--- title: "Starting a family | Pensions Advice UK" url: https://pensionsadviceuk.com/starting-a-family/ description: "What steps to take to prepare financially. \\ \\*The Financial Realities of Raising a Child: A Comprehensive Guide\\ \\*" last_updated: 2023-10-16 publisher: "Pensions Advice UK (a trading name of GAP-GNX Ltd)" language: en-GB --- Guide # Starting a family What steps to take to prepare financially Last updated 16 October 2023 **Written October 2023.** Tax allowances, limits and pension rules may have changed since then, so some figures here could be out of date. For current information, see our guide to [getting pension advice](https://pensionsadviceuk.com/pension-advice/). ### Having a baby is one of the most exciting, life-changing events that you’ll ever experience. But along with the joy and happiness that comes with starting a family, there is also the reality of the added costs. \*\*The Financial Realities of Raising a Child: A Comprehensive Guide\*\* The joys of parenthood are unparalleled, but the financial implications are substantial and demand attention. In 2021, the statistics revealed that the average cost of bringing up a child until the age of 18 amounted to £160,692 for couples and rose to £193,801 for single parents[1]. These figures have seen a notable increase since their initial recording in 2012, emphasizing the importance of prudent financial planning for prospective parents. To ensure financial stability while navigating the costs of parenthood, consider the following strategies: 1. \*\*Budgetary Planning\*\*: Before expanding your family, it’s crucial to have a clear understanding of your financial landscape. Monitor your monthly income and expenditures meticulously, determining potential savings. If your financial dynamics are expected to change post-childbirth, consider revisiting and adjusting your budget, prioritizing essential expenses. 2. \*\*Establishing an Emergency Fund\*\*: An emergency fund serves as a financial buffer, safeguarding against unforeseen adversities. It’s advisable to allocate funds equivalent to three to six months of living expenses, ensuring you’re prepared for unexpected financial challenges. 3. \*\*Family Security Measures\*\*: Ensuring your family’s financial security, especially in unforeseen circumstances, is paramount. This encompasses comprehensive life insurance, critical illness coverage, and income protection mechanisms. Additionally, drafting a will is essential, clarifying asset distribution and appointing guardians for your child, if necessary. 4. \*\*Investing in Your Child’s Future\*\*: As parents, securing your child’s future is a top priority. Initiating savings early can provide substantial benefits in the long run. Various instruments, such as Junior Savings Accounts, Children’s Bonds, and Junior Personal Pensions, can be considered. However, investments are inherently volatile, necessitating informed decisions or consultation with financial experts. For a detailed understanding of the data, [please refer to the comprehensive report](https://cpag.org.uk/policy-and-campaigns/report/cost-child-2021). \*\*Note\*\*: The nature of investments can be both rewarding and risky. It’s imperative to either be well-informed or to seek specialized advice before making investment decisions. ### Would you like to speak to an adviser? Tell us what you need help with and we’ll introduce you to an FCA-authorised adviser. It’s free to enquire. [Get started](https://pensionsadviceuk.com/qualified-advice-request/) ### Important information This content is for information only and should not be considered legal, tax or financial advice. Pensions Advice UK is a trading name of GAP-GNX Ltd. We are not authorised by the Financial Conduct Authority and act solely as an introducer. The value of pensions and investments can fall as well as rise, and you may get back less than you put in. Tax rules can change and depend on your circumstances. ## Speak to an FCA-authorised adviser Tell us what you need help with and we’ll introduce you to a qualified specialist. Start your enquiry 020 3778 0939 We’re an introducer, not an adviser. [Call us](tel:+442037780939) [Enquire](https://pensionsadviceuk.com/qualified-advice-request/) --- Pensions Advice UK (a trading name of GAP-GNX Ltd) connects UK residents with FCA-authorised pension advisers and pension tracing services. It is not FCA-authorised and does not give financial or tax advice. It acts solely as an introducer to FCA-authorised firms, who provide any advice and explain any fees before you proceed. This is the text version of https://pensionsadviceuk.com/starting-a-family/. More pages: https://pensionsadviceuk.com/llms.txt