|Thinking Of Starting A Family? It Will Cost You!|
The average child costs over £210,000 but Greater London kids top this at £220,769
The annual "Cost of a Child Report" from insurance, investment and retirement group LV= has shown that the cost of raising a child until their 21st birthday now totals more than £210,000. Meaning you need £10,040 a year, £836 a month or £27.50 a day! Today's cost of raising a child is up 50% from LV='s first Cost of a Child Report in 2003.
The Report shows that the cost has increased by 4.5% in the last year, ahead of the official headline rate of inflation (CPI) at 3.7% with childcare and education remaining the biggest expenditure, costing parents a mammoth £67,430 and £55,660 respectively over their offspring's childhood. In London this peaks at £11,050 per year for nursey places.
Where exactly does that money go?
The £210,848 potential cost of raising a child in the UK in 2010 is made up of the following expenditure:
The cost of raising a child rises the most during university years (age 18-21), when parents could face having to pay out £14,634 a year. New parents face outlaying £9,152 during the first twelve months of a child's life and between the ages of one and four, a child costs an average of around £53,586 - that's £13,396 a year.
The breakdown of parental spending by different years of a child's life is as follows:
Mark Jones, of LV= said:
Monica Costa, founder of London Mums told us:
“The biggest issues facing London Mums are childcare and schooling. Families moving to London are usually not from London, i.e. either from either areas of the UK or from abroad. This means less access to grandparents and other supporting relatives and increased need to pay for childcare. The cost of education is incredibly high as well and lack of state schools in the capital makes it inevitable to choose expensive private schools. Peer support groups such as London Mums are very important to create support networks families can rely on when looking for reliable childcare, free advice on school appeals and other parenting issues.“
The report saw signs of this savvy parenting as parents reported thier roles as bargain hunters' was on the increase. Nearly three-quarters (70%) have been actively shopping for lower cost items and ‘value' goods in a bid to cut back. With nearly half (42%) selling unwanted items on eBay and at car boot sales, and 41% are bargain hunting in second hand shops, an increase from the 31% of parents bargain hunting in last year's report.