The cost of raising a child is more expensive now than ever before, as the rising cost of childcare, education and food takes its toll on parents.
The cost of bringing up a child until their 21st birthday now totals £218,000 – the equivalent of more than £10,000 per year.
That is the finding from the annual ‘Cost of a Child Report’, published by insurance and investment firm LV=, which found that the cost of raising a child has increased by more than 3% in the last year alone.
Since the first Cost of a Child Report, which was released in 2003, the price of bringing up a child has increased by 55%.
The latest report found that education and childcare are still the biggest expenses for parents. Childcare alone costs parents more than £62,000 over the course of their child’s first 21 years.
Education saw the biggest increase over the past year, going up by 5%. This is due to the rising cost of things like school uniforms, after-school clubs and university tuition fees.
“Our report shows education costs have increased dramatically and despite financial pressures, many parents are seeking out savvy ways to ensure they can still afford their children’s higher education prospects,” said Mark Jones, Head of Protection at LV=.
“With tuition fees increasing this year we expect to see more parents making significant cut backs across the family budget to accommodate this,” added Jones.
The report found that the majority of parents are trying to reduce costs, with spending on toys and hobbies down 5%.
More than three quarters of parents are trying to reduce their spending, with 67% of those seeking out lower cost items and ‘value’ goods in their weekly shop.
Over a third of those cutting back are choosing to buy items from second hand shops, and 34% are raising extra funds by selling goods on eBay.
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