Parents-to-be put financial planning before family planning

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It may take nine months to hear the pitter-patter of tiny feet, but it now takes parents more than a year to lay the financial foundations for a new arrival, new research reveals.

New figures from Experian CreditExpert show that parents start financial preparations for a new baby an average of 12 months before the birth, with two fifths (43 per cent) starting saving before even trying for a baby. [1]

And as a majority of parents-to-be (51 per cent) are expecting to have a new arrival between September and the end of the year, the time to start preparing financially is now. The research reveals that December - already many families' most expensive month - is also 2012's boom time for babies, with 21 per cent of the year's births expected.

Planning ahead is certainly prudent. According to the Credit Expert figures, it costs an average of £1,800 for a new arrival, with 13 per cent of parents-to-be expecting to spend more than £2,000, and eight per cent more than £4,000.

Perhaps as a result, two fifths (38 per cent) have delayed having a baby for financial reasons - while a fifth of expectant parents (20 per cent) admit they cannot afford a baby but that age means they are unable to wait any longer.

And the importance of spreading the cost is underlined by the number of mums apparently forcing to minimise their maternity leave. More than half of mothers-to-be (53 per cent) are planning to work until the last minute before giving birth, while one in 10 (11 per cent) will then return to work as soon as they can.

Yet despite this, one in 10 prospective parents (nine per cent) made no financial preparations until they knew they were pregnant - and one in 20 (six per cent) not until six months before the birth.

With 14 per cent looking to spread the cost with a credit card and six per cent with a loan, the research also shows the importance of parents getting their credit rating in good shape. You can get unlimited Experian Credit Scores and credit reports with a 30-day free trial [2] of CreditExpert.

Peter Turner, managing director of Experian Interactive, said: "A new arrival is an exciting time - but it can be an expensive one. The key is to think carefully, and honestly, about how much a baby will cost. Start planning sooner rather than later, spread the cost over the course of your entire pregnancy, and try to make sure your credit score is in the best possible shape, so you can spread the cost of large one-off payments. Your little bundle of joy can come with a large price tag, but there are ways to give your child the very best start in life without breaking the bank.

"But with so many babies expected in December, it's tempting to wonder whether savvy parents are looking to combine Christmas and birthday presents for their little one."

The research also reveals the range of tactics parents will be taking to meet the cost of a new-born, with one in three (33 per cent) only shopping during the sales and one in five (18 per cent) turning to every younger sibling's worst nightmare - hand-me-downs.

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[1] Figures from research carried out on behalf of Experian in January and March 2012, based on a representative sample of 2,000 adults.

[2] New customers only, monthly fee applies after free trial.