Consider starting them off with a cheap secondhand or older model from eBay.
Alternatively, MoneyMagpie lets parents rent a high quality refurbished phone from just £6.99 a month, which can be upgraded for free every year.
Check cereal boxes
Check the back of cereal boxes for voucher codes or money off days out.
Cereal packs may offer two-for-one deals to attractions that you cut out and keep or codes that you enter online.
Check before you throw your cereal boxes away as that box of Coco Pops or Frosties could help get you get a day out at Legoland.
Make friends with a bigger child
Choosing friends based on their child's size may be a strange approach but
Sarah Coles, personal finance analyst for Hargreaves Lansdown said it can be a great way to get hand-me-downs.
She said: "Make friends with the parents of a child that’s slightly bigger than yours.
"This wasn’t something I ever did deliberately, but as my friend’s son shot up in height after starting secondary school, I suddenly had a brilliant source of second-hand uniform.
"I was then able to offer the same service to someone with a slightly younger son."
Pocket money
Giving your child pocket money may cost you money in the short term but Ms Coles adds that it can save you money in the long-term as it teaches your child how to budget.
She said: "It dramatically weakens the incredible money-sapping potential of pester power.
"As soon as you get a request for more comics, sweets or small bits of plastic, you don’t have to say no, you can just suggest they can get it with their pocket money if they really want it.
"This not only saves money, but helps them prioritise their wants and needs too."
School uniform savings
The average cost of a new school uniform is £100 per pupil, according to the SchoolWear Association.
Stephanie Ward, founder of the How to Save £50k, blog, suggests putting money aside each month for school uniform purchases.
She said: "Having your general finances in control makes a huge difference, as does making good buying decisions.
"I put £10 a fortnight away for school uniform purchases."
Cashback sites
See if you could be earning money back on all that spending you are doing on your children.
Sign up to cash back websites such as Quidco and TopCashback and you will get money back immediately if you register your debit card and use it at participating retailers.
TopCashback estimates that its members earn £300 per year.
Also, check the websites for deals.
TopCashback, is currently offering £5.25 cashback for Kid’s passes, which include heavily discounted rates to attractions such as The Sealife Centre and Oxygen trampoline park.
How do cashback websites work?
They promise to earn you money on your shopping – but how do cashback websites work?
- Cashback sites agree offers with retailers which they pass on to customers
- This can vary from a set amount of money off whatever you are buying, or a percentage of the cost of your purchase
- The sums range from pennies for groceries to more than £100 for some mobile or broadband contracts
- You have to make your purchases by clicking through from the cashback site
- Because the sites drive traffic to retailers, they earn money from brands they support
- Membership of most sites is free – although some offer premium subscriptions which you pay more for.
Reward schemes
You are likely to spend a lot of time and money in supermarkets as a parent.
Reward schemes such as Tesco Clubcard or Sainsbury's Nectar scheme let you earn points on your spending that can be used to access special deals on shopping, events and attractions.
Money-saving parents Ricky and Naomi Willis, who run the Skint Dad blog, said they have saved £600 per year using Tesco Clubcard.
There are also apps such as My VIP Rewards that let users access cash back and large discounts off selected cinema deals and days out from just £3.99 per month.
Get crafty
You don't always have to spend money to have fun.
Websites such as YouTube can keep your kids occupied with craft lessons or you can get expert sessions for free on websites like SkillShare.
It offers video tutorials on comic book drawing and learning to code.
Some videos are free or you can pay £123 a year for access to thousands of creative tutorials to keep your children entertained.
Join the National Trust
There is no cost to enjoying nature and you and your child could explore the great outdoors at some of the UK's largest and most historic stately homes.
Access to National Trust grounds and gardens is often free or you could spend £10.50 per month for a family of four to be able to explore its hundreds of buildings.
Plan your meals
You may feel like you spend too much time cooking, cleaning and carrying children around as a parent.
Will Lenehan, financial expert at OpenMoney, said planning weekly meals can save time and money.
He said: "Create a food plan for the week which includes lunches, snacks and dinners.
"By including a selection of at-home and picnic style meals, you can be ready for anything, whether you are spending the day at home, or going on a day trip with the family."
Supermarket loyalty schemes – which has one?
MOST UK supermarkets have loyalty schemes so customers can build up points and save money while they shop.
Here we round up what saving programmes you'll find at the big brands.
- Iceland: Unlike other stores, you don't collect points with the Iceland Bonus Card. Instead, you load it up with money and Iceland will give you £1 for every £20 you save.
- Lidl Plus: Lidl customers don't collect points when they shop, and are instead rewarded with personalised vouchers that gives them money off at the till.
- Morrisons: The My Morrisons: Make Good Things Happen replaces the More Card and rewards customers with personalised money off vouchers via the app.
- Sainsbury's: While Sainsbury's doesn't have a personal scheme, it does own the Nectar card which can also be used in Argos, eBay and other shops. You need 200 Nectar points to save up £1 to spend on your card. You need to spend at least £1 to get one Nectar point.
- Tesco: Tesco Clubcard has over 17million members in the UK alone. You use it each time you shop and build up points that can be turned into vouchers – 150 points gets you a £1.50 voucher. Here you need to spend £1 in Tesco to get one point.
- Waitrose: myWaitrose also doesn't allow you to collect points but instead you'll get access to free hot drinks, and discounts off certain brands in store.
Plan your snacks too
Children love asking for snacks whether they have just had breakfast or dinner is being dished up.
You may end up paying a premium for food when on a day out such as at a theme park or cinema.
Pack your own snacks so you don't end up spending a fortune on food.
Cinema popcorn can cost around £5 for a box or you can buy a 100g bag from Tesco for £1.
Blue and green flag locations
Enjoy accredited beaches or parks for free.
Search the Green Flag award website for globally recognised outdoor spaces that you can enjoy for free.
Similarly, there is a blue flag scheme that highlights the best beaches that cost nothing to sit on or swim in.
Young person's railcard
Your child may get a bit more independent as they get older but they may still need financial support.
Help save yourself some money if your teen is regularly travelling by train.
They could get a young person's railcard from age 16 that gives them, and possibly you, a third off fares.
It also lasts until age 25, when hopefully they can manage their own finances.
We pay for your stories!
Do you have a story for The Sun Money team?
Email us at [email protected]
Source: Read Full Article