A report by nursery retailer Mamas & Papas found 20% of young families are taking our loans, while 28% are borrowing money from family as they feel the financial pressure of the recession.

Meanwhile, one in three new parents are concerned about how they will pay off their debts and even more worry about how they can save for their children’s future.

The research also revealed parents are most likely to feel under financial pressure when their children are aged under two than at any other time, with over half (56%) worrying about income and finances, 22% arguing with their partner or family about money and 19% seeing an increase in their household debt.

Worryingly 27% of parents of under twos admit they’ve stopped saving as a result of having a family, while 32% have dipped into savings in order to make ends meet.

The findings coincide with the launch of Mamas & Papas ‘Baby Basics’- a list of 21 essential items parents will need for a total of £717.

Olivia Robinson, creative and brand director of Mamas & Papas, said: “As parents we understand that Mums and Dads worry about what they need to buy for their new baby and how much it’s going to cost. We recognise that for many parents this is a real challenge, so have used our experience to create the Mamas & Papas Baby Basics list. Parents can be assured that when they purchase the products on the list they are getting everything they need without breaking the bank!”