New parents left almost £10,000 worse off in their first year due to costs | Personal Finance | Finance

New parents find themselves on average £9,582 poorer during their child’s first year, due to a decrease in income and the added expenses associated with a newborn. 

A survey of 1,000 individuals who became parents for the first time in the last five years revealed that the monthly household income fell by nearly £600 equating to an annual loss of £7,200.

To help save a little extra, 49% compared prices before purchasing newborn items, 37% opted for second-hand goods, and 35% accepted hand-me-downs.

However, the ongoing costs of nappies and baby food emerged as some of the most unexpected financial burdens for new parents. An additional £225 was spent monthly on baby essentials such as nappies, baby food, snacks, and drinks.

Clothingamounted to approximately £127 over the year, while participation in baby groups and classes set new parents back around £415.

According to the study, 64% felt the financial strain of having a child was greater than anticipated, with 45% reporting increased stress levels as a result.

Furthermore, 29% stated that the financial impact negatively affected their overall wellbeing, with 23% claiming it hindered their ability to make healthy dietary choices.

The research was commissioned by Aldi, which has introduced its ‘Mamia New Parent Fund’ to help families manage the costs associated with welcoming a newborn. The supermarket is set to gift a £100 in voucher, every week, for a year, to new parents.

Julie Ashfield from Aldi UK expressed: “No parent ever forgets the joy of welcoming a new child, but it often also brings unexpected financial challenges.

“Even after the big-ticket purchases before the baby arrives, there’s suddenly lots of new items to add to your weekly grocery list for the first time.”

Parents can throw their hat in the ring for the Fund by emailing mamiaparentfund@aldi.co.uk with a receipt showing their latest Mamia nappy purchase.

Julie further stated: “This fund is just another way that we’re supporting parents to help them better enjoy every moment with their new arrival. As the UK’s cheapest supermarket, we’re committed to doing whatever we can to support parents in making their money go further.”