Cost of raising a child soars by a third
The annual Cost of a Child survey from LV= shows that parents could spend £186,032 on raising a child from birth to the age of 21. This amount is equivalent to £8,859 a year, £738 a month or £24.30 a day.
The survey shows that the cost of raising a child has increased by 33% over the 5 years since the survey began in 2003. Childcare and education remain the biggest expenditures, costing parents £50,538 and £47,310.
Looking into the future, LV= has predicted that by 2012 the cost of raising a child in the UK could reach £265,577, equivalent to more than £12,500 each year. This means that over the 10 years since the study began in 2003, the cost of raising a child in the UK would have almost doubled, increasing by a staggering 90%.
Nigel Snell, communications director at LV=, said: “The projection figures are quite staggering and it’s unrealistic to expect people’s income levels will increase in line with this rising level of expenditure.
“This means parents will need to be switched on about their family finances more than ever, even though they have always known that raising a child is costly. With UK debt figures rising we would recommend starting financial planning as early as possible to help meet the various costs associated with raising a child.”