Sunday, 25 February 2018
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finance

Feb / March 2012

Cost of raising a child increases to £218,000

A report published by a UK insurer has revealed that the cost of raising a child from birth to their 21st birthday now totals a massive £218,024. This works out as £28.44 a day.

The annual Cost of a Child document by LV= showed that raising a child has increased by over 3% in the last year with education and childcare remaining the biggest expenditures, costing £71,780 and £62,099 respectively. The cost of education, including school uniforms, after-school clubs and university tuition fees has seen the biggest rise with a 5% increase in spending over the past year.

Some expenditure has decreased, potentially an unwelcome change for some children and their families, as just over three-quarters of parents have been looking at ways to cut back with spending on toys and hobbies down 5%.
The rising cost of living means that many parents are looking at ways to make the family budget stretch further. This means for 67% of those surveyed hunting down lower cost items or ‘value’ goods in their weekly shop. Over a third are saving money by buying from second hand shops and 34% are making some extra money through auction sites like eBay.

It seems that families are keeping a close eye on what money is coming in and going out with nearly a third, 30% of parents making reductions to their outgoings by devising a specific budget for the family to stick to,.
The breakdown of how much parents are spending throughout the life of their child is also revealing with the first year of life costing £10,261 and years one to four costing £14,140 a year.
Our reader comments on our Facebook page at www.facebook.com/ni4kids show that if your child is at school, the demands on your purse strings really increase.
ni4kids asked if your kids were expensive and Gary T replied: “They can be. We just sent £250 into school for a trip to Holland later this year...there’s more left to pay. Couple that with pending school fees for next year, along with two club memberships and I can see how it adds up. I'm starting to think our son may have to start going without dinner!!”

Joe M added: “Totally agree with Gary. There is not a day that's goes by that I am not handing out money for clubs, dance lessons etc...I also have an impending school trip at the cost of €300; just give my son money for school this morning to enter a Maths competition. Apparently it’s for charity. Yes kids are expensive!”
Gary T also explained: “P7 has been the most costly year thus far for us. Trips, clubs, increased knowledge of clothing brands, transfer test tutors and entry fees…”
It seems that the costs for extra-curricular activities can really mount up if you have more than one school age child as Maggie I detailed.

“Love my three to bits but constant outgoings for dance, rugby, football etc. and that’s only the two at school!
She continued: “Am shortly returning to work after three and a half years career break part time mornings. First return offer of full time post would cost me more in childcare than salary generated! Do not underestimate financial cost of stay at (home) parents to a household never mind the tangible cash going out! Kids are worth it though.”

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