You are here: Home - Household Bills - News -

Parents spend half their salary on their children

0
Written by: Emma Lunn
18/10/2019
The average parent earns £29,009 annually and spends £14,916 on their child each year.

Parents are spending half of annual their salary on education, holidays and music lessons for their children, according to Creditfix.co.uk.

The personal insolvency practice’s UK Spending Report found that parents are spending an average of £14,916 on their child each year. This is more than half of the average British salary, which comes in at £29,009 a year.

One in three parents say they underestimated the costs associated with raising a child and shockingly, when asked if having children was worth every penny, only 39 per cent of parents said “yes”.

The most expensive monthly cost attached to bringing up a child has been found to be education fees including university costs, school fees and extra-curricular activities, which set parents back £1,497 a year on average.

The second biggest expense is holidays, which averages £1,337 per year per child, and this is followed by food bills at £1,250.

The average parent also pays £1,164 for childcare each year and music lessons costing an average of £1,102 a year.

However, despite the additional costs the average parent was found to have £5,240 in total savings – just £724 less than those without children (£5,964).

Taylor Flynn, head of marketing at Creditfix, said: “It is difficult to anticipate the true cost of raising a child, especially for first time parents who are learning on the job, and even more so when the cost of living in inflates year-on-year while salaries don’t necessarily increase in line with this.

“The experience of raising a child is a beautiful and priceless thing, even if parents may not always feel that way when they are experiencing extreme financial pressure. There are resources available to all parents that can help with planning to ease financial strain, so they can spend less time worrying about money and more time enjoying parenthood.

“The good news is that the UK Spending Report actually suggests that parents could be better at managing their finances than those without children, as despite significant additional monthly outgoings, their total savings are only a fraction behind that of their non-parent counterparts.”

 

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • RT @WeareJust_PR: Many people struggling to make ends meet may not realise they are entitled to financial help or find the system too confu…
  • Many people struggling to make ends meet may not realise they are entitled to financial help or find the system too… https://t.co/w1QnsHmlmP
  • There's only a few more days to go until #furlough ends and the #JobSupportScheme comes into force. I have explored… https://t.co/OkPw28eiBw

Read previous post:
MPs urge Barclays to reverse Post Office cash withdrawal ban

Ministers criticised the bank for the “retrograde” decision in a letter to Barclays chief executive.

Close