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Childcare accounts for half the cost of raising a child
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.”
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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