Budgeting for a newborn child is a significant challenge for new parents and in preparation of their child entering the world, a parent’s considerations of where to spend money extends much further than baby essentials, prams or nursery equipment.
We know from our Parents Insights data that parents are financially savvy, (40% of expectant parents have a mortgage and over half (55%) have a financial product in place for their children) but there are changes and developments in the way they are choosing to spend money before the baby arrives. Our latest data shows they’re also spending thousands of pounds indirectly related to the birth of a new child.
One of the biggest purchases and investments some parents choose to make in anticipation of their baby’s arrival is to move into a new home. Over a third of parents say they have done so in either anticipation of, or because of the baby and those that do are spending on average £60,200 moving to a new home. Whilst not everyone will move home because of their new arrival, many will invest in home improvements – this is the most popular spending point, with around three-quarters (74%) upgrading their home. An average parent spends around £4000 on decorating and babyproofing their house, an activity that is clearly very important amongst this group.
New cars are another indirect spend associated with the arrival of a little one, with almost two in five parents (38%) reporting to have either purchased or are planning on purchasing a car. The average spend on a new car is just under £8,000, illustrating just how much having a safe car that is the right size can be worth. This also demonstrates how more car manufacturers and sellers should be communicating with parents when it comes to their products and marketing, particularly safety credentials which will be a top factor in the final decision a parent makes.
Finally, there has been an increase in the number of ‘babymoons’ been taken. These pre-baby holidays have become increasingly popular, over a third (36%) of parents say they are either planning or have gone on a ‘babymoon’ holiday. Those choosing to get away before the baby arrives, are spending on average £1750. This figure suggests of those who choose to get away, they are willing to splash out on trips to spend quality time together before life becomes baby-centric – presenting an opportunity for hotels and holiday companies to run special promotions and services to really attract these expecting parents.
These findings show that brands need to think beyond the core group of products directly associated with having a baby and prove that it is a group worth marketing to as they are willing to part with their cash. Capturing expectant parents before their baby arrives and providing them with a fantastic product or experience will help retain this group through their years as parents, providing ample opportunities to engage and sell products to them in the future.
To download a complimentary Parents Insights report click below: