New costs squeeze UK families
Further rising costs are going to make the finances of many British households even tighter. New research has found that the cost of bringing up a child has increased to £218,000 now.
Those thinking about having a baby should think about it twice. Latest figures from the annual ‘Cost of a Child Report’ from insurance firm LV= found that raising a child from birth until their 21st birthday was a record £218,024. This shocking figure equates to £10,382 a year, £865 a month and £28.44 a day.
In the last months, other price hikes have been threatening the pockets of a number of Brits. With petrol, energy and home insurance quotes increasing their costs recently, children are now another economic load to add to the already squeezed bank accounts of many UK families.
“Despite an uncertain UK economy forcing more pressure on the family budget, it’s clear that parents don’t begrudge the money they spend on their children, and would rather do without themselves than radically cut back on what they can provide for their children,” said Mark Jones, Head of Protection at LV=.
Budget cutbacks
This hike has led three quarters of UK parents (76%) to make cutbacks to the family budget such as only buying ‘value’ goods in their weekly shop or spending less on hobbies and toys.
Raising a child in greater London is the most expensive location at £239,535, compared to the North East where it stands at £202,383. Northern Ireland, East of England and Inner London, however, are all similar in costs at £228,363, £228,685 and £228,989 respectively.
Kids, however, demand different spending effort to their parents depending on the stage of their life. According to figures from LV=, during their first 4 years of life they will set parents back an average of £14,140 a year. However, once the child is old enough to go into higher education, parents will be spending an average of £17,459 a year.