The Cost Of Raising Kids
February 25, 2010
It’s official the cost of raising a family has reached a new high. A new report suggested for the first time the amount of money spent per child from birth to age 21 years has topped £200,000 – a rise of 43% from the first survey 2003.
This even takes into account parents cutting down on expenditure during the recession. In the first year alone expect to fork out £9,152. The biggest drain on finances was childcare followed by nursery fees, holiday and after school clubs coming in at a whopping £54,696. Education costs were put at £52,881, food £17,490, clothing £14,035 and holidays at £13,207.
Peak expenditure times were during the university ages of 18 to 21 when you could expect to pay £13,677 a year. London families topped the expenditure list with an average of £220,769 and the least expensive was £177,706.
With parents continuing to worry about money more than three quarters of them say that they have cut back on family expenditure during this tough economic climate. Even kids are helping their parents with some 13% of parents being asked for less pocket money.
Mike Rogers, group chief executive of LV= who are part of Liverpool Victoria, commented “Every parent will know how expensive it can be to raise a little one and, as parents, we know we don’t begrudge a single penny of it.
“But I suspect many new and prospective mums and dads will be a little shocked to see the potential financial burden ahead of them.”
Stressing the importance of planning ahead chief executive of Child Trust Fund provider The Children’s Mutual David White said it was important for parents to plan ahead. “I think the cost of raising children is definitely increasing and of course this is a hugely emotional matter for families because it is their kids.
“What we are finding is that parents are becoming more aware of this and planning ahead. It is much better to save from when the child is very young and to start saving for their long-term future.”