Money, benefits and the cost of a baby

The cost of a first baby is substantial, and it divides sharply into unavoidable expenses, ongoing costs, and a large category of things marketed as essential that are not.

What is genuinely needed

A short list.

A safe sleep space: a cot, crib or moses basket with a firm flat mattress.

A car seat appropriate to the age, correctly fitted, and new or from a known source.

Nappies and wipes, or reusables and the washing capacity for them.

Clothing, in quantity, mostly sleepsuits and bodysuits.

Feeding equipment: bottles and sterilising kit if formula feeding or expressing, plus formula, which is a substantial ongoing cost.

A way of transporting the baby: a pram or a sling.

Somewhere to change them and something to bathe them in, both of which can be improvised.

And that is close to complete.

What is optional

Marketed hard and frequently unused.

Nursery furniture sets, changing tables, cot bedding sets which mostly cannot be used under safe sleep guidance, baby baths, bottle warmers, nappy bins, top-and-tail bowls, wipe warmers, and most of the equipment aisle.

Sleep positioners, pods and nests, which are advised against.

Movement and breathing monitors, which have no evidence of preventing sudden infant death.

Baby walkers, which are advised against.

Toys, which for the first six months are essentially unnecessary.

And multiple prams, which many families end up with because the first one did not suit.

Buying second-hand

Where the savings are largest.

Clothing, which is outgrown in weeks and is frequently barely worn.

Prams, cots, high chairs, slings, toys and books, provided they are undamaged, complete and not subject to a recall.

The exceptions: car seats, which should not be bought from an unknown source since collision damage is invisible; and mattresses, where guidance in some countries advises a new one or at least a new well-fitting cover.

Local groups, charity shops and family are the main sources, and baby banks operate in many areas providing essentials to families in need.

Ongoing costs

Where the real expenditure is.

Childcare, which in many countries is one of the largest household costs and which frequently exceeds housing.

Nappies, which for a single child amount to thousands over the first years.

Formula, if used.

Food.

Clothing and shoes as the child grows.

And lost income during leave and any reduction in hours afterwards, which is generally the largest single financial effect and the least calculated.

Support that is frequently unclaimed

Varying by country and worth checking specifically.

Statutory maternity, paternity, parental and adoption pay, and any employer enhancement.

Child benefit or equivalent, which in some countries must be claimed even where income makes it repayable, in order to protect pension credits.

Income-related benefits and tax credits.

Childcare funding, subsidies and tax-free childcare schemes.

Grants for families on low incomes towards the costs of a new baby.

Free vitamins, milk or food vouchers for eligible families.

Free prescriptions and dental care during pregnancy and for a period afterwards in some systems.

And charitable grants, which exist for specific circumstances and are almost never applied for.

Take-up of means-tested support is consistently below eligibility, frequently because people assume they will not qualify.

Practical financial steps

Worth doing in the first year.

Check entitlements using an official benefits calculator rather than assuming.

Review childcare funding rules, which frequently have registration deadlines well before the child is eligible.

Check whether pension contributions are protected during leave.

Update life insurance and make or update a will, including guardianship provisions, which most new parents postpone indefinitely.

Check whether any workplace benefits apply.

And budget for the return to work, which frequently costs more than expected in childcare and travel.

Reducing the cost

Practically.

Breastfeeding where possible and wanted, which removes the formula cost.

Reusable nappies, where the washing capacity exists.

Libraries for books and, in some areas, toy libraries.

Buying ahead in sales for the next size up.

Accepting hand-me-downs, and passing them on.

And resisting the purchases made in the first exhausted weeks, when the promise that a product will improve sleep is very difficult to refuse.

General information only, not financial advice. Entitlements vary by country — check with an official benefits calculator or an advice service.