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Childcare accounts for half the cost of raising a child

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10/10/2014
At an average cost of more than £40,000 childcare accounts for more than half of the cost of raising a child to secondary school age.

 

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 
Food  £77.41 
Schooling  £44.85 
Holidays  £59.17 
Clothes  £38.81 
Toys  £23.42 
Leisure & hobbies  £39.23 
Furniture  £18.35 
Personal care  £20.64 
Childcare  £311.66 
Total  £633.54 
Annual Cost  £7,602.50 
Total cost from newborn to age 11  £83,627.45

Source: Halifax

 

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