MORE than a quarter of the Isle of Man’s couples do not save for the arrival of their first child, according to a new survey conducted by Lloyds TSB.
The online survey, conducted as part of its Growing Together campaign, reveals today the shock figure that it can cost as much as £201,809 to raise a child to the age of 21.
The news comes as the bank also launches a campaign to reward the Island’s young savers this Christmas. Any Isle of Man residents that open a child savings account will see their initial deposit, of up to £25, doubled. The account can be opened in the name of any child from newborns to the age of 11, will run from the beginning of December to the 15th January.
The survey also shows that over a quarter (28%) of those living in the Isle of Man have started saving for their child’s future. For parents who want to go back to work after their child is born, arranging childcare can be expensive; and two thirds (68%) of new parents in the Isle of Man have concerns about being able to afford this invaluable service.
Respondents were also asked how much they would expect to budget for their new arrivals:
· Nearly half (43%) would expect to budget £100-£500 to decorate and furnish a baby’s nursery
· Nearly a quarter (20%) have set aside under £100 per month for their baby, including food, nappies, clothes, toys and activities, while half (51%) set aside between £100-500
· Over half (55%) would expect to spend £1,000 - £5,000 in the first year of their baby’s life on food, clothes, nappies and equipment like a prams, whilst two in ten (20%) would expect to spend £500 - £1,000 and 18% would expect to spend £5,000 - £10,000.
The survey further shows that nearly two thirds (60%) of those living in the Isle of Man only set aside under £100 per month to treat themselves, followed by 30% who hold back £100-£500. It appears that new parents have also taken the decision to sacrifice holidays (28%), and reduce their clothing budget (23%), closely followed by cutting back on eating out, socialising and evenings out.
Lucy Felton, business development manager at Lloyds TSB, said, “It’s certainly surprising to read that a quarter of new parents in the Isle of Man have no savings account and 20% have done nothing to prepare for their family’s financial future.
“It is incredibly important to try to plan for each stage as there are going to be some big expenses along the way – from birth and education, to moving house to accommodate your expanding brood - so it's important to think about your savings on a long term basis.
“With so much to think about with the arrival of a new family member, Lloyds TSB has produced two budget planners for your new arrival and family life; and of course you can always drop into your local branch to speak with a Lloyds TSB advisor direct about any questions you may have.”
Meanwhile, with childcare playing such an important role in supporting mums and dads across the Isle of Man, there’s still time to nominate someone special for the Lloyds TSB Child Carer of the Year Award.
Lucy Felton added, “This is a great opportunity to say a big thank you, to all those grandparents, crèches, nursery workers and registered childminders who make life just that little bit easier. Visit http://www.lloydstsb-offshore.com/your-journey/growing-together/child-carer/nominate/ to find out more.”
