Childcare accounts for half the cost of raising a child
According to research by Halifax parents spend almost £85,000 raising a child to age 11. Of this childcare accounts for over £600 every month, or £41,139 over 11 years. Food, the second highest expense, accounts for just a quarter of this figure at £77 per month.
Parents in London pay the most for childcare – £386 per month – while North England has the lowest monthly spend at an average of £289. Childcare is most expensive in the early years, falling from an average of £400 for the first four years to £200 in later years.
The first year of a child’s life is by far the most expensive, according to Halifax. Parents spend more than £8,500 in the first year alone, dropping to a low of £6,489 for a child aged between five and eight years.
Richard Fearon, head of Halifax Savings, said: “It is no exaggeration that having children is a huge commitment. The stark reality of how much it could cost you over the long term should not be underestimated. The initial outlay can be a burden in the first year, but childcare remains a big expense through those early years, meaning careful financial planning is essential.”
See the chart below to see how average costs per month break down.
|Category||Average monthly spend|
|Leisure & hobbies|
|Total cost from newborn to age 11|