You are here: Home - Saving-Banking - News -

Childcare accounts for half the cost of raising a child

Written by:
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


Tag Box

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.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

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.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week